Oriole Company expects to have a cash balance of $46,800 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $88,400, February $156,000. Payments for direct materials: January $52,000, February $78,000. Direct labor: January $31,200, February $46,800. Wages are paid in the month they are incurred. Manufacturing overhead: January $21,840, February $26,000. These costs include depreciation of $1,560 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $15,600, February $20,800. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $12,480 in cash. Oriole Company has a line of credit at a local bank that enables it to borrow up to $26,000. The company wants to maintain a minimum monthly cash balance of $20,800. Prepare a cash budget for January and February. ORIOLE COMPANY Cash Budget For the Two Months Ending February 28, 2022 V January February $ 46,800 28,600 eipts V omers 88,400 156000 curities V 12,480 V 100880 156000 V 147680 1,84600 pursements V 52000 i 78000 ead 31200 46800 20280 24440 ative Expenses 15,600 i 20,800 119080 170040 wailable Cash Over Cash Disbursements 28,600 14,560 rowings V 0 6,240 ayments 0 0 28,600 20,800 eTextbook and Media Save for Later Last saved 1 day ago. Attempts: 2 of 3 used Submit Answer Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes.MARIGOLD COMPANY Clothing Department Budget Report For the Month Ended October 31, 2022 Difference Favorable Unfavorable Neither Favorable Budget Actual nor Unfavorable Sales in units 7,520 9.400 1,880 Favorable ble expenses Sales commissions $2,256 $2,444 $188 Unfavorable Advertising expense 752 799 47 Unfavorable Travel expense 3,384 3.854 470 Unfavorable Free samples given out 1,504 1,316 188 Favorable Total variable 7,896 8.413 517 Unfavorable Fixed expenses Rent 1,410 1,410 -0- Neither Favorable nor Unfavorable Sales salaries 1,128 1.128 -0- Neither Favorable nor Unfavorable Office salaries 752 752 -0- Neither Favorable nor Unfavorable Depreciation-autos (sales staff) 470 470 -0- Neither Favorable nor Unfavorable Total fixed 3,760 3.760 -0- Neither Favorable nor Unfavorable Total expenses $11,656 $12,173 $517 Unfavorable As a result of this budget report, Joe was called into the president's office and congratulated on his fine sales performance. He was reprimanded, however, for allowing his costs to get out of control. Joe knew something was wrong with the performance report that he had been given. However, he was not sure what to do, and comes to you for advice. (a) Prepare a budget report based on flexible budget data to help Joe. (List variable expenses before fixed expenses.) MARIGOLD COMPANY Selling Expense Flexible Budget Report Clothing Department For the Year Ended October 31, 2022 V Ne Budget Actual ni 7 Units V 7,520 9,400 le Expenses Commissions 2,256 2,820 2,444 rtising Expense 752 940 799 I Expense V 3,384 4,230 3,854 Samples 1,504 1,880 1,316 Variable Expenses 7,896 9,870 8,413 Expenses 1,410 1,410 1,410 Salaries 1,128 1,128 1,128 e Salaries 752 752 752 eciation-Sales Staff Autos 470 470 470 I Expenses 3,760 3,760 3,760 Tixed Expenses 11,656 $ 13,630 12,173 (b) Should Joe have been reprimanded? Yes