Dawson Company Year 2-1st Quarter Budget Standard Cost per gallon of Glue: Container Resin Direct Labor Variable Overhead Variable Overhead Rate: Rate Total Cost 1 Container $ 2.10 $ 2.10 8 Pounds $ 0.55 $ 4.40 2 Hours $ 6.50 $ 13.00 2 DL Hours $ 3.00 $ 6.00 Total Standard Variable Cost $ 25.50 Estimated Annual Overhead $ 57,600 Estimated Annual Hours $ 19,200 Based on 3.00 9,600 Units Other Data: Sales Price $ 110 per gallon Sales - Cash 20% Sales - Credit A/R Receipt-current month A/R Receipt - next month A/P Payment current month 80% 60% A/R Accounts Receivable 40% 50% A/P Accounts Payable A/P Payment - next month Ending Inventory - RM 50% 10% Of the following month's production Ending Inventory - FG Cash Accounts Receivable Accounts Payable Inventory: Resin Containers 20% Of the following month's sales General Ledger Balances as of January 1, Year 2: $ 4,000 $ 20,000 $ 1,700 60 containers 496 pounds Glue 120 gallons Operating Expense Data: Variable Selling & Administration Fixed Selling & Admin.-Without Depreciation Fixed Selling & Admin.-Depreciation 5% of Sales Revenue $ 35,250 per month $ 4,750 per month Special Events: Dividend $ 20,000 March Purchase New Truck for Cash 18,000 February 60 month life January February March April $300/month May Sales Forecast in Units 600 700 900 950 800 January February March Quarter Cash at End of Period $ $ $ $ Operating Income for the Period $ $ - $ $