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Scott Logan Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the year: January 9,500

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Scott Logan Equipment produces exercise equipment. The following schedule reveals anticipated monthly production of bicycles for the first three months of the year: January 9,500 February 10,000 March 11,000 Scott budgets for 1.5 direct labor hours per bicycle, at an average cost of $18.00 per hour. Variable factory overhead is applied at the rate of $7.75 per direct labor hour. Fixed overhead is expected to run $70,000 per month, which includes $9,000 per month of noncash expenses related to depreciation. Determine the total expected monthly cash outflow for labor and overhead. Worksheet 5 Estimated monthly cash outflows for direct labor and factory overhead: JanuaryFebruaryMarch 9,500 10,000 11,000 Estimated bicycles produced Direct labor hours per bicycle 1.5 X 1.5 X 1.5

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