uestion (1) 6 Marks The following information is budgeted for McCracken Plumbing Supply Corporation for next quarter May April DH 110,000 DH 130,000 DH 180,000 85,000 92,000 105,000 50,000 June Sales Merchandise Purchases Selling& Administrative 50,000 50,000 All sales at McCracken are on credit. Forty percent are collected in the month of sale, 58% in the month following the sale, and the remaining 2% are uncollectible. Merchandise purchases are paid in full the month following the month of purchase. The selling and administrative expenses above include DH 8,000 of depreciation on display fixtures and warehouse equipment. All other selling and administrative expenses are paid as incurred. McCracken wants to maintain a cash balance of DH 15,000. Any amount w this can be borrowed from a local bank as needed in increments of DH 1,000. All borrowings are made at month end. Required: Prepare McCracken's cash budget for May. McCracken expects to have DH 24,000 of cash on hand at the beginning of May Question (2) 5 Marks Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.61 direct labor-hours. The direct labor rate is DH 8.90 per direct labor-hour. The production budget calls for producing 2,600 units in June and 2,100 units in July. Required: Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. Question (3) 5 Marks Lark Art Company sells unfinished wooden decorations at a price of DH 15.00. The current profit margin is DH 5.00 per decoration. The company is considering taking individual orders and customizing them for sale. To finish the decoration the company would have to pay additional labor of DH 3.00, additional materials costing an average of DH 4.00 per unit and fixed costs would increase by DH 1,500. If the company estimates that it can sell 600 units for DH 25.00 each month, should they start taking the orders? Question (3) 4 Marks An unfinished desk is produced for DH 36.00 and sold for DH 65.00. A finished desk can be sold for DH 75.00. The additional processing cost to complete the finished desk is DH 6.65. Provide a differential analysis for further processing