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Questions
Q:
Montaigne Corp. has the following information about its standards and production activity for November. The controllable variance is: Actual total factory overhead incurred
$28,175 Standard factory overhead: Variable overhead .
$3.10 per unit produced Fixed overhead ($12,000/6,000 estimated units to be produced)
$2 per unit Actual units produced ..
4,800 units A. $1,295U.
B. $1,295F.
C. $2,400U.
D. $2,400F.
E. $3,695U.
Q:
Montaigne Corp. has the following information about its standards and production activity for November. The volume variance is: Actual total factory overhead incurred.
$28,175 Standard factory overhead: Variable overhead ...
$3.10 per unit produced Fixed overhead ($12,000/6,000 estimated units to be produced)
$2 per unit Actual units produced ..
4,800 units A. $1,295U.
B. $1,295F.
C. $2,400U.
D. $2,400F.
E. $3,695U.
Q:
Adams Co. uses the following standard to produce a single unit of its product: variable overhead (2 hrs. @ $3/hr.) $6. Actual data for the month show variable overhead costs of $150,000, and 24,000 units produced. The total variable overhead variance is:
A. $6,000F.
B. $6,000U.
C. $78,000U.
D. $78,000F.
E. $0.
Q:
A company's flexible budget for 48,000 units of production showed variable overhead costs of $72,000 and fixed overhead costs of $64,000. The company incurred overhead costs of $122,800 while operating at a volume of 40,000 units. The total controllable cost variance is:
A. $ 1,200 favorable.
B. $ 1,200 unfavorable.
C. $13,200 favorable.
D. $13,200 unfavorable.
E. $15,200 favorable.
Q:
The difference between the total budgeted fixed overhead cost and the fixed overhead applied to production using the predetermined overhead rate is the:
A. Production variance.
B. Volume variance.
C. Overhead cost variance.
D. Quantity variance.
E. Controllable variance.
Q:
The sum of the variable overhead spending variance, the variable overhead efficiency variance, and the fixed overhead spending variance is the:
A. Production variance.
B. Quantity variance.
C. Volume variance.
D. Price variance.
E. Controllable variance.
Q:
Overhead cost variance is:
A. The difference between the overhead costs actually incurred and the overhead budgeted at the actual operating level.
B. The difference between the actual overhead incurred during a period and the standard overhead applied.
C. The difference between actual and budgeted cost caused by the difference between the actual price per unit and the budgeted price per unit.
D. The costs that should be incurred under normal conditions to produce a specific product (or component) or to perform a specific service.
E. The difference between the total overhead cost that would have been expected if the actual operating volume had been accurately predicted and the amount of overhead cost that was allocated to products using the standard overhead rate.
Q:
The following information describes a company's usage of direct labor in a recent period. The direct labor rate variance is: Actual hours used .
45,000 Actual rate per hour ..
$15 Standard rate per hour ..
$14 Standard hours for units produced ...
47,000 A. $28,000 favorable.
B. $28,000 unfavorable.
C. $45,000 unfavorable.
D. $45,000 favorable.
E. $17,000 unfavorable.
Q:
The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance is: Actual hours used .
45,000 Actual rate per hour ..
$15 Standard rate per hour ..
$14 Standard hours for units produced ...................
47,000 A. $28,000 unfavorable.
B. $28,000 favorable.
C. $45,000 unfavorable.
D. $45,000 favorable.
E. $17,000 unfavorable.
Q:
The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50 per pound. In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound. What is the total direct materials cost variance?
A. $48,000 unfavorable.
B. $51,000 favorable.
C. $51,000 unfavorable.
D. $ 3,000 favorable.
E. $ 3,000 unfavorable.
Q:
A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. What is the total labor cost variance?
