47 Okay Co. Master Budget Input Section Sales Budget Expected unit sales in the first quarter January February March April May 8,800 6,100 8,200 5,400 6,200 Selling orice $ 57.00 Cash Collections Beginning Balance $ F Collected in month of sale 60% Collected in the month following sale 35% D Uncollectible amount 5% Production Budget 2 Desired ending inventory s Beginning Inventory $ % of next month's 20% sales units 14 s Raw Materials Budget 26 Raw materials per unit 7 pounds 27 Cost per pound $ 0.56 28 Desired ending inventory 10% 29 Beginning inventory pounds 30 31 Cash payments 32 Beginning balance $ 33 Paid in month of sale 60% 34 Paid in the month following sale 40% 35 36 Direct Labor Budget 37 Direct labor hours per unit 30 Direct labor cost per hour 074 $ 14 39 40 Manufacturing Overhead Budget 41 42 43 44 Variable Manufacturing Overhead Rate Fixed Manufacturing Overhead Rate Depreciation 45 Selling and Administrative Expense Budget, S 3.20 per hour $ 91,000 per month $ 15,000 per month 46 Variable Selling & Admin Rate 47 Fixed Selling & Admin Rate 48 Depreciation $ 1.10 per unit $. 62,000 per month $ 8,000 per month 49 so Cash Budget 51 Beginning balance $ 30,000 52 Dividends $ 34,000 first month 53 Purchase of equipment $ 114,000 second month 54 Purchase of equipment $ 112,000 third month 55 Interest Rate 18% 56