Daley Manulacturing is preparing its master budget for the first quarter of the upcoming yoar. The following data pertain to Dalley Manufacturing't operations: Click the ioon to view the data.) (Click the icon to view additional data.) Read the reguirements: Requirement 1. Prepare a schedule of cash coliections for January, February, and March, and for the quarter-in total. Data table a. Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Saies for the first five months of the upcoming year are budgeted to be as follows: b. Saies are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c. Dalley. Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). d.Of each month's direct material purchases, 20% are paid for in the month of purchase, whille the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materiais should be 20% of next month's production needs. e. Most of the labor at the manufacturing facilify is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.03 . The direct labor rate per hour is $13 pe. hour. All drect labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: f. Monthly manufacturing overhead costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. 9. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalley Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure wil be $11,600 and March's cash expenditure will be $15,800 h. Oporating expenses are budgeted to be $1,20 per unit sold plus fixed operating expenses of $1.400 por month. All operatina b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c. Dalley Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units). d.Ol each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $1.50 per pound. Ending inventory of direct materials should be 20% of next month's production needs. 0. Most of the labor at the manulacturing facility is indirect, but there is some direct labor incurred. The direct labor hours per unit is 0.03 . The direct labor rate per hour is $13 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: 1. Monthly manufacturing overhead costs are $6,520 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. 9. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dalley Manufacturing will purchase equipment for $5,800 (cash), While February's cash expenditure will be $11,600 and March's cash expenditure will be 515,800 h.Operating expenses are budgeted to be $1.20 per unit sold plus fxed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures. 1. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $4,700 for the entire quarter, which includes depreciation on now acquisitions. J. Dalley Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $130,000. The interest rate on these loans is 1% per month simple interest (not compounded). The company would pay down on the line of credit balance in increments of $1,000 if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter. k. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of Fobruary in estimated taxes