A. $2,000 unfavorable.
B. $3,000 unfavorable.
C. $6,000 unfavorable.
D. $8,000 unfavorable.
E. $9,000 unfavorable.
Q:
A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A. The company has just produced 1,000 units of this product, using 5,200 pounds of Material M that cost $9,880.The direct materials price variance is:
A. $520 unfavorable.
B. $400 unfavorable.
C. $120 favorable.
D. $520 favorable.
E. $400 favorable.
Q:
A company has established 5 pounds of Material M at $2 per pound as the standard for the material in its Product A. The company has just produced 1,000 units of this product, using 5,200 pounds of Material M that cost $9,880. The direct materials quantity variance is:
A. $400 unfavorable.
B. $120 favorable.
C. $400 favorable.
D. $520 favorable.
E. $520 unfavorable.
Q:
Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials price variance?
A. $ 400 unfavorable.
B. $ 450 unfavorable.
C. $2,500 unfavorable.
D. $2,550 unfavorable.
E. $2,950 unfavorable.
Q:
Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units. What is the direct materials quantity variance?
A. $ 400 unfavorable.
B. $ 450 unfavorable.
C. $2,500 unfavorable.
D. $2,550 unfavorable.
E. $2,950 unfavorable.
Q:
The following company information is available. The direct materials quantity variance is: Direct materials used for production .
36,000 gallons Standard quantity for units produced
34,400 gallons Standard cost per gallon of direct material ...
$6.00 Actual cost per gallon of direct material ...
$6.10 A. $10,000 unfavorable.
B. $13,200 unfavorable.
C. $ 9,600 unfavorable.
D. $10,000 favorable.
E. $13,200 favorable.
Q:
The following company information is available for January. The direct materials price variance is: Direct materials used
2,500 feet @ $55 per foot Standard costs for direct materials for January production
2,600 feet @ $53 per foot A. $5,000 favorable.
B. $ 300 favorable.
C. $5,200 unfavorable.
D. $5,000 unfavorable.
E. $5,200 favorable.
Q:
Q:
Bartels Corp. produces woodcarvings. It takes 2 hours of direct labor to produce a carving. Bartels' standard labor cost is $12 per hour. During August, Bartels produced 10,000 carvings and used 21,040 hours of direct labor at a total cost of $250,376. What is Bartels' labor rate variance for August?
A. $2,000 favorable.
B. $2,104 unfavorable.
C. $2,104 favorable.
D. $4,160 favorable.
E. $2,000 unfavorable.
Q:
Kyle, Inc. has collected the following data on one of its products. The direct materials price variance is: Direct materials standard (4 lbs. @ $1/lb.)
$4 per finished unit Total direct materials cost varianceunfavorable
$13,750 Actual direct materials used
150,000 lbs. Actual finished units produced
30,000 units A. $13,750 unfavorable.
B. $16,250 unfavorable.
C. $16,250 favorable.
D. $30,000 unfavorable.
E. $33,000 favorable.
Q:
Kyle, Inc. has collected the following data on one of its products. The direct materials quantity variance is: Direct materials standard (4 lbs. @ $1/lb.)
$4 per finished unit Total direct materials cost varianceunfavorable
$13,750 Actual direct materials used
150,000 lbs. Actual finished units produced
30,000 units A. $30,000 favorable.
B. $13,750 unfavorable.
C. $16,250 favorable.
D. $30,000 unfavorable.
E. $13,750 favorable.
Q:
Kyle, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is: Direct materials standard (4 lbs. @ $1/lb.)
$4 per finished unit Total direct materials cost varianceunfavorable
$13,750 Actual direct materials used
150,000 lbs. Actual finished units produced
30,000 units A. $133,750.
B. $150,000.
C. $106,250.
D. $158,750.
E. $120,000.
Q:
Which department is often responsible for the direct materials price variance?
A. The accounting department.
B. The production department.
C. The purchasing department.
D. The finance department.
E. The budgeting department.
Q:
Based on a predicted level of production and sales of 12,000 units, a company anticipates reporting operating income of $26,000 after deducting variable costs of $72,000 and fixed costs of $10,000.
