1.S&A budget including cash disbursements for S&A

1. Outdoor Chef Grill Company budgeted the following costs for anticipated production in October. The list below includes fixed MOH expenses and Fixed S&A expenses

Advertising Expenses $24,000

Sales monthly salary (not commission) $7,500

Factory Insurance $5,000

Production Supervisor Salary $4,900

Executive officer salaries $25,000

Indirect Labor Salaries for Quality Control $2,800

Factory Depreciation $4,000

Corporate Office Building Depreciation, $3,000

Total estimated VMOH expenses are $41,000 for the month of October. VMOH expenses are allocated to the products based on a single PDOR rate using the allocation base, Direct Material Cost.

FMOH is assigned to the products based on DL hours.

Note: You will have two PDOR’s for this assignment.

Variable S&A expenses are allocated at rate of $3 per grill.

2. Other Information:
   1. Income Tax Rate is 35%
   2. Minimum Cash Balance $500,000
   3. Beginning Cash Balance $750,000