1. Speedy Runner makes running shoes and they are anticipating the incurrence of the following manufacturing overhead costs during the upcoming year:

Cost Indirect materials $4,000

Indirect Labor $70,000

Utilities $42,000

Insurance $7,000

Taxes $8,000

Depreciation on equipment $20,000

What will Speedy Runner budget for cash disbursements related to manufacturing overhead?

A. $74,000

B. $131,000

C. $111,000

D. $151,000

2. Lough Company prepared the following purchases budget:

Month	Budgeted Purchases
June	$36,000
July	$49,000
August	$39,400
September	$50,000
October	$48,500

All purchases are paid for as follows: 5% two months after purchase, 35% in the following month, and 60% in the month of purchase.

What are the cash disbursements in October to account for the September purchases at Lough Company?

A.$50,000

B.$2,500

C.$17,500

D.$1,800

3. Distribution Corporation collects 35% of a month's sales in the month of sale, 45% in the month following sale, and 20% in the second month following sale. Budgeted sales for the upcoming four months are:

April budgeted sales	$120,000
May budgeted sales	$150,000
June budgeted sales	$230,000
July budgeted sales	$170,000

The amount of cash that will be collected in July is budgeted to be

A.$133,500

B.$190,000

C.$193,000

D.$59,500