The Alderman Company Cash Payments Budget For the Months of April through June April May June Quarter Cash payments for direct materials: 45% of current month purchases 55% of last month's purchases $62,550 $ 54,000 $ 66,150 $ 182,700 203,500 79,000 61,050 76,450 66,000 Cash payments for direct labor 48,000 58,000 73,000 Cash payments for manufacturing overhead and the remainder the following month. The company's direct material purchases for March through June are anticipated to be as follows: March April May June $111,000 $ 139,000 120,000147,000 b. Direct labor is paid in the month in which it is incurred. Direct labor for each month of the second quarter is budgeted as follows: April May June $ 48,000 58,000 $73,000 C. Manufacturing overhead is estimated to be 140% of direct labor cost each month. This monthly estimate includes $31,000 of depreciation on the plant and equipment. All manufacturing overhead (excluding depreciation) is paid in the month in which it is incurred. d. Monthly operating expenses for March through June are projected to be as follows: March April May June $75,000 85,000 $ 88,00091,000 Monthly operating expenses are paid in the month after they are incurred. Monthly operating expenses include $11,000 for monthly depreciation on administrative offices and equipment, and $3,400 for bad debt expense. e. The company plans to pay $5,000 (cash) for a new server in May f. The company must make an estimated tax payment of $12,500 on June 15 Print Done