1. Flexible Budgeting

   At the beginning of the period, the Fabricating Department budgeted direct labor of $31,000 and equipment depreciation of $46,000 for 3,100 hours of production. The department actually completed 3,800 hours of production.

   Determine the budget for the department, assuming that it uses flexible budgeting. $

2. Production Budget

   Pasadena Candle Inc. projected sales of 40,000 candles for January. The estimated January 1 inventory is 2,800 units, and the desired January 31 inventory is 4,000 units.

   Prepare a production budget report in units for Pasadena Candle Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

   Pasadena Candle Inc. Production Budget For the Month Ending January 31

   Expected units to be sold
   Desired ending inventory, January 31
   Total units available
   Estimated beginning inventory, January 1
   Total units to be produced in January

3. Schedule of Cash Collections of Accounts Receivable

   Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows:

   January	$210,000
   February	250,000
   March	330,000

   All sales are on account. 55% of sales are expected to be collected in the month of the sale, 41% in the month following the sale, and the remainder in the second month following the sale.

   Prepare a schedule indicating cash collections from sales for January, February, and March.

   Pet Supplies Inc. Schedule of Cash Collections from Sales For the Three Months Ending March 31

   	January	February	March
   January sales on account:
   Collected in January	$
   Collected in February		$
   Collected in March			$
   February sales on account:
   Collected in February
   Collected in March
   March sales on account:
   Collected in March
   Total cash collected	$	$	$