1. MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:

   	Junior	Pro Striker
   Production budget	6,100 units	18,500 units

   Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

   	Forming Department	Assembly Department
   Junior	0.25 hour per unit	0.5 hour per unit
   Pro Striker	0.35 hour per unit	0.65 hour per unit

   The direct labor rate for each department is as follows:

   Forming Department	$14 per hour
   Assembly Department	$9 per hour

   Prepare the direct labor cost budget for March.

   MatchPoint Racket Company
   Direct Labor Cost Budget
   For the Month Ending March 31
   	Forming Department	Assembly Department
   Hours required for production:
   Junior
   Pro Striker
   Total hours required
   Hourly rate	x$	x$
   Total direct labor cost	$	$

2. Factory Overhead Cost Budget

   Sweet Tooth Company budgeted the following costs for anticipated production for August:

   Advertising expenses	$264,090
   Manufacturing supplies	14,470
   Power and light	43,170
   Sales commissions	291,870
   Factory insurance	25,140
   Production supervisor wages	126,970
   Production control wages	33,010
   Executive officer salaries	269,170
   Materials management wages	36,310
   Factory depreciation	20,570

   Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.

   Sweet Tooth Company
   Factory Overhead Cost Budget
   For the Month Ending August 31
   Variable factory overhead costs:
   	$
   Total variable factory overhead costs		$
   Fixed factory overhead costs:
   	$
   Total fixed factory overhead costs
   Total factory overhead costs		$

3. Schedule of Cash Collections of Accounts Receivable

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

   May	$180,000
   June	250,000
   July	370,000

   All sales are on account. 55 percent of sales are expected to be collected in the month of the sale, 33% 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 May, June, and July.

   Furry Friends Supplies Inc.
   Schedule of Collections from Sales
   For the Three Months Ending May 31
   	May	June	July
   May sales on account:
   Collected in May
   Collected in June
   Collected in July
   June sales on account:
   Collected in June
   Collected in July
   July sales on account:
   Collected in July
   Total cash collected	$	$	$

4. Schedule of Cash Payments for a Service Company

   SafeMark Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows:

   March	$172,200
   April	163,600
   May	148,900

   Depreciation, insurance, and property taxes represent $37,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 70% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month.

   Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May.

   SafeMark Financial Inc.
   Schedule of Cash Payments for Selling and Administrative Expenses
   For the Three Months Ending May 31
   	March	April	May
   March expenses:
   Paid in March	$
   Paid in April		$
   April expenses:
   Paid in April
   Paid in May			$
   May expenses:
   Paid in May
   Total cash payments	$	$	$