Exercise 7-7 Manufacturing: Direct labor and factory overhead budgets LO P1

Addison Co. budgets production of 2,850 units during the second quarter. Other information is as follows:

Direct labor		Each finished unit requires 6 direct labor hours, at a cost of $9 per hour.
Variable overhead		Applied at the rate of $11 per direct labor hour.
Fixed overhead		Budgeted at $640,000 per quarter.

1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.

Exercise 7-18 Budgeted cash receipts LO P2

Jasper Company has sales on account and for cash. Specifically, 65% of its sales are on account and 35% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $515,000 for April, $525,000 for May, and $550,000 for June. The beginning balance of Accounts Receivable is $291,300 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.