23. Marquay Company has prepared the following budget for June:

Unit sales, selling price per unit, variable cost per unit, total fixed costs, and all inventories are anticipated to remain constant each month. Unit sales were in 32,000 in May.
The cash balance at the beginning of June is $950,000. Marquay collects 80% of revenues in the month of sale and 20% in the following month. Materials costs are paid in the month following purchase, and all other costs are paid for as incurred. Marquay is hoping to reduce overhead costs in the future by 2% each month.

a. Prepare a cash budget for June.

b. Prepare a flexible budget for June for sales levels 10% and 20% above and below expectations.

c. Prepare a Kaizen budget for overhead for June through November.

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Sales revenue (for 33,000 units) $7,029,000 Cost of goods sold Direct materials used $1,617,000 Direct labor 1,254,000 Variable factory overhead 990,000 Fixed factory overhead 735,000 4,596,000 Gross margin $2,433,000 Operating expenses Variable $1,122,000 Fixed Operating income 728,000 1,850,000 $ 583,000