Based on this information, the budgeted amounts of fixed and variable costs for 15,000 units would be:
A. $10,000 of fixed costs and $72,000 of variable costs.
B. $10,000 of fixed costs and $90,000 of variable costs.
C. $12,500 of fixed costs and $90,000 of variable costs.
D. $12,500 of fixed costs and $72,000 of variable costs.
E. $10,000 of fixed costs and $81,000 of variable costs.
Q:
A company's flexible budget for 10,000 units of production reflects sales of $200,000; variable costs of $40,000; and fixed costs of $75,000. Calculate the expected level of operating income if the company produces and sells 13,000 units.
A. $110,500.
B. $85,000.
C. $133,000.
D. $100,000.
E. $50,500.
Q:
Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the budgeted operating income from Product A?
A. $12,500.
B. $25,000.
C. $20,000.
D. $30,000.
E. $35,000.
Q:
Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and $123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units are:
A. $125,000 fixed and $102,500 variable.
B. $125,000 fixed and $123,000 variable.
C. $102,500 fixed and $150,000 variable.
D. $150,000 fixed and $123,000 variable.
E. $150,000 fixed and $102,500 variable.
Q:
A flexible budget is prepared:
A. Before the operating period only.
B. After the operating period only.
C. During the operating period only.
D. At any time in the planning period.
E. A flexible budget should never be prepared.
Q:
An internal report that helps management analyze the difference between actual performance and budgeted performance based on the actual sales volume (or other level of activity), and which presents the differences between actual and budgeted amounts as variances, is called a(n):
A. Sales budget performance report.
B. Flexible budget performance report.
C. Master budget performance report.
D. Static budget performance report.
E. Operating budget performance report.
Q:
Sales variance analysis is useful for:
A. Planning purposes only.
B. Budgeting purposes only.
C. Control purposes only.
D. Planning and control purposes.
E. Planning and budgeting purposes.
Q:
A flexible budget performance report compares the differences between:
A. Actual performance and budgeted performance based on actual sales volume.
B. Actual performance over several periods.
C. Budgeted performance over several periods.
D. Actual performance and budgeted performance based on budgeted sales volume.
E. Actual performance and standard costs at the budgeted sales volume.
Q:
Identify the situation that will result in a favorable variance.
A. Actual revenue is higher than budgeted revenue.
B. Actual revenue is lower than budgeted revenue.
C. Actual income is lower than expected.
D. Actual costs are higher than budgeted costs.
E. Actual expenses are higher than budgeted expenses.
Q:
Variable budget is another name for:
A. Cash budget.
B. Flexible budget.
C. Fixed budget.
D. Manufacturing budget.
E. Rolling budget.
Q:
Static budget is another name for:
A. Standard budget.
B. Flexible budget.
C. Variable budget.
D. Fixed budget.
E. Master budget.
Q:
A report based on predicted amounts of revenues and expenses corresponding to the actual level of output is called a:
A. Rolling budget.
B. Production budget.
C. Flexible budget.
D. Merchandise purchases budget.
E. Fixed budget.
Q:
A planning budget based on a single predicted amount of sales or production volume is called a:
A. Sales budget.
B. Standard budget.
C. Flexible budget.
D. Fixed budget.
E. Variable budget.
Q:
An analytical technique used by management to focus on the most significant variances and give less attention to the areas where performance is satisfactory is known as:
A. Controllable management.
B. Management by variance.
C. Performance management.
D. Management by objectives.
E. Management by exception.
Q:
A company provided the following direct materials cost information. Compute the cost variance. Standard costs assigned: Direct materials standard cost (405,000 units @ $2/unit
$810,000 Actual costs Direct Materials costs incurred (403,750 units @ $2.20/unit)
$888,250 A. $2,500 Favorable.
