To prepare a master budget for April, May, and June of $2013,$ management gathers the following information.

a$.$

Sales for March total $22,200$ units. Forecasted sales in units are as follows: April, $22,200$; May, $16,000$; June, $19,800$; July, $22,200.$ Sales of $243,000$ units are forecasted for the entire year. The product$$s selling price is $$26\mathrm{.}00$ per unit and its total product cost is $$21\mathrm{.}80$ per unit.

b$.$

Company policy calls for a given month$$s ending raw materials inventory to equal $50\%$ of the next month$$s materials requirements. The March $31$ raw materials inventory is $4,310$ units, which complies with the policy. The expected June $30$ ending raw materials inventory is $4,300$ units. Raw materials cost $$20$ per unit. Each finished unit requires $0\mathrm{.}50$ units of raw materials.

c$.$

Company policy calls for a given month$$s ending finished goods inventory to equal $80\%$ of the next month$$s expected unit sales. The March $31$ finished goods inventory is $17,760$ units, which complies with the policy

d$.$

Each finished unit requires $0\mathrm{.}50$ hours of direct labor at a rate of $$18$ per hour.

e$.$

Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $$3\mathrm{.}00$ per direct labor hour. Depreciation of $$25,134$ per month is treated as fixed factory overhead.

f$.$

Sales representatives$$ commissions are $9\%$ of sales and are paid in the month of the sales. The sales manager$$s monthly salary is $$3,300$ per month.

g$.$

Monthly general and administrative expenses include $$15,000$ administrative salaries and $0\mathrm{.}6\%$ monthly interest on the long$-$term note payable.

h$.$

The company expects $25\%$ of sales to be for cash and the remaining $75\%$ on credit. Receivables are collected in full in the month following the sale $($none is collected in the month of the sale$).$

i$.$

All raw materials purchases are on credit, and no payables arise from any other transactions. One month$$s raw materials purchases are fully paid in the next month.

J$.$

The minimum ending cash balance for all months is $$50,000.$ If necessary, the company borrows enough cash using a short$-$term note to reach the minimum. Short$-$term notes require an interest payment of $1\%$ at each month$-$end $($before any repayment$).$ If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short$-$term notes payable balance.

K$.$ Dividends of $$13,000$ are to be declared and paid in May.

l$.$

No cash payments for income taxes are to be made during the second calendar quarter. Income tax will be assessed at $40\%$ in the quarter and paid in the third calendar quarter.

m$.$ Equipment purchases of $$133,000$ are budgeted for the last day of June.

Required:

Prepare the following budgets and other financial information as required. All budgets and other financial information should be prepared for the second calendar quarter, except as otherwise noted below. Round calculations up to the nearest whole dollar, except for the amount of cash sales, which should be rounded down to the nearest whole dollar:

$5.$ Factory overhead budget. $($Round Variable factoFactory overhead budget. $($Round Variable factory overhead rate answers to $2$

decimal places.$)$ry overhead rate answers to $2$ decimal places.$)$