Derry Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Derry Manufactu $($Click the icon to view the data.$)$

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Read the requirements

$\backslash$table$[[$Month$,$Quarter$],[$January$,$February,March$],[$$$,12,600,$$$,13,762,12,922,39,284],[,6,500,,6,500,6,500,19,500],[,2,900,,2,900,2,900,8,700],[$$$,22,000,,23,162,22,{322}^{TT},67,484]]$

g$.$ Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Derry Manufacturing will purchase equipment for $$5,800($cash$),$ while February's c expenditure will be $$11,600$ and March's cash expenditure will be $$15,800.$

h$.$ Operating expenses are budgeted to be $$1\mathrm{.}20$ per unit sold plus fixed operating expenses of $$1,400$ per month. All operating expenses are paid in the month in which they are incurred. No depreciation is included in these figures.

i$.$ Depreciation on the building and equipment for the general and administrative offices is budgete to be $$4,600$ for the entire quarter, which includes depreciation on new acquisitions

j$.$ Derry Manufacturing has a policy that the ending cash balance in each month must be at least $$4,400.$ It has a line of credit with a local bank. The company can borrow in increments of $$1,00c$ at the beginning of each month, up to a total outstanding loan balance of $$150,000.$ The interest rate on these loans is $1\%$ per month simple interest $($not compounded$).$ The company would pay down on the line of credit balance in increments of $$1,000$ if it has excess funds at the end of the quarter. The company would also pay the accumulated interest at the end of the quarter on the funds borrowed during the quarter.

k$.$ The company's income tax rate is projected to be $30\%$ of operating income less interest expense. The company pays

Cash payments for manufacturing overhead

Requirement $7.$ Prepare a cash payments budget for operating expense

Derry Manufacturing

Cash Payments for Operating Expenses Bud

For the Quarter Ended March $31$

Variable operating expenses

Fixed operating expenses

$\backslash$table$[[$January$,$Month$],[,],[,],[,]]$

Cash payments for operating expenses

Video

Requirements

$6.$ Prepare a cash payments budget for manyflacturing overhead costs

$7.$ Prepare a cash payments budget for operating expenses.

$8.$ Prepare a combined cash budget.

$9.$ Calculate the budgeted manufacturing cost per unit $($assume that fixed manufacturing overhead is budgeted to be $$0\mathrm{.}90$ per unit for the year$)$

$10.$ Prepare a budgeted income statement for the quarter ending March $31.($Hint Cost of goods sold $=$ Budgeted cost of manufacturing one unit $x$ Number of units sold.$)$

Data table

$\backslash$table$[[$Current Assets as of December $31,,],[$Cash$,s,4,460],[$Accounts receivable, net,$S,46,000],[$Inventory$,$$$,15,400],[$Property$,$ plant, and equipment, net,$$,123,000],[$Accounts payable,$s,43,000],[$Capital stock,$$,126,000],[$Retained earnings,$$,22,700]]$