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Secure Corporation is preparing cash payments budget for next month. The following information pertains to the cash payments: (Click the icon to view the data.)

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Secure Corporation is preparing cash payments budget for next month. The following information pertains to the cash payments: (Click the icon to view the data.) How much cash will be paid out next month? More Info Secure Corporation Cash Payments Budget Cash payments for direct materials: 55% of last month's purchases 45% of next month's purchases Cash payments for direct labor Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes a. Secure Corporation pays for 45% its direct materials purchases in the month of purchase and the remainder the following month. Last month's direct material purchases were $70,000, while the company anticipates $80,000 of direct material purchases next month. b. Direct labor for the upcoming month is budgeted to be $36,000 and will be paid at the end of the upcoming month. c. Manufacturing overhead is estimated to be 130% of direct labor cost each month and is paid in the month in which it is incurred. This monthly estimate includes $13,000 of depreciation on the plant and equipment d. Monthly operating expenses for next month are expected to be $42,000, which includes $2,400 of depreciation on office equipment and $1,400 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Secure Corporation will be making an estimated tax payment of $7,300 next month. Total cash payments Print Done

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