10.Assume a companys direct labor budget for July estimates 10,000 labor-hours to meet the months production requirements. The variable manufacturing overhead rate used for budgeting purposes is $2.75 per direct labor-hour. The budgeted fixed manufacturing overhead for July is $60,000 including $5,000 of depreciation. What is the amount of budgeted cash disbursements for manufacturing overhead for July?

Multiple Choice

• $92,500

• $90,500

• $82,500

• $88,500

11.

Assume a merchandising company provides the following information from its master budget for the month of May:

Cash balance, May 1	$ 20,000
Cash collections from customers	$ 80,000
Cash disbursements for merchandise purchases	$ 35,000
Cash disbursements for selling and administrative expenses	$ 40,000

If the company wishes to maintain a minimum cash balance of $30,000 at the end of every month, then its borrowings at the beginning of May will equal?

Multiple Choice

• $5,000

• $0

• $25,000

• $20,000