Assume a merchandising company provides the following information from its master budget for the month of May:

Sales	$ 242,000
Cost of goods sold	$ 83,000
Cash paid for merchandise purchases	$ 78,000
Selling and administrative expenses	$ 38,000
Cash paid for selling and administrative expenses	$ 38,200

What is the budgeted net operating income?

Multiple Choice

• $43,000

• $121,000

• $4,800

• $135,800

• Assume a companys direct labor budget for July estimates 10,000 labor-hours to meet the months production requirements. The variable manufacturing overhead rate used for budgeting purposes is $2.50 per direct labor-hour. The budgeted fixed manufacturing overhead for July is $60,000 including $7,000 of depreciation. What is the amount of budgeted cash disbursements for manufacturing overhead for July?

  Multiple Choice

• $84,000

• $86,000

• $92,000

• $78,000