Built-Tight is preparing its master budget for the quarter ended September 30, 2015. Budgeted sales and cash payments for product costs for the quarter follow: July August September Budgeted sales $ 60,500 $ 76,500 $ 51,500 Budgeted cash payments for Direct materials 16,860 14,140 14,460 Direct labor 4,740 4,060 4,140 Factory overhead 20,900 17,500 17,900 Sales are 30% cash and 70% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,700 in accounts receivable; $5,200 in accounts payable (*included in cash payments for direct materials); and a $5,700 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning of the month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,700 per month), and rent ($7,200 per month).