\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Manufacturing Overhead } \\ \hline Indirect materials & 30c & perlabor hour \\ \hline Indirect labor: & 506 & per labor hour \\ \hline Utilities & 404 & perlabor hour \\ \hline Maintenance & 30c & per labor hour \\ \hline Salaries & $41,000 & per month \\ \hline Depreciation & $17,900 & permonth \\ \hline Propertytaxes & $2,400 & permonth \\ \hline Insurance: & $1,300 & per month \\ \hline Maintenance & $1,200 & per month \\ \hline \end{tabular} Selling and Administrative Varisble seline and adminitrative cost per unit is $170 \begin{tabular}{lr} Advertising & $16,000 amonth \\ Insurance & $1,300 a month \\ Salaries & $72,000 amonth \\ Depreciation & $2,600 amonth \\ Other fucd costs & $3,100 a month \end{tabular} Other Information The Cash balance on December 31, 2024, totaled $102,000, but management has decided it would like to maintain a cash balance of at least $700,000 beginning on January 31,2025 . Dividends are paid each month at the rate of $2.60 per share for 5,280 shares outstanding. The company has an open line of credit with Romney's Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 9% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $490,000 equipment purchase is planned for February. For the first quarter of 2025, prepare a production budget. eTextbook and Media Waterways likes to keep 10% of the next month's unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31,2024 , totaled $185,400. Direct Materials Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit: Waterways Hites to kecp 5% of the materials needed for the next monthinits endinginventory. Raw Materiais on December 31,2024 totaled 11,370 pounds. Payment for materials is made within 15 days. 50 is paid in the month of purchase, and 50x is paid in the month after purchase. Accounts Pavable on December 31, 2024, totaled $120,595. Directlabor Latoor reouires 12 minutes per unit for completion and is paid at a rate of 59 per hour Waterways Corporation is preparing its bodget for the coming vear, 2025. The first step is to plan for the first quarter of that coming vear. The compary has gathered information fromits managers in preparation of the budgeting process. Waterwars tokes to keep 10% of the next month's unit sales in ending imentory. All sales are on account: 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivabio on December 31,2024 , totaled $185,400
