The Froduction Department of Hruska Corporation has submitted the following forecast of units to be produced by quaner for the upcoming fiscal year 1st Quarter 20 Quarter 3rd Quarter 11,200 10,200 12,200 41h Quartar | 13.200 Units to be produced Each unit requires 0.25 direct labortours and direct laborers are paid $13.00 per hour. In addition, the variable manufacturing overhead rate is $1.401 por direct lebar-hour. The food manufacturing one tead is $12.000 por quarter. The only pancash clement of manufacturing overhead is depreciation which is $32,000 por quarter Required: 1. Prepare the company's direct labor budget for the upcoming fiscal year, assuring that the direct labor workforce is adjusted each quarter to raich the number of houre required to produce the forecasted number of unils produced. (Round "Direct labor time per unit hours)" and "Direct labor cast per hour answers to 2 decimal places.) Hruska Corporation Direct Labor Budget 11 uarter) 2nd Quarter and Quarter 4th Quarter YRA Required production in urits Direct laborime per unt (hours) Total direct labor hours needed Toral direct laber cast 2. Prepare the company's manufacturing overhead budget Hruska Corporation Manufacturing Overhead Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Variable manufacturing overhead Fixed manufacturing overhead Talal interfer:rigy is: Lue depreciation Cash Cibe for manufacturing Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Minden Company Balance Sheet April 30 Assets Cash S 18.500 Accounts receivable 58,500 Inventory 40.750 Buildings and equipment, net of depreciation 202.000 Total assets $ 319.750 Liabilities and Stockholders' Equity Accounts payable S 67,750 Note payable 15.800 Common stock 180,000 Retained earnings 56.200 Total liabilities and stockholders' equity S S 319.750 The company is in the process of preparing a budget for May and has assembled the following data: a. Sales are budgeted at $263,000 for May. Of these sales $78,900 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May. b. Purchases of Inventory are expected to total $193,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May. c. The May 31 inventory balance is budgeted at $63.000. d. Selling and administrative expenses for May are budgeted at $73,200, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $4,650 for the month. e. The note payable on the April 30 balance sheet will be paid during May, with $210 in interest. (All of the interest relates to May.) f. New refrigerating equipment costing $11,900 will be purchased for cash during May. g. During May, the company will borrow $27,200 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year. Required: 1-a. Prepare a schedule of expected cash collections from sales and a schedule of expected cash disbursements for merchandise purchases.. Answer is complete and correct. Schedule of Expected Cash Collections Cash sales-May $ 78.900 Collections on account receivable: April 30 balance 58,500 May sales 92.050 S Total cash receipts 229,450 1-b. Prepare a cash budget for May. (Cash deficiency, repayments and interest should be indicated by a minus sign.) Answer is complete but not entirely correct. s 18,500 229,450 247,950 Minden Company Cash Budget For the Month of May Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchase of inventory Seling and administrative expenses Purchases of equipment Total cash disbursements Excess (deficiency of cash available over disbursements Financing Borrowing note Repayments Intro Total financing Ending cash balance 114,950 73,200 11,900 246,060 1,890 27,200 (15.800) (210) 27,200 $ 29,090 2. Prepare a budgeted income statement for May. 3 Answer is complete but not entirely correct. Minden Company Budgeted Income Statement For the Month of May Sales Cost of goods sold: Purchases 193,000 Beanieinwanted 40.750 $ 263.000 Minden company Budgeted Income Statement For the Month of May Sales $ 263,000 193,000 x Cost of goods sold: Purchases Beginning inventory Ending inventory Cost of goods sold Other expenses Gross loss Selling and administrative expenses Net operating loss 40,750 233,750 63,000 x X 170,750 92,250 x x 77,850 14,400 210 14,190 Interest expense Net income $ 3. Prepare a budgeted balance sheet as of May 31. % Answer is complete but not entirely correct. Minden Company Budgeted Balance Sheet May 31 Assets Cash $ 6,710 X Accounts receivable 92,050 63,000 Inventory Buildings and equipment, net of depreciation 209,250 371,010 Total assets S Liabilities and Stockholders' Equity Accounts payable $ Note payable 115,800 27 200