am having difficulty making a Cash Budget , indentfying one casue of Direct labor, Materials and MOH Variance for the product.

and to Determine the cash payback period. I am really confused with all the charts and numbers honestly. It just tough to get a exact number for the Cash Budget.

Thus is additional Info on the problem. Im pretty confused.I really am thankful for whoever helps me.

Product costs Item Direct Material Direct Labor Manufacturing overhead Period cost Administrative salaries $15,500 Advertising for helmets $11,000 Depreciation on factory building $1,500 $800 Depreciation on office equipment Insurance on factory building $1,500 $1,000 Miscellaneous expenses- factory Office supplies expense $300 Professional fees $500 $400 Property taxes on factory building Raw materials used $70,000 Rent on production equipment $6,000 Research and development $10,000 Sales commissions $40,000 Particulars Amount Amount Amount Beginning Work in process 50 Direct materials Beginning Raw materials inventory $0 $70,000 so Raw materials purchased Less: Ending Raw materials inventory Direct materials used (A) Direct labor (B) $70,000 $70,000 Manufacturing overhead $6,000 $1,500 $1,500 $900 Rent on production equipment Insurance on factory building Depreciation on factory building Utility costs-factory Property taxes on factory building Miscellaneous expenses -- factory Total Manufacturing overhead (C) Total manufacturing costs (A+B+C) $400 $1,000 $11,300 $1,51,300 $1,51,300 Total cost of work in process Less: Ending Work in process Cost of goods manufactured $1,51,300 e. Production cost per helmet Cost of goods manufactured / Number of helmets produced = $151,300 (as calculated above) / 10,000 = $15.13 The company would likely be using process costing system. Process costing is used when goods are produced in large quantities and the goods produced are same. It is useful as it can help in calculating the cost per batch of helmets. 9. In process costing system all the manufacturing costs will be collected and assigned to the total units manufactured Item Variable Costs Fixed Costs Total Costs Administrative salaries $15,500 Advertising for helmets $11,000 Depreciation on factory building $15,500 $11,000 $1,500 $a00 $1,500 $1,500 5800 $1,500 Depreciation on office equipment Insurance on factory building Miscellaneous expenses -- factory Office supplies expense $1,000 $1,000 $300 $300 Professional fees $500 $500 $400 Property taxes on factory building $400 $70,000 $70,000 Raw materials used Rent on production equipment $6,000 $6,000 1. Contribution margin per unit = Unit selling price - Unit variable costs = $40.00 - $18.10 = $21.90 Contribution margin ratio = Contribution margin per unit/Unit selling price = $21.90 / $40.00 = 54.75% k. For break-even point in dollars, contribution from break even units sold is equal to the fixed costs. Let the amount of sales be S x. Thus, x* 54.75% = $48,400 x = $48.400 / 54.75% x = $88,402 Break even point in sales dollars = $88,402 At break even point, contribution from break even units is equal to the fixed costs. Let number of units be x. ** $21.90 = $48,400 x = $48,400 / $21.90 x = 2,210 helmets Break even point is units = 2,210 helmets 10) Sales Budget Expected unit sales 8000 Unit selling price $40 Total sales (8000 $40) $320,000 (ii) Production budget Expected unit sales 8000 Add: Desired ending finished goods units (10,000 X 20%) 2000 Total required units 10000 Less: Beginning finished goods units Required production units 10000 (iii) Direct material budget Units to be produced 10000 Direct materials per unit in kg Total kilograms needed for production (10,000 * 1) 10000 Add: Desired ending direct materials (kg) Total materials required 10000 Less: Beginning direct materials (kg) Direct materials purchases 10000 Cost per kg Total cost of direct materials purchases $70,000 (iv) Direct labor budget Units to be produced 10000 Direct labor time (hours) per unit 0.35 Total required direct labor hours (10,000 * 0.35) 3500 Direct labor cost per hour $20 Total direct labor cost $70,000 (V) Selling and Administrative Expenses Budget Variable expenses Sales commissions $40,000 Total variable expenses $40,000 Fixed expenses Administrative salaries $15,500 Advertising for helmets $11,000 $800 Depreciation on office equipment $300 Office supplies expense $10,000 Research and development $500 Professional fees $38,100 Total fixed expenses Total selling and administrative expenses $78,100 Other Info 1-Bicycle Helmet Company's selling price is $40.00 per device. 2-Each helmet requires 1 kilogram (KG) of material, at a unit cost of $7.00 per kg, to produce. 3-It takes 0.35 direct labor hours to produce one helmet, at a unit price of $20 per hour. 4-Income tax expense is 45% of income from operation. 5-The types of manufacturing and period costs that would be incurred in making helmet, and assumed total dollar amounts are as follows: a. Rent on production equipment: $6,000 b. Insurance on factory building: $1,500 c. Raw Materials: $70,000 d. Utility costs for the factory: $900 e Office supplies: $300 f. Direct labor: $70,000 g. Depreciation on office equipment: $800 h. Miscellaneous manufacturing items: $1,000 i. Administrative salaries: $15,500 j. Property taxes on factory building: $400 k. Advertising for the Helmets: $11,000 1. Sales commissions: $40,000 m. Depreciation on factory building: $1,500 n. Professional fees: $500 0. Research and development: $10,000