The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

December. Or the remainder of the manu$/$acturing costs, $80\%$ are expected to be paid in the month in which they are incurred and the balance in the following month.

Required:

Prepare a monthly cash budget and supporting schedules for September, October, and November

Bridgeport Housewares Inc. Cash Budget

Cash Budget

Cash Budget For the Three Months Ending November $30$

On the basis of the cash budget prepared in part $(1),$ what recommendation should be made to the controller?Factory Overhead Cost Variance Report

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at $100\%$ of normal capacity of $8,400$ hours.

Line Item Description Amount Amount

Variable costs:

Indirect factory wages $$30,240$

Power and light $20,160$

Indirect materials $16,800$

Total variable cost $$67,200$

Fixed costs:

Supervisory salaries $$20,000$

Depreciation of plant and equipment $36,200$

Insurance and property taxes $15,200$

Total fixed cost $71,400$

Total factory overhead cost $$138,600$

During May, the department operated at $8,860$ hours, and the factory overhead costs incurred were indirect factory wages, $$32,400$; power and light, $$21,000$; indirect materials, $$18,250$; supervisory salaries, $$20,000$; depreciation of plant and equipment, $$36,200$; and insurance and property taxes, $$15,200.$

Required:

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on $8,860$ hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank.

Normal capacity for the month $8,400$ hrs$.$

Actual production for the month $8,860$ hrs$.$

Tiger Equipment Inc.

Factory Overhead Cost Variance Report$-$Welding Department

For the Month Ended May $31$

Line Item Description

Actual

Cost Budget

$($at Actual

Production$)$

Unfavorable

Variances

Favorable

Variances

Variable factory overhead costs:

Indirect factory wages $Indirect factory wages

$Indirect factory wages

$Indirect factory wages

$Indirect factory wages

Power and light Power and light

Power and light

Power and light

Power and light

Indirect materials Indirect materials

Indirect materials

Indirect materials

Indirect materials

Total variable cost $Total variable cost

$Total variable cost

Fixed factory overhead costs:

Supervisory salaries $Supervisory salaries

$Supervisory salaries

Depreciation of plant and equipment Depreciation of plant and equipment

Depreciation of plant and equipment

Insurance and property taxes Insurance and property taxes

Insurance and property taxes

Total fixed cost $Total fixed cost

$Total fixed cost

Total factory overhead cost $Total factory overhead cost

$Total factory overhead cost

Total controllable variances $Total controllable variances

$Total controllable variances

blank blank $$-$ Select $-$

blank

Volume variance$$favorable:

Excess hours used over normal at the standard rate for fixed factory overhead blank blank Excess hours used over normal at the standard rate for fixed factory overhead

blank

blank blank $$-$ S