B. $78,250 Favorable
C. $78,250 Unfavorable
D. $80,750 Favorable.
E. $80,750 Unfavorable.
Q:
Standard costs are used in the calculation of:
A. Price and quantity variances.
B. Price variances only.
C. Quantity variances only.
D. Price, quantity, and sales variances.
E. Quantity and sales variances.
Q:
A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called:
A. Cost analysis.
B. Flexible budgeting.
C. Variable analysis.
D. Cost variable analysis.
E. Variance analysis.
Q:
The difference between the actual cost incurred and the standard cost is called the:
A. Flexible variance.
B. Price variance.
C. Cost variance.
D. Controllable variance.
E. Volume variance.
Q:
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the:
A. Controllable variance.
B. Standard variance.
C. Budget variance.
D. Quantity variance.
E. Price variance.
Q:
The difference between actual and standard cost caused by the difference between the actual price and the standard price is called the:
A. Standard variance.
B. Quantity variance.
C. Volume variance.
D. Controllable variance.
E. Price variance.
Q:
The costs that should be incurred under normal conditions to produce a specific product or component or to perform a specific service are:
A. Variable costs.
B. Fixed costs.
C. Standard costs.
D. Product costs.
E. Period costs.
Q:
Standard costs are:
A. Actual costs incurred to produce a specific product or perform a service.
B. Preset costs for delivering a product or service under normal conditions.
C. Established by the IMA.
D. Rarely achieved.
E. Uniform among companies within an industry.
Q:
If cost variances are material, they should always be closed directly to Cost of Goods Sold.
Q:
A volume variance is the difference between overhead at maximum production volume and that at the budgeted production volume.
Q:
An overhead cost variance is the difference between the actual overhead incurred for the period and the standard overhead applied.
Q:
One possible explanation for direct labor rate and efficiency variances is the use of workers with different skill levels.
Q:
A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company purchased inferior materials.
Q:
When the actual cost of direct materials used exceeds the standard cost, the company must have experienced an unfavorable direct materials price variance.
Q:
A direct labor cost variance may be broken down into a controllable variance and a volume variance.
Q:
The purchasing department is often responsible for the price paid for materials that may create a direct materials price variance.
Q:
A flexible budget expresses variable costs on a per unit basis and fixed costs on a total basis.
Q:
Although a fixed budget is only useful over the relevant range of operations, a flexible budget is useful over all possible production levels.
Q:
Sales variances may be computed in a manner similar to cost variancesthat is, computing both price and volume variances.
Q:
Sales variances allow managers to focus on sales mix as well as sales quantities.
Q:
A fixed budget performance report never provides useful information for evaluating variances.
Q:
A variable or flexible budget is so named because it only focuses on variable costs.
Q:
The ______________________________ shows the budgeted costs for direct materials, direct labor, and overhead, based on the budgeted production volume from the production budget.
Q:
The ___________ shows expected cash inflows and outflows during the budget period.
Q:
The budget that lists the dollar amounts to be both received from plant asset disposals and spent to purchase additional plant assets to carry out the budgeted business activities is the __________________________.
Q:
___________________________ is a budget system based on expected activities and their levels that enables management to plan for resources required to perform the activities.
Q:
The master budget process nearly always begins with the preparation of the ___________________ and usually finishes with the preparation of the ______________________, the ________________, and the ______________________.
Q:
A ________________________ is a continuously revised budget that adds future months or quarters to replace months or quarters that have lapsed.
