At Bell, each unit of product requires 0.05 hours (3 minutes) of direct labor. The labor can be unskilled because the production processis relatively simple and formal training is not required Royal pays its workers at the rate of $11 per hour At Bel, manufacturing overhead is applied to units of product on the basis of direct labor hours The variable manufacturing overhead rate is $21 per direct labor hour. Fixed manufacturing overhead is $40,000 per month, which includes $19,000 of noncash costs Iprimanily depreciation of plant assets). 2302 Quiz 4 Due April 4th in Class 30 Points 10% for every day late thereafter Prepare a set of Budgeted Financial Statements (Income Statement, Statement of Retained Earnings and Balance Sheet) Turn in using EXCEL Bell Corp is preparing budgets for the quarter ending June 30th Budgeted sales for the next five months are April May lune July August The selling price is $12 per unit Alli sales are on account Belrs collection pattern is: 60% collected in the month of sale. 10,000 units 40,000 units 20,000 units 15,000 units 10,000 units At Bel, the selling and administrative expense budget is divided into variable and fiued components The variable selling and administrative expenses are $0.60 per unit sold Fixed selling and administrative expenses are $60,000 per month The fwed selling and administrative expenses include $10,000 in costs- -that are not cash outflows of the current month For the Cash Budget assume: Maintains a 12% open line of credit for so oo. Maintains a minimum cash balance of $30,000 Borrews on the first day of the month and repays loans on the last day of the month Pays a cash dividend of $40,000 in April in costs-primarily depreciation 40% collected in the month Soloing ule, in April, the March 31st accounts receivable balance of $30,000 will be collected in fult in April The Pechases $43,700 of equipment in May and $49,000 in lune (both purchases paid in cash). Has an April 1 cash balance of $40,000 management at Bea Company wants ending inventory to be equal to 20% of the folowing month's budgeted sales in units On March 31st, 3,000 units were on hand At Bell Company, sis pounds of material are required per unit of product nell reported the foilowing account balances prior to preparing its budgeted financial statements Land-5 57,967 43 Common stock-$150,000 Retained earmings $250,000 (April 1) Management wants materials on hand at the end of each month equal to 12% of the following month's production On March 31, 14,000 pounds of material are on hand. Material cost is 50.50 per pound Bell pays $0.50 per pound for its materials upment $75,000 One half of a month's purchases is paid for in the month of purchase, the other hall is paid in the following month The March 31 accounts payatle balance is $13,000