Mammoth Manufacturing Company set its production budget at 180,000 units per month during the second quarter of the year (assuming 45,000 units per week and four weeks per month). It developed all manufacturing cost budgets from this production budget. The following factory overhead budget for April applies to May and June as well.

Mammoth Manufacturing Company Factory Overhead Budget April Budgeted production 180,000 units Variable overhead costs: : Utilities $ 10,800 Supplies 6,300°

Maintenance 5,400°

Materials handling 11,700°

Other variable costs * 14,400°

Total variable overhead $ 48,600 Fixed overhead costs:

Supervisory salaries $ 26,000°

Depreciation of plant and equipment 35,000 Insurance and property taxes on plant and equipment 14,000¢

Other fixed costs 25,000°

Total fixed overhead $100,000 Total factory overhead $148,600 Paid in the following month Paid in same month

‘Insurance was prepaid; taxes are paid in December.

Utility costs incurred in March were $10,800. The factory may have to close down during the last week in May because of some difficulty the company is having with the renegotiation of a labor contract. If this happens, production in May will fall to 135,000 units.

This lost production will have to be made up in June for the company to avoid losing sales. Mammoth is concerned about the effects that closing the factory down the first week in May will have on its cash budget .

Required: On one schedule, prepare monthly factory overhead budgets (adjusting them where necessary for the effect of the one-week closing of the factory) for April, May, and June. Include the estimated monthly cash payments for factory overhead costs.