Following the data for Altor Corporation, a manufacturer of professional basketball balls.

Sales for the first quarter of 2020 are expected to be 8,500 units. For the second quarter the company expect to have an increase of 30% of the previous quarter units sold. For the third quarter the company expects an increase of 20% of the second quarter units sold. For the forth quarter the company expects an increase of 40% of the third quarter units sold. The sale price is $90 per unit. Prepare a sales budget for the year.

Altor believes it can meet future sales needs with an ending inventory of 15% of next quarters budgeted sales volume. Fourth Quarter 2019 on hand inventory was 1,275 units. First Quarter 2021 projected sales are 22,300 units. Prepare a production budget for the year.

Altor maintains an ending inventory or raw material equal to 20% of the next quarters production requirements. The manufacture of each product requires 1.5 yards of leather material with an expected cost of the leather at $6 per yard. Assume that you would like to have 4,230 yard of leather as your desire ending direct material inventory for the fourth quarter of 2020. Inventory on hand as of first quarter 2020 was 1.760 yards of leather. Prepare a direct material budget for the year.

It takes 1.5 hours of direct labor to produce each unit of finished goods. The projected hourly rate for the floor employees for 2020 is $12 per hour. Prepare a direct labor budget for the year.

Altor Corporation expects variable costs to fluctuate with the production volume per quarter: indirect materials $0.95 per production unit, indirect labor $1.90 per production unit, utilities $0.80 per production unit, and maintenance $1.10 per production unit. Fixed cost for the company includes: supervisor salaries per quarter, $18,000; depreciation of equipment per quarter, $3,500, equipment rent per quarter, $6,300; Insurance per quarter, $2,700, Maintenance per quarter, $4,100. Prepare a manufacturing overhead budget for the year.

Variable expense rates per unit of sales are sales commissions $2.50 and freight-out $1.25. Quarterly Fixed selling and administrative expenses include: advertising - $3,300; sales salaries - $12,350; office salaries - $7,975; equipment depreciation - $880; insurance - $960. Prepare a selling and administrative expense budget for the year.

The January 1, 2020, cash balance is expected to be $57,800. For the company sales, cash is collected at 70% in the quarter sold and 28% is collected in the following quarter. Accounts receivable of $89,000 at December 31, 2019, is expected to be collected in full in the first quarter of 2020. The company are expected to sell some excess old finished goods and raw material inventory for $28,000 cash in the first quarter of 2020. Direct materials are paid 60% in the quarter purchased and 40% are paid in the following quarter. Accounts payable of $37,600 as of at December 31, 2019, is expected to be paid in full in the first quarter of 2020. Direct labor is paid 100% in the quarter incurred. Manufacturing overhead and selling and administrative expenses are all paid in the quarter incurred except depreciation that is not included in the cash distribution. Management plans to purchase new office equipment in the third quarter with a cost of $43,200 cash. Altor makes equal quarterly payments of dividends of $25,000. Prepare a schedule of collections from customers for the year.