Brief Exercise 7-2 Preparing a Schedule of Expected Cash Collections (LO2- CC5) Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year. These peak sales are shown in the following sales budget for the second quarter. Budgeted sales April $400,000 May $600,000 June $300,000 Total $1,300,000 2 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 65% are collected in the month following the sale and the remaining 10% are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totalled $380,000, and March sales totalled $360,000 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter Total SILVER COMPANY Schedule of Expected Cash Collections April May June February sales March salos April sales May sales June sales Thalash rating 5 als OS Exercise 7-5 Preparing Direct Labour and Manufacturing Overhead Budgets (LO2 - CC8, 9) The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. Units to be produced 1st Quarter2nd Quarter3rd Quarter4th Quarter 24,000 27,90 26,000 22,000 Each unit requires 12 direct labour-hours, and direct labour-hour workers are paid $22 per hour. In addition, the variable manufacturing overhead rate is $120 per direct labour hour. The fixed manufacturing overhead is $161,000 per quarter . The only noncash element of manufacturing overhead is depreciation, which is $45,000 per quarter Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced Required: 1. Prepare the company's direct labour budget for the upcoming fiscal year, assuming that the direct labour workforce is adjusted quarter to match the number of hours required to produce the forecasted number of units produced. RAREDON CORPORATION Direct Labour Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total direct labour-hours needed Total direct labour cost 2. Prepare the company's manufacturing overhead budget. RAREDON CORPORATION Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Total manufacturing overhead Cash disbursements for manufacturing overhead Activate