Question 1. Olivier Framing's cost formula for its supplies cost is $2,960 per month plus $19 per frame. For the month of January, the company planned for activity of 545 frames, but the actual level of activity was 546 frames. The actual supplies cost for the month was $12,997. The spending variance for supplies cost in January would be closest to:
a.$337 F
b.$318 U
c.$337 U
d.$318 F
Crose Inc. is working on its cash budget for November. The budgeted beginning cash balance is $23,100. Budgeted cash receipts total $118,700 and budgeted cash disbursements total $115,500. The desired ending cash balance is $41,900.
Question 2. To attain its desired ending cash balance for November, the company needs to borrow:
a.$41,900
b.$0
c.$68,200
d.$15,600