A.)

The manufacturing overhead budget at Latronica Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,200 direct labor-hours will be required in August. The variable overhead rate is $8.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $134,640 per month, which includes depreciation of $24,880. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for August should be:

$18.70

$24.10

$27.60

$8.90

B/)

Vandel Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,100 units are planned to be sold in April. The variable selling and administrative expense is $4.60 per unit. The budgeted fixed selling and administrative expense is $35,710 per month, which includes depreciation of $3,600 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expense on the April selling and administrative expense budget should be:

45,370

41,770

32,110

9,660

C.)

Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $19,000. Budgeted cash receipts total $191,000 and budgeted cash disbursements total $190,000. The desired ending cash balance is $34,000. The excess (deficiency) of cash available over disbursements for June will be:

$20,000

$210,000

$18,000

$1,000