Suntel Corporation is preparing its 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? Data table Suntel Corporation Cash Payments Budget Cash payments for direct materials: Current month's purchases Next month's purchases Cash payments for direct labour Cash payments for manufacturing overhead Cash payments for operating expenses Cash payment for taxes a. Suntel Corporation pays for 55% of its direct materials purchases in the month of purchase and the remainder the following month. The current month's direct material purchases were $70,000, while Suntel Corporation anticipates $86,000 of direct material purchases next month. b. Direct labour for the upcoming month is budgeted to be $39,000 and will be paid at the end of the upcoming month c. Manufacturing overhead is estimated to be 140% of direct labour cost each month and is paid in the month in which it is incurred. This monthly estimate includes $15,000 of depreciation on the plant and equipment. d. Monthly operating expenses for next month are expected to be $47,000, which includes $2,400 of depreciation on office equipment and $1,700 of bad debt expense. These monthly operating expenses are paid during the month in which they are incurred. e. Suntel Corporation will make an estimated tax payment of $7,300 next month. Total cash payments Print Done Help me solve this Video Get more help Clear all Check