Sorry added requirements
k. Variable selling and administrative expenses include supplies at 2% of sales. I. Capital expenditures include $25,000 for new manufacturing equipment, to be purchased and paid in the first quarter. m. Cash receipts for sales on account are 70% in the quarter of the sale and 30% in the quarter following the sale; December 31, 2024, Accounts Receivable is received in the first quarter of 2025; uncollectible accounts are considered insignificant and not considered for budgeting purposes. Direct materials purchases are paid 50% in the quarter purchased and 50% in the following quarter; December 31, 2024, Accounts Payable is paid in the first quarter of 2025. 0. Direct labor, manufacturing overhead, and selling and administrative costs are paid in the quarter incurred. p. Income tax expense is projected at $3,500 per quarter and is paid in the quarter incurred. n. 9. Gavin desires to maintain a minimum cash balance of $20,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quarter; principal repayments are made at the beginning of the quarter when excess funds are available and in increments of $1,000; interest is 12% per year and paid at the beginning of the quarter based on the amount outstanding from the previous quarter. Print Done Cash Payments First Second Third Fourth Quarter Quarter Quarter Quarter Total Total direct materials purchases First Second Third Fourth Quarter Quarter Quarter Quarter Total Cash Payments Direct Materials: Accounts Payable balance, December 31, 2024 1st Qtr.Qtr. 1 direct material purchases paid in Qtr. 1 1st Qtr-Qtr. 1 direct material purchases paid in Qtr. 2 2nd Qtr. Qtr. 2 direct material purchases paid in Qtr. 2 2nd Qtr.-Qtr. 2 direct material purchases paid in Qtr 3 3rd Qtr.-Qtr. 3 direct material purchases paid in Qtr. 3 3rd Qtr.-Qtr. 3 direct material purchases paid in Qtr. 4 4th Qtr.Qtr. 4 direct material purchases paid in Qtr. 4 Total payments for direct materials Direct Labor: Total payments for direct labor Gavin Tire Company Direct Materials Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 1,180 1,280 1.480 1,680 5,620 3 3 3 3 3 Direct materials per tire Direct materials needed for production 2,950 3,200 3,700 4,200 14,050 1,280 1,480 1,680 750 750 Plus: Desired direct materials in ending inventory Total direct materials needed 4,230 4,680 5,380 4,950 14,800 750 1.280 1.480 1,680 750 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 3,480 3,400 3,900 14,050 3,270 4.00 $ GA 4.00 $ 4.00 $ 4.00 $ 4.00 Direct materials cost per pound $ 13,920 S 13,600 $ 15,600||$ 13,080||$ 56,200 Budgeted cost of direct materials Gavin Tire Company Direct Labor Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 1,180 1,280 1,480 1.680 5,620 0.30 0.30 0.30 0.30 0.30 Direct labor hours per unit Direct labor hours needed for production 354 384 504 1,686 $ 444 20$ 20||$ 20 20$ 20 Direct labor cost per hour $ 7,080 $ 7,680S 8,880 $ 10,080 $ 33,720 Budgeted direct labor cost Gavin Tire Company Manufacturing Overhead Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted tires to be produced 1,480 5.620 1,180 3$ 1,280 3$ 1,680 3$ $ VOH cost per tire 3$ Budgeted VOH $ $ 3,540$ 3,840 $ 4,440||$ 5,040||$ 16,860 Budgeted FOH Depreciation 6,000 6,000 6,000 6,000 24.000 10.860 Utilities, insurance, property taxes 10,860 10,860 10,860 43,440 16,860 16,860 16,860 16,860 67 440 Total budgeted FOH $ 20,400 $ 20,700 $ 21,300 $ 21,900 $ 84,300 Budgeted manufacturing overhead costs Direct labor hours 354 384 444 504 1.686 Budgeted manufacturing overhead costs G 84,300 50 Predetermined overhead allocation rate Gavin Tire Company Selling and Administrative Expense Budget For the Year Ended December 31, 2025 First Second Third Fourth Quarter Quarter Quarter Quarter Total Salaries Expense $ $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 32,000 Rent Expense 4.800 4,800 4,800 4.800 19,200 Insurance Expense 1,950 1,950 1,950 1,950 7,800 Depreciation Expense 2,000 2,000 2,000 2,000 8,000 1,400 1,680 1,960 2,240 7,280 Supplies Expense 18,150 $ 18,430 $ 18,710 $ 18,990 S 74,280 Total budgeted selling and administrative expense
