A manufacturing company produces 6000 mobile phones to the market. Their presenting following budgeted overheads for 

Department

Budgeted overheads ()

Overhead absorption base

Assembling

24000

3000 Labor hours

Programing

65000

3000 Labor hours

Machining

60000

5000 Machine hours

packing

85000

1000 Labor hours

They are paying 40% on the selling and administration cost based on the factory cost

For the material company spend 6000

Labor hours

600hrs of Assemble 6.00 per hour

800hrs of Programing 7.25 per hour

100hrs of machining 3.75 per hour

150hrs of packing 6.50 per hour

800 paid as testing cost of the phone. Company booked 1000 Program Hours and 200 machine Hours in the production facility for the manufacturing process.

Calculate the total cost of the batch and the unit cost

If there is a selling price of 70 what is the profit/ loss per unit and what is the total profit/ loss of the production

Q4 An Eagle corporation is a company that sells computer software to financial corporations.

They are selling computer software to the buyers on credit sales base.

For the upcoming months expected sales as follows:

October $ 100,300 / November $ 120,500 / December $ 115,000

Company given the credit term to buyers as follows

45% as the final settlement, 33% as the 2nd payment and 20% on the day buyers purchase items form the company

When company buys materials from the suppliers, they agree to give 2 months credit term to the company. Purchase of the company as follows:

October $ 40,000 / November $ 65,000 / December $ 45,000

Expected opening balance for October 1st is $ 90,000

Following information is given:

Debt of August $ 140,500 / September $ 112,000

Purchase of July $ 51,000 / August $ 60,000 / September $ 55,000

6.5% of sales receipt pay as income tax every month

Company expect to take loan of $75,000 in month of October and plan to pay equal amount in 3 months to cover the loan with the interest of 13% for the value remain for each period

Wages has been considered as a variable cost of the company and pay 12% of sales receipt after tax reduction

Over heads estimated as a $ 30,500 for every month and 4% of the overheads consider as a depreciation expense

During the month of October company allocate $ 15,000 for the petty cash for cash payments they have to do and each and every month they increase that amount by 2%

Prepare the cash budget for October / November and December for the Eagle Corporation and provide the necessary calculations done on the receipts and payments.