Joshua Hill, Marigold & Hill Fabricators' production manager, has just completed the company's production budget and direct labor budget for the first quarter, January February March Quarter 23,000 30,000 32,000 85,000 Budgeted unit sales + Budgeted ending inventory Total units required 6,000 6,400 7.200 7,200 29,000 36,400 39.200 92,200 - Beginning inventory 2.800 6,000 6,400 2.800 26,200 Budgeted production 30,400 32,800 89.400 January February March Quarter 3040 32.800 89,400 January February March Quarter 26,200 30,400 32,800 89,400 10.20 0.20 0.20 0.20 Budgeted production Standard DLH per unit Total DLH required Standard wage rate 5.240 6,080 6,560 17,880 $16 $16 $16 $16 $83.840 $97.280 $104,960 $286,080 Budgeted DL cost He has identified the following monthly expenses that will be needed to support the company's manufacturing process. Yamiable Overhead He has identified the following monthly expenses that will be needed to support the company's manufacturing process. Fixed Overhead Variable Overhead per month per DLH $30,000 18.200 $1.20 Depreciation Indirect materials Indirect labor 21,000 $0.20 Utilities 19.000 $0.15 Property taxes 4.300 Maintenance 6.000 $0.20 The company applies manufacturing overhead based on direct labor hours, and the current predetermined rates are $1225 per direct labor hour for fixed manufacturing overhead and $1.75 per direct labor hour for variable manufacturing overhead. Prepare Marigold & Hill's marlofacturing overhead budget for the first quarter. (Round per unit answers to 2 decimal places, es 52.75 and all other answers to decimal places, eg. 5,275.) January February March $ $ $ James Smith, Crane & John Fabricators' budget director, has received budget information from several managers and is preparing the company's cash budget January February March Quarter 476,200 559,860 636,720 1.672,780 80,505 253,125 274,730 608,360 Collections from sales Payments for direct materials Payments for direct labor Payments for manufacturing overheads Payments for Selling & administrative expenses 98,640 103,680 116,640 318.960 78,490 78.980 80.240 237.710 111.400 116,440 123.160 351.000 In addition to the information he received from these managers, James knows the following: In addition to the information he received from these managers, James knows the following: . . Crane & John plans to have $32,400 in its cash account on January 1. Crane & John plans to purchase and pay cash for a piece of land in January at a cost of $85,000. Crane & John plans to make a cash purchase of equipment in March at a cost of $28,000. Crane & John's income taxes from last quarter totaling $26,400 will be paid in January Crane & John is required to maintain a minimum cash balance of $50.000 in its account at First National Bank . . Crane & John has negotiated with the First National Bank to provide a $175,000 line of credit that can be borrowed against in 51.000 increments on the first day of the month. Any repayments on the line of credit must also be made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Crane & Hill's cash budget for the first quarter. (Round answers to decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank Do not enter 0. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses ex 45).)
