Can you please double check if the Manufacturing Overhead budget is correct? I'm not sure how to do the quarter column of selling and administrative expenses budget. Can you please show me how to do that and help me with the cash budget spreadsheet as well!

Thank you!

In-Class problem ABC Company makes one product and it provided the following information to help prepare the master budget for its first four months of operations: The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, September October, and November are 8,400, 10,000, 12,000, and 13,000 units, 14,000 units, and 15,000 units respectively. All sales are on credit. 40% of credit sales are collected in the month of the sale and 60% in the following month. The ending finished goods inventory equals 20% of the following month's unit sales. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. Accounts Payable balance on June 30 was $15,000. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two direct labor-hours. There is no guaranteed minimum wages. Variable manufacturing overhead is $1.50 per direct labor hours. Fixed manufacturing overhead is $60,000 per month, which includes $10,000 depreciation expense. There is no noncash expense items other than depreciation expense. Total predetermined overhead rate (both Variable and Fixed MOH combined) is calculated based on direct labor hours every quarter (round to the nearest dollar). The variable selling and administrative expense per unit sold is $1.80. The fixed selling and administrative expense per month is $60,000, which includes $20,000 depreciation expense. There is no noncash expense items other than depreciation expense. For cash budget: The company's beginning cash balance on July 1 was $38,000. The company requires a minimum cash balance of $100,000 and may borrow any amount needed from a local bank at an annual interest rate of 16% (therefore 4% quarterly). The company may borrow any amount at the beginning of any quarter and may repay its loans at the end of any quarter. Interest payments are due on any principal at the time it is repaid. o The company plans to pay dividends of $100,000 during July. Prepare the following budgets: 1. Sales Budget & Schedule of Cash Collection 2. Production Budget 3. Direct materials purchase Budget & Schedule of Cash Disbursement 4. Direct Labor Budget 5. Manufacturing Overhead Budget 6. SG&A Budget 7. Cash Budget 8. Budgeted Income Statement Units Unit selling price Budgeted sales Sales Budget July Aug Sep 10,000 12,000 13,000 $70 $70 $70 $700,000 $840,000 $910,000 Schedule of expected cash collections July Aug Sep 352800 Quarter 35,000 $210 $2,450,000 Quarter A/R June 30 July Sales: 280000 420000 Aug Sales: $336,000 $504,000 Sep Sales: $364,000 Total cash collections $ 632,800 $ 756,000 $ 868,000 $2,256,800 Sep Oct Units to be sold Desired ending inventory Amount to be available Less beginning inventory Units to be produced Production Budget July Aug 10,000 2,400 12,400 2,000 10,400 12,000 2,600 14,600 2,400 12,200 13,000 2,800 15,800 2,600 13,200 14,000 3,000 17,000 2,800 14,200 Units to be produced Direct materials per unit Materials required for production Desired ending material inventory Total material to be available Less beginning inventory Total materials to be purchased Material price per unit Total cost of material to be purchased Direct materials Purchases Budget July Aug Sep 10,400 12,200 5 5 52,000 61,000 6,100 6,600 58,100 67,600 5,200 6,100 52,900 61,500 2 2 105800 123000 Quarter 13,200 35,800 5 15 66,000 179,000 7,100 19,800 73,100 198,800 6,600 17,900 66,500 180,900 2 2 133000 361,800 Schedule of Expected Cash Payments for Materials July Aug Sep Quarter Total cost of Purchases (in $) $ 105,800 $ 123,000 $ 133,000 $ 361,800 A/P from June 30 July Purchases : $ $ 15,000 31,740 $ $ $ 15,000 105,800 74,060 Aug Purchases: $ 36,900 $ 86,100 $ 123,000 Sep Purchases: $ 39,900 $ 39,900 TOTAL cash disbursements for DM purchase $ 46,740 $ 110,960 $ 126,000 $ 283,700 Production (in units) DLH's/Unit Labor Hours Required Wage rate TOTAL DLC Direct Labor Budget July Aug Sep 10400 12200 2 2 20800 24400 $ 15 $ 15$ $ 312,000 $366,000 $ Quarter 13200 35800 2 2 26400 71600 15 $ 15 396,000 $ 1,074,000 allocation base(e.g.Planned production in units) variable overhead rate Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing overhead Less depreciation Cash disbursements for manufacturing overhead Manufacturing Overhead budget July Aug Sep 20800 24400 1.50 1.50 $ 31,200 $ 36,600 $ $ 60,000 $ 60,000 $ $ 91,200 $ 96,600 $ $ 10,000 $ 10,000 $ $ 81,200 $ 86,600 $ Quarter 26400 71600 1.50 1.50 39,600 $ 107,400 60,000 $ 180,000 99,600 $ 287,400 10,000 $ 30,000 89,600 $ 257,400 Planned sales in units variable selling and administrative expense per unit Total Variable SG&A expenses Total Fixed SG&A expenses Total SG&A expenses - noncash cost (Depreciation) Cash disbursements for SG&A Selling and administrative expenses budget July Aug Sep Quarter 10000 12000 13000 $38,000 1.80 1.80 1.80 1.80 1.80 1.80 $ 18,000 $ 21,600 $ 23,400 $ 60,000 $ 60,000 $ 60,000 $ 78,000 $ 81,600 $ 83,400 $ 20,000 $ 20,000 $ 20,000 $ 58,000 $ 61,600 $ 63,400 $ 395,614 Cash budget July Aug Sep Quarter CASH - BEGINNING CASH RECEIPTS TOTAL CASH AVAILABLE Cash disbursements: Payments for DM Payments for DL Payments for MOH Payments for S&A Dividends payment TOTAL CASH DISBURSED Excess (deficiency) of cash available over disbursements Financing: Borrowings Less: Repayment including Interest TOTAL FINANCING CASH - ENDING