7:34 PM Sat Apr 13 Collage 6 + T + photocollage.com Auto collage Template TRUIFCCLIQUOI JVE por favor TIVUT Current Attempt in Progress Direct Labor Waterways Corporation is preparing its budget for the coming year, 2022. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process. Sales Unit sales for November 2021 112,000 Unit sales for December 2021 103,000 Expected unit sales for January 2022 Expected unit sales for February 2022 Expected unit sales for March 2022 114,000 113,000 116,000 Expected unit sales for April 2022 Expected unit sales for May 2022 124,000 138,000 Unit selling price $12 Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2021, totaled $185,400. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit. Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2021 totaled 11,390 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2021, totaled $120,595. Direct Labor Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Labor requires 12 minutes per unit for completion and is paid at a rate of $9 per hour. Manufacturing Overhead Indirect materials 30 per labor hour Indirect labor 50 per labor hour Utilities 50 per labor hour Maintenance 30 per labor hour Salaries $43,000 per month Depreciation $16,600 per month Property taxes $2,700 per month Insurance $1,300 per month Maintenance $1,200 per month Selling and Administrative Variable selling and administrative cost per unit is $1.50. Advertising Insurance Salaries Depreciation Other fixed costs $14,000 a month $1,400 a month $72,000 a month $2,600 a month $3,000 a month Utilities 50 per labor hour Maintenance 30 per labor hour Salaries $43,000 per month Depreciation Property taxes $16,600 $2,700 per month per month Insurance Maintenance $1,300 $1,200 per month per month Selling and Administrative Variable selling and administrative cost per unit is $1.50. Advertising Insurance Salaries Depreciation Other fixed costs $14,000 a month. $1,400 a month $72,000 a month $2.600 a month $3,000 a month Other Information The Cash balance on December 31, 2021, totaled $103,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2022. Dividends are paid each month at the rate of $2.40 per share for 4,540 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $460,000 equipment purchase is planned for February. For the first quarter of 2022, prepare a manufacturing overhead budget. (Round overhead rate to 2 decimal places, e.g. 5.25 and all other answers to 0 decimal places, e.g. 2,520. List Variable Costs first.) WATERWAYS CORPORATION Manufacturing Overhead Budget For the First Quarter of 2022 Predetermined overhead rate for the quarter Indirect Materials Indirect Labor Utilities Maintenance January First Quarter February $ 6840 $ 6852 $ 11400 11420 9120 9136 6840 6852 Total Variable Costs 34200 $ 34260 $ Fixed Costs Salaries 41000 41000 Depreciation 18500 18500 Property Taxes 2900 2900 Insurance Insurance Maintenance 1200 1200 1400 1200 1200 1400 6840 $ 6852 $ 7020 $ 20712 11400 11420 11700 34520 9120 9136 9360 27616 6840 6852 7020 20712 $ 34200 $ 34260 $ 35100 $ 103560 41000 41000 41000 123000 18500 18500 18500 55500 2900 2900 2900 8700 1200 1200 1200 3600 1400 1400 1400 4200 65000 $ 65000 $ 65000 $ 195000 99200 $ 99260 $ 100100 $ 298560 Total Fixed Costs $ 65000 $ 65000 $ 22800 22840 23400 69040 Total Manufacturing Overhead $ 99200 $ 99260 $ Direct Labor Hours Predetermined overhead rate for the quarter 22800 22840 $ 4.32 O 3 40% X