(a) Prepare a manufacturing overhead budget. (Round intermediate amounts to the nearest dollar.) This is similar to Illustration 22-12 of your textbook. (b) Prepare a selling and administrative budget. This is similar to Illustration 22-13 of your textbook. (c) Prepare a budgeted income statement. (Round intermediate calculations to the nearest dollar.) This is similar to Illustration 22-15 of your textbook. (d) Prepare a cash budget. This is similar to Illustration 22-19 of your textbook. Serious Business, Inc. The company is preparing its budget for the coming year, 2020. The first step is to plan for the FIRST QUARTER of that coming year. The following information has been gathered from their managers. Sales Information Period Units November 103,000 Actual December 92,000 Actual January 101,000 Planned February 102,000 Planned March 104,000 Planned April 113,000 Planned May 124,000 Planned Unit selling price 11.00 Finished Goods Inventory Planning The company likes to keep 10% of the next month's unit sales in finished goods ending inventory. 100% Accounts Receivable & Collections Sales on Account Collections Activity Month of Sale Month after Sale Balance at 12/31/19 80% 20% 185,000.00 Materials Inventory Costs & Planning Direct Materials Amount Used per Unit Cost Metal $ 1 lb 1.00 b The company likes to keep 5% of the material needed for the next month's production in raw materials ending inventory. 100% Accounts Payable & Disbursements Purchases on Account Payment Activity Month of Purchase Month after Purchase Balance at 12/31/19 120,000 40% 60% Direct Labor & Costs Time per Unit Production minutes Pay Rate/Hour 6.00 Manufacturing Overhead Costs Variable costs per direct labor hour Indirect materials 0.25 Indirect labor 0.40 Utilities 0.45 Maintenance 0.25 Fixed costs per month Salaries 42,000 Depreciation 16,800 Property taxes 2,675 Insurance 1,200 Janitorial 1,300 Selling and Administrative Costs $ Variable costs per unit sold 1.30 Fixed costs per month Advertising 15,000 Insurance 14,000 Salaries 72,000 Depreciation 25,000 Other fixed costs 3,000 Income Taxes 45% 45% rounded to nearest dollar Accrued on Monthly Net Income Amounts Accrued Q4 2019, paid January 2020 200,000 Cash and Financing Matters Cash Balance, 12/31/2019 82,000 2020 Minimum Balance Required 648,000 per Monthly Dividends 2.00 share Outstanding Shares 5,000 Line of Credit Limit None Borrowing Increment Required 1,000 Interest Rate 7% Draws First of Month Repayments Last of Month Interest accumulates to the loan balance and is paid in full with each repayment. Additional Item Fixed Asset Purchase 405,000 February Month