Waterways Corporation has recenty acpuired a smal mancfactur ing operation in Beitish Columbia that produces one of its more popular iseins. This plant will provide these units for resale in retail hardware stores in British Columbia and Alberta. Because the budget peepared by the plant was incomplete. Joedan Leigh, Waterwars' CFO, was sent to B.C. to coversee the plant's budgeting process for the socond quarter of 2023. Jordan asked the various managers to collect the following information for preparing the second-quarter budzet. Based on the experience in the home plant, Jordan has suggested that the B.C. plant keep 10% of the next month's unit sales in ending irventory. The plant has contracts with some of the major home hardware giants, so all sales are on account: so\% of the accounts receivable is collected in the month of sale, and the balance. is collected in the month after sale. This was the same collection pattern as the previous year. The new plant has no bad debts. Direct Materials The combined quantity of direct materials (consisting of metal. plastic, and rubber) used in each unit is 1.10kg. Metal, plastic, and rubber together amount to 51.50 per kg. inventory of combined direct materials on March 31 consbted of 13.145kg. This plant likes to keep 10\% of the mater iab needed for the next month in its ending imventory. Fifty percent of the payables is paid in the month of purchase, and 50% is paid in the month after purchaly Accounts payable on March 31 will total $120000. Direct Labour Labour requires 15 minutes per unit for completion and is paid at an average rate of $14 per hour Question 1 of 1 Manufacturing Overhead \begin{tabular}{lr|r|} \hline Indirectmaterials & $0.40 & per labour hour \\ \hline Indirectlabour & $0.60 & per labour hour \\ \hline Utilities & $0.50 & per labour hour \\ \hline Maintenance & $0.30 & per labour hour \\ Salaries & $43.800 & pus month \\ \hline Depreciation & $14.800 & permonth \\ \hline Property taxes & $2.450 & permonth \\ Insurance & $1.250 & permonth \\ \hline Janitorial & $2.400 & permonth \end{tabular} Selling and Administrative Other Information The cash balance on March 31 will be $124,500, but Waterways has decided it would like to maintain acast balance of at least $400,000 beginning on Aprit 30 . The company has an open line of credit with its bank. The terms of the agreement require borrowing to be in $1.000 increments at 2% interest. Borrowing is considered to be on the first day of the month and repayments and interest payments are on the last day of the month In May, $690,000 of new equipment to update operations will be purchased. Three months insurance is prepsid on the first day of the frest monthof the puarter For the second quarter of 2023, prepare a sales budget. A. Sylre Hodevt C. Frodectibe Bedert D. Direct Mtaterink Bedent Acril Areil Mar Mar Hane Thetal Paywain
