Essays (NB! Please save frequently or type in a word editor then upload your he or copy and paste here) Management Accounting Sectional two Spring 2022 Answer the following question Queston 1 Micro Soft Information Processing Company provides word processing services for its clients. Micro Soft uses state-of-the-art equipment and employs Six data entry clerks who each average 200 hours of work a month. The following table sets out information developed by the budget officer. Actual -2020 Forecast-2021 November December January February March $ Client Billings (Sales) Selling and Administrative 140,000 20.600 $ $ 145,000 135,000 15,500 14,000 $ $ 110,000 150,000 13,000 15,500 Expenses Operating Supplies 8.500 6.500 4,500 5,500 6,000 Purchases Processing Overhead 6,200 4,500 3,800 3.600 4,500 The company has a bank loan of $20,000 at a 12 per cent annual interest rate. Interest is paid monthly, and $4.000 of the principle of the loan is due February 28, 2021. No capital expenditures are anticipated for the first quarter of the coming year. Income taxes of $5,450 for calendar 2020 are due and payable on March 15, 2021. The company's six employees earn $10. an hour, and all payroll-related labour benefit costs are included in processing overhead. For the items included in the table, assume the following conditions Client Billings Operating Supplies 60% of Sales are cash Sales 50% credit sales collected during the month of sale 40% are collected in the first month following the sale 10% are collected in the second month following the sale Paid for in the month purchased