Budget Excel Spreadsheet Budgeted sales are expected to be: \begin{tabular}{|l|l|l} \hline Selling Price & $20 & Per unit \\ \hline \end{tabular} Prepare the Budgets for second quarterl! two pounds of material are needed for each unit of product. The company desires to have on hand at the end of each month equal to 20% of follow month's production needs. This was meet at the end of March. Material cost 60 per pound. 60% is paid for in current month, other 40% is paid in the next month. March 31 balance owed is 15,000 . Times cost per pound Total Cost of Purchases Schedule of Cash Payments: AP March 31 $15,000 4) Direct Labor Budgel Each unit requires 08 hours of direct Labor. The Company pays over time Employees make $15 per hour for first 40 hours, time and a half for anything over 40 hours. if each employee works 40 hours, it would be 2,000 hours total \begin{tabular}{|l|r|} \hline Labor hours per unit & 0.08 \\ \hline Number of hours at 40 hours per week & 2000 \\ \hline Hourly rate & $15 \\ \hline \end{tabular} PRODUCTION in units Direct labor hours per unit Labor hours required Hours at Regular rate (first 2,000 hours or less) Times regular rate Regular labor costs Hours at overtime (Any over 2,000 hours) Times overtime rate Overtime Labor costs Total DL costs (add rows 130 and 133) \begin{tabular}{|r} \hline Check \# \\ $118,200 \\ \hline \end{tabular} Variable MOH is $2 per unit produced. Fixed MOH is $30,000 per month. The Fixed MOH includes $10,000 of depreciation that is not a cash outlow. Wanahlo 162 Other cash expenses and information for the month include 183 A) An open line of credit allows our company to borrow up to $75,000 per quarter 184 B) We must have a minimum cash balance each month of $40,000 C) All borrowing is done at beginning of month, repayments at end of month D) Interest is paid at 10% per year on all amounts borrowed E) Cash dividends to be paid in April are (cell E187) F) Cash equipment purchases in May (cell E188) and in June (cell F188) G) Cash balance at beginning of April is $60,000 Less Disbursements Material Purchases (Budget 3) Direct labor (Budget 4) MOH (Budget 5) Selling and Adm. (budget 6) Dividends (Letter E) Equipment purchases (letter F ) Total Disbursements Excess (deficiency) of cash Less Disbursements Matenial Purchases (Budget 3) Direct labor (Budget 4) MOH (Budget 5) Selling and Adm. (budget 6) Dividends (Lelter E) Equipment purchases (letter F ) Total Disbursements Excess (deficiency) of cash Financing (if needed) Borrowing Repayment Interest " Total Financing Cash Balance, Ending