1. Speedy Runner manufactures running shoes and anticipates the following manufacturing overhead costs to occur over the next year:

Indirect Materials Cost $4,000

Indirect labor $70,000

Utilities $42,000

Insurance $7,000

Taxes $8,000

Equipment Depreciation $20,000

What will Speedy Runner's budget be for cash outlays related to manufacturing overhead?

2. Lough Company prepared the following purchasing budget:

Month	Budgeted Purchases
June	$36,000
July	$49,000
August	$39,400
September	$50,000
October	$48,500

All purchases are paid as follows: 5% two months after the purchase, 35% in the following month and 60% in the month of purchase.

What are the cash outlays in October to account for the September purchases at the Lough Company?

3. The Distribution Corporation collects 35% of the sales of a month in the month of the sale, 45% in the month following the sale and 20% in the second month following the sale. Budgeted sales for the next four months are:

budgeted sales april	$120,000
May Budgeted Sales	$150,000
June budgeted sales	$230,000
budgeted sales july	$170,000

What will be the amount of cash to be raised in July ?

Answer rating: 100% (QA)

1 Budget for Cash Outlays Related to Manufacturing Overhead The budget for cash outlays related to manufacturing overhead will be the total of all the ... View the full answer