1 Prepare a direct labour budget for the next 12 months (From July 2017 to June 2018) showing the direct labour hours needed for production and the direct labour cost for each month.

2 Prepare the Total manufacturing overhead budget for the next year, showing the monthly cash payments for manufacturing overheads.

3. Calculate the predetermined overhead rate for manufacturing overheads.

4 Calculate the manufacturing cost of ending inventory as at the end of the year. (June 2018)

5 Prepare the Total Selling and administrative expenses budget for the next year (From July 2017 to June 2018). Show the amount paid in cash for selling and administrative expenses each month.

Frosty Desserts Ltd is a producer and a wholesaler of fruit flavored frozen desserts and the company has experienced several years of steady growth in sales. The company's most popular product is their 'Raspberry Frangipani Tart'. Jess Wakefield, Frosty Dessert's marketing manager, has recently completed the sales forecast of the 'Raspberry Frangipani tart' for the next 15 months and it is displayed in the following table: Sales forecast: Month Sales (Units) June 2017 July 2017 30,000 35,000 August 2017 20,000 September 2017 45,000 October 2017 50,000 November 2017 40,000 December 2017 25,000 January 2018 20,000 February 2018 March 2018 April 2018 May 2018 25,000 15,000 20,000 30,000 June 2018 20,000 July 2018 30,000 August 2018 25,000 In May, Todd Martine, the company's management accountant, compiled the following data for the upcoming annual budget: _Selling price per unit of a Raspberry Frangipani tart is $15.00. _All sales are on credit and the company's collection pattern is as follows: - _70% collected in the month of sale, and - _30% collected in the month following sale. _The company aims to maintain finished goods of 15% of the following month's budgeted sales as the ending inventory. _Raw materials required to produce one Raspberry frangipani tart is 2 kilograms. And the raw materials cost is $4.00 per kilogram. _The company plans to maintain an ending inventory amount of 10% of the following month's material requirement. _All the purchases are done on credit and the company policy on payment for purchases is as follows: - 40% paid in the month of purchase - 60% paid in the month following the purchase. Purchases in May 2017 are; $234,000. Direct labour requirement for production of a tart is 0.08hours per unit, and the direct labour cost is paid $25 per hour. Manufacturing overhead is applied to units on the basis of direct labour hours. Fixed manufacturing overhead amounts to $61,000 per month. The remainder of the manufacturing overhead is variable and it is $12 per direct labour hour. Included in the fixed manufacturing overhead is $25,000 of equipment depreciation. Monthly fixed selling and administrative expenses are $51,000 and there is a non- cash amount of $8,000 included in it. The variable selling and administrative overhead is $0.60 per unit and it varies with the number of units sold. Cash balance as at 1st June is $58,000. And the company aims to maintain a minimum cash balance of $32,000 at the end of each month. The company policy is to maintain a 14% open line of credit for $50,000 (if required) .The Company borrows on the first day of the month and repays loans on the last of the month. In August and November, the company aims to replace some of their old fixed assets with new ones that will cost $65,000 and $30,000 respectively. They will be paid for in cash. Cash dividend to be paid in December 2017 is $20,000