QUESTION 1 Hazlett Company operates at capacity and makes plastic hairbrushes. Hazlett is preparing its cash...

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QUESTION 1 Hazlett Company operates at capacity and makes plastic hairbrushes. Hazlett is preparing its cash budget for the first quarter of 2020 and has estimated sales based on past experience. The following information is gathered by the management accountant. However, some of the information is missing or incomplete, which requires further attention. January February March Budgeted sales (RM5 per unit) RM80,000 RM95,000 RM92,500 Budgeted direct material purchases (RM5 per kg) Budgeted direct labour costs (RM10 per direct RM16,830 RM18,790 RM17,520 labour hour) RM16,300 RM18,950 RM18,150 Allocation of manufacturing overhead cost (based on direct labour hours): Fixed RM10,680 RM10,680 RM10,680 Variable (RM0.20 per direct labour hour) ? ? ? Budgeted monthly operating expenses: Selling RM0.15 per unit sold General administration RM14,200 per month Statement of Financial Position as at 31 December 2019 RM RM Assets Cash 5,100 Account receivable 21,400 Less: Allowance for bad debts 900 20,500 Inventories Direct materials 5,600 Finished goods 8,000 14,200 Fixed assets 200,000 Less: Accumulated depreciation 50.200 149,800 Total assets 189,600 Liabilities Accounts payable Insurance payable Taxes payable Common stocks 7,245 6,500 8,700 100,000 Retained earnings 67,155 Total liabilities and equity 189,600 QUESTION 1 Hazlett Company operates at capacity and makes plastic hairbrushes. Hazlett is preparing its cash budget for the first quarter of 2020 and has estimated sales based on past experience. The following information is gathered by the management accountant. However, some of the information is missing or incomplete, which requires further attention. January February March Budgeted sales (RM5 per unit) RM80,000 RM95,000 RM92,500 Budgeted direct material purchases (RM5 per kg) Budgeted direct labour costs (RM10 per direct RM16,830 RM18,790 RM17,520 labour hour) RM16,300 RM18,950 RM18,150 Allocation of manufacturing overhead cost (based on direct labour hours): Fixed RM10,680 RM10,680 RM10,680 Variable (RM0.20 per direct labour hour) ? ? ? Budgeted monthly operating expenses: Selling RM0.15 per unit sold General administration RM14,200 per month Statement of Financial Position as at 31 December 2019 RM RM Assets Cash 5,100 Account receivable 21,400 Less: Allowance for bad debts 900 20,500 Inventories Direct materials 5,600 Finished goods 8,000 14,200 Fixed assets 200,000 Less: Accumulated depreciation 50.200 149,800 Total assets 189,600 Liabilities Accounts payable Insurance payable Taxes payable Common stocks 7,245 6,500 8,700 100,000 Retained earnings 67,155 Total liabilities and equity 189,600