Prepare the Manufacturing Overhead budget, The sales and Administrative expense budget and the Cash budget.

1. Manufacturing Overhead budget - use 35,250 for the budgeted direct labor-hours plus the information given in the first budget problem.

2. Sales and Administrative expense budget - use the information given in the first budget problem.

3. The Cash budget - The cash collected in July is $1,830,000 plus the information given in the first budget problem.

(The first budget problem)

Budget Parameters 1. Projected units sales: June sales 120,000; July, 140,000; August 150,000; September 170,000; October 140,000. 2. Sales price per unit, $15.00. 10% of sales are collected in the month of sales and 90% the month following 3. Units in ending inventory each month should equal 10% of next month sales. Beginning inventory in units was 14,000 units. 4. Raw material required per unit is 2 pounds @ $3.00 per lb. The beginning raw material inventory is 14,000 lbs. All raw material costs are paid in the month following purchase. 5. Ending inventory required at the end of each month is 5% of next month needs. 6. Direct labor required to produce one units is .25 direct labor hour. The hourly rate is $10.00. 7. Variable overhead costs for the quarter are projected to be $575,000 and fixed overhead costs are projected to be $225,000 monthly. 115,000 direct labor hours are expected to be worked in the quarter. Depreciation expense is $20,000 per month. 8. Sales and administrative expenses are projected to be: salaries $275,000 per month, commissions 2% of sales dollars and other expenses are expected to be $75,000 per month plus 3% of sales dollars. All variable costs are paid in the following month. 9. The beginning cash balance is $50,000. No Capital expenditures are planned for the quarter nor will any dividends be paid during the quarter