Q:
There are at least five benefits from budgeting. Identify two of these benefits:
(1) _______________________________________
(2) _______________________________________
Q:
Use the following information to prepare a budgeted balance sheet Magee Company for the month of June.
a. The budgeted net income for the month of June is $236,000.
b. The beginning cash balance is $62,000; budgeted cash receipts are $1,660,000; budgeted cash disbursements are $1,580,000.
c. Budgeted sales for May and June are $1,600,000 and $1,700,000 respectively. Collections are 40% in the month of sale and 60 % in the month following.
d. The projected inventory balance is 10% of the following months sales. Sales for July are projected to be $1,750,000.
e. Purchases of inventory are paid 80% in the month of purchase, and 20% in the month following. Budgeted purchases for June are $900,000.
f. The equipment account balance is $1,400,000 on June 30. On May 31, the accumulated depreciation on equipment is $276,000. Depreciation expense for June is estimated to be $24,000.
g. There is an outstanding loan balance of $800,000.
h. Accrued income taxes payable for June 30 are $71,000; and accrued salaries payable are $50,000.
i. The only other balance sheet accounts are: Common Stock, with a balance of $800,000 on May 31, and Retained Earnings with a balance of $300,000 on May 31.
Q:
Use the following information to prepare a budgeted income statement for Arbor Company for the month of June.
a. Beginning cash balance on June 1 is $52,000.
b. Cash receipts from sales: 40% is collected in the month of sale, 50% in the next month, and 10% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.
c. Payments on merchandise purchases: 80% in the month of purchase and 20% in the month following purchase. Purchases amounts are May (actual), $830,000; and June (budgeted), $867,000.
d. Budgeted cash disbursements for salaries in June: $260,000. Salaries payable on May 31 are $60,000 and are expected to be $50,000 on June 30.
e. Budgeted depreciation expense for June: $24,000.
f. Other cash expenses budgeted for June: $282,000.
g. Accrued income taxes due in June: $48,000.
h. Bank loan interest due in June: $8,000 which represents the 1% monthly expense on a bank loan of $800,000.
i. Loan payment of $50,000 if the preliminary cash balance is greater than $100,000.
j. Cost of goods sold is 53% of sales.
k. The income tax rate applicable to the company is 30%.
Q:
Use the following information to prepare the June cash budget for Arbor Company. It should show expected cash receipts and cash disbursement for the month and the cash balance expected on June 30.
a. Beginning cash balance on June 1 is $52,000.
b. Cash receipts from sales: 40% is collected in the month of sale, 50% in the next month, and 10% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: April (actual), $1,450,000, May (actual), $1,600,000, and June (budgeted), $1,700,000.
c. Payments on merchandise purchases: 80% in the month of purchase and 20% in the month following purchase. Purchases amounts are May (actual), $830,000; and June (budgeted), $867,000.
d. Budgeted cash disbursements for salaries in June: $260,000.
e. Budgeted depreciation expense for June: $24,000.
f. Other cash expenses budgeted for June: $282,000.
g. Accrued income taxes due in June: $48,000.
h. Bank loan interest due in June: $8,000.
i. Loan payment of $50,000 if the preliminary cash balance is greater than $100,000.
Q:
Clic, Inc., provides the following data for the next four months: April
May
June
July Units Sales
500
580
530
600 Ending Raw Materials Inventory .
663 lbs. Ending Finished Goods Inventory ...
174 Units Desired Ending Inventory:
Raw Materials = 30% of next month's production needs
Finished Goods = 20% of next month's sales
Pounds of raw material required for each finished Unit = 5 lbs. Required:
Calculate the amount of purchases of raw materials in pounds for April and May.
Q:
David, Inc., is preparing its master budget for the second quarter. The following sales and production data have been forecasted: April
May
June
July
August Unit sales
400
500
520
480
540 Finished goods inventory on March 31: 120 units
Raw materials inventory on March 31: 450 pounds Desired ending inventory each month:
Finished goods: 30% of next month's sales
Raw materials: 25% of next month's production needs
Number of pounds of raw material required per finished unit: 4 lb. How many pounds of raw materials should be purchased in April?
Q:
The production budget for Sergei Company revealed the following production volume for the months of July September. Each unit produced requires 2 hours of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for Sergei Company for July September. July
Aug
Sept Units to be produced
620
680
540
Q:
Peru, Inc. is preparing its master budget for the first quarter of its calendar year. The following forecasted data relate to the first quarter: Unit sales: January ..
