Digital Solutions Inc. uses flexible budgets that are based on the following data:

Sales commissions	7% of sales
Advertising expense	14% of sales
Miscellaneous administrative expense	$9,500 per month plus 6% of sales
Office salaries expense	$47,000 per month
Customer support expenses	$23,000 per month plus 32% of sales
Research and development expense	$76,000 per month

Prepare a flexible selling and administrative expenses budget for October for sales volumes of $500,000, $800,000, and $1,100,000. (Use Exhibit 5 as a model.) Enter all amounts as positive numbers.

Digital Solutions Inc.
Flexible Selling and Administrative Expenses Budget
For the Month Ending October 31
Total sales	$500,000		$800,000		$1,100,000
Variable cost:
CashOffice salaries expenseSales commissionsSupplies expenseWages expense
Advertising expenseCashOffice salaries expenseSupplies expenseWages expense
Miscellaneous administrative expenseOffice salaries expensePrepaid insuranceRent expenseWages expense
Customer support expensesRent expenseResearch and development expenseSupplies expenseWages expense
Total variable cost
Fixed cost:
Insurance expenseMiscellaneous administrative expenseRent expenseSupplies expenseWages expense
Insurance expenseOffice salaries expensePrepaid insuranceRent expenseWages expense
Customer support expensesInsurance expenseRent expenseSupplies expenseWages expense
Insurance expenseRent expenseResearch and development expenseSupplies expenseWages expense
Total fixed cost
Total selling and administrative expenses		$fill in the blank 40		$fill in the blank 41		$fill in the blank 42

Tobins Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for November:

	Units
	12" Pizza		16" Pizza
Budgeted production volume	78,000		58,000

There are three direct materials used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:

		12" Pizza		16" Pizza
Direct materials:
	Dough	0.55	lb. per unit	0.80	lbs. per unit
	Tomato	0.25		0.40
	Cheese	0.70		1.20

In addition, Tobins has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, November 1	2,500	lbs.	800	lbs.	3,000	lbs.
Desired inventory, November 30	2,200	lbs.	1,000	lbs.	2,900	lbs.
Price per pound	$0.60		$0.70		$0.95

Prepare November's direct materials purchases budget for Tobins Frozen Pizza Inc. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Round your final answers to the nearest dollar.

Tobins Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending November 30
	Dough		Tomato		Cheese		Total
Units required for production:
12" pizza
16" pizza
Desired inventory, November 1Desired inventory, November 30Estimated inventory, November 1Estimated inventory, November 30Supervisor salaries
Total units available
Desired inventory, November 1Desired inventory, November 30Estimated inventory, November 1Estimated inventory, November 30Supervisor salaries
Total units to be purchased
Unit price	x		x		x
Total direct materials to be purchased		$fill in the blank 25		$fill in the blank 26		$fill in the blank 27		$fill in the blank 28

Rip Court Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:

	Junior	Pro Striker
Production budget	3,000 units	12,000 units

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

	Forming Department	Assembly Department
Junior	0.10 hour per unit	0.20 hour per unit
Pro Striker	0.15 hour per unit	0.25 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$20 per hour
Assembly Department	$16 per hour

Prepare the direct labor cost budget for March.

Rip Court Racket Company
Direct Labor Cost Budget
For the Month Ending March 31
	Forming Department	Assembly Department
Hours required for production:
Junior
Pro Striker
Total hours required
Hourly rate
Total direct labor cost	$fill in the blank 10	$fill in the blank 11