PVC Unit Costs Williams Company First Quarter Selling and Administrative Expense Budget Williams Company First Quarter 5 Cost Element January-March January February March Quarter 1 5 Raw materials Units per PVC Unit Price Cost per PVC pipe Variable expenses RAW PVC 5.00 $4.00 $20.00 Sales 420000 480000 600000 1500000 3 RESIN 3.00 $2.80 $8.40 Selling and adr 10.00% 10.00% 10.00% 10.00% Direct labor 0.50 $24.00 $12.00 Total variable 42000 48000 60000 150000 O Factory overhead (per direct 0.50 $12.00 $ 6.00 Fixed expenses 1 Unit cost per PVC pipe $46.40 Fixed selling ar 10000 10000 10000 30000 2 Total selling ar 52000 58000 70000 180000 3 4 5 6 7 8 9 January Overhead Budget Williams Company First Quarter February March Cash Budget Williams Company First Quarter Quarter 1 0 Direct labor ho 3600 4200 4800 12600 January February March 1 Applied factory $12 $12 $12 2 Factory overhe 43,200 50,400 57,600 $12 151,200 Beginning cash balance Add: Receipts 3 Less: included -1000 4 Total factory o $42,200 -1000 $49,400 -1000 $56,600 -3000 Cash sales to customers $148,200 Cash collected from accoun $168,000 $192,000 $192,000 $252,000 $240,000 $288,000 5 Total available cash $ 360,000 $444,000 $ 528,000 6 Less: Disursements 7 Raw materials cash purchas $113,316 $172,956 $181,902 8 Raw materials accounts pay $40,000 $48,564 $74,124 9 Direct labor $86,400 $100,800 $115,200 0 Factory overhead $42,200 $49,400 $56,600 1 Selling and administrative e $52,000 $58,000 $70,000 2 Income tax expense 3 Total disbursements $333,916 $429,720 $497,826 4 5 Excess (deficiency) of availabl $ over cash disbursements 26,084 $ 14,280 $ 30,174 6