40,000 February
60,000 March
50,000 Unit sales price .
$25 Cost of goods sold per unit ...
$14 Expenses: Commissions
10% of sales Rent ..
$20,000/month Advertising ..
15% of sales Office salaries ..
$75,000/month Depreciation .
$50,000/month Interest ..
15% annually on a $250,000 note payable Tax rate
40% Prepare a budgeted income statement for this first quarter.
Q:
Sweeny Co. is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted: April May Sales .
$150,000 $157,500 Merchandise purchases
107,000 112,400 Operating expenses: Payroll .
13,600 14,280 Advertising .
5,400 5,700 Rent .
1,500 1,500 Depreciation
7,500 7,500 End of April balances: Cash .
40,000 Bank loan payable
16,000 Additional data:
(1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000.
(2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month.
(3) Operating expenses are paid in the month they are incurred.
(4) A minimum cash balance of $40,000 is required at the end of each month.
(5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available. Prepare the company's cash budget for May. Show the ending loan balance at May 31.
Q:
Del Carpio, Inc., sells two products, Widgets and Gadgets. The sales forecast in units for the first quarter of the coming year is: Widgets
Gadgets January..
20,000
36,000 February
28,000
60,000 March
36,000
64,000 Cash sales are 30% of each product's monthly sales. The remaining sales are credit sales which are collected as follows: 70% in the month of sale, 20% the next month, and 10% in the following month. Unit sale prices are $30 and $20 for Widgets and Gadgets, respectively. Determine the company's cash receipts for March from its current and past sales.
Q:
The following information is available for Hammel Company:
a. The Cash Budget for March shows a bank loan of $10,000 and an ending cash balance of $48,000.
b. The Sales Budget for March indicates sales of $120,000. Accounts receivable is expected to be 70% of the current-month sales.
c. The Merchandise Purchases Budget indicates that $90,000 in merchandise will be purchased in March on account and ending inventory for March is predicted to be 600 units @ $35. Purchases on account are paid 100% in the month following the purchase.
d. The Budgeted Income Statement shows a net income of $48,000 and $26,000 in income tax expense for the quarter ended March 31. Accrued taxes will be paid in April.
e. The Balance Sheet for February shows equipment of $84,000 with accumulated depreciation of $30,000, common stock of $25,000 and ending retained earnings of $8,000. There are no changes budgeted in the equipment or common stock accounts. Prepare a budgeted balance sheet for March.
Q:
Slim Corp. requires a minimum $8,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Loans are repaid at month's end from any excess cash. The cash balance on July 1 is $8,400. Cash receipts other than for loans received for July, August, and September are forecasted as $24,000, $32,000, and $40,000, respectively. Payments other than for loan or interest payments for the same period are planned at $28,000, $30,000, and $32,000, respectively at July 1, there are no outstanding loans. Required:
Prepare a cash budget for July, August, and September.
Q:
Use the following data to determine the company's cash disbursements for each month of August and September:
Q:
Rich Company's experience shows that 20% of its sales are for cash and 80% are on credit. An analysis of credit sales shows that 50% are collected in the month following the sale, 45% are collected in the second month, and 5% prove to be uncollectible. Calculate August
September
October
November Sales ..
$500,000
$525,000
$535,000
$560,000 October November (1)
Receipts from cash sales ...
(1) (6) (2)
Collections from August credit sales
(2) (7) (3)
Collections from September credit sales
(3) (8) (4)
Collections from October credit sales ...
(4) (9) (5)
Total cash collections during the month
(5) (10)
Q:
Airtex Company budgeted the following credit sales during the current year: September, $90,000; October, $123,000; November, $105,000; December, $111,000. Experience has shown that cash from credit sales is received as follows: 10% in the month of sale, 50% in the first month after sale, 35% in the second month after sale, and 5% is uncollectible. How much cash should Airtex Company expect to collect in November from all current and past credit sales?