d. Each month, overhead estimates are based on direct labour hours. Fixed cost component Variable cost component Supplies R1.00 Power R0.20 Maintenance R28 000 R1.10 Supervision R14 000 Depreciation R100 000 Taxes R7 000 Other R56 000 R1.60 e. Monthly selling and administrative expenses are also estimated based on units sold. Fixed costs Variable costs Salaries R30 000 Commissions R0.75 Depreciation R5 000 Shipping R2.60 Other R10 000 R0.40 f. The unit selling price of the control valve is R90 g In February, the company plans to purchase land for future expansion. The land costs R90 000 h. All sales and purchases are for cash. Cash balance on 1 January equals R162 900. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid one month later, as is the interest due. The interest rate is 12% per annum. Required: 1.7 1.8 1.9 1.10 Ending finished goods inventory budget Cost of goods sold budget Budgeted income statement (ignore taxes) Cash budget Projected sales in units for the coming four months are as follows: January 20 000 February 25 000 March 30 000 April 30 000 d. Each month, overhead estimates are based on direct labour hours. Fixed cost component Variable cost component Supplies R1.00 Power R0.20 Maintenance R28 000 R1.10 Supervision R14 000 Depreciation R100 000 Taxes R7 000 Other R56 000 R1.60 e. Monthly selling and administrative expenses are also estimated based on units sold. Fixed costs Variable costs Salaries R30 000 Commissions R0.75 Depreciation R5 000 Shipping R2.60 Other R10 000 R0.40 f. The unit selling price of the control valve is R90 g In February, the company plans to purchase land for future expansion. The land costs R90 000 h. All sales and purchases are for cash. Cash balance on 1 January equals R162 900. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid one month later, as is the interest due. The interest rate is 12% per annum. Required: 1.7 1.8 1.9 1.10 Ending finished goods inventory budget Cost of goods sold budget Budgeted income statement (ignore taxes) Cash budget Projected sales in units for the coming four months are as follows: January 20 000 February 25 000 March 30 000 April 30 000