Manufacturing Overhead $($MO$)$ Assumptions $$ Variable overhead rate$/$direct labor hour $12\mathrm{.}50$ Fixed MO per quarter $ $171,180$ Fixed MO per month $$57,060$ MO Depreciation per quarter $$30,000$ Depreciation per month $$10,000$ SGA Assumptions $$ Variable SGA per unit $$4\mathrm{.}25$ Variable shipping per unit $$2\mathrm{.}60$ Advertising expenses per month $$46,500$ Executive salaries per month $$55,800$ SG&A Depreciation expense per month $$2,500$ Rent expense per month $ $101,515$ Insurance expense per month $$35,530$ Cash Budget Assumptions $$ Beginning Cash Balance $$1,250,000$ Dividends $$38,500$ Minimum Cash Balance $ $800,000$ Annual Interest Rate $5\mathrm{.}5\%$ Monthly Interest Rate $0\mathrm{.}00458$ Other Balance Sheet Data $$ Land $ $500,000$ Building Improvements $$2,250,000$ Common Stock $$4,000,000$ Retained Earnings $ $-$ Building Improvements$$ $$2,250,000$ Useful life $15$ Annual Dep $ $150,000$ Monthly Dep $$12,500$ Portion of remodel for Admin Offices $20\%$ Portion of remodel for Manufacturing$80\%$ Selling, General & Administrative Depreciation $$2,500$ Manufacturing Overhead Depreciation $$10,000\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline Sales Budget & Assumptions & Jan & Feb & Mar & Quarter $1\backslash \backslash$

$\backslash$hline Budgeted sales in units & & & & & $\backslash \backslash$

$\backslash$hline Selling price per unit & & & & & $\backslash \backslash$

$\backslash$hline Total Sales & & & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline Schedule of Cash Collections & & Jan & Feb & Mar & Quarter $1\backslash \backslash$

$\backslash$hline Credit Sales & & & & & $\backslash \backslash$

$\backslash$hline Cash Sales & & & & & $\backslash \backslash$

$\backslash$hline January sales & & & & & $\backslash \backslash$

$\backslash$hline February sales & & & & & $\backslash \backslash$

$\backslash$hline March sales & & & & & $\backslash \backslash$

$\backslash$hline Total cash collections & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{6\}\{|$c$|\}\{\}\backslash \backslash$

$\backslash$hline Accounts Receivable Balance at end of Quarter $1$ & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Beginning Accounts Receivable Balance$\}$ & & & & $\backslash \backslash$

$\backslash$hline Total credit sales for the quarter & & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Total credit sales collected during the quarter$\}$ & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Accounts Receivable at end of Quarter $1\}$ & & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

hint: The end of quarter desired ending inventory will not be the total of the three months.

hint: The ending balance of one period is the beginning balance of the next so March and the Quarter will have a different beginning inventory $\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Direct Labor Budget & Jan & Feb & Mar & Quarter $1\backslash \backslash$

$\backslash$hline Required production & & & & $\backslash \backslash$

$\backslash$hline Direct labor hours per unit & & & & $\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Total direct labor hours needed$\}$ & & & $\backslash \backslash$

$\backslash$hline Direct Labor cost per hour & & & & $\backslash \backslash$

$\backslash$hline Total Direct Labor Cost $($Round to the nearest whole dollar$)$ & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|$l$|\}$

$\backslash$hline Manufacturing Overhead Budget & Jan & Feb & Mar & Quarter $1\backslash \backslash$

$\backslash$hline Budgeted direct labor hours & & & & $\backslash \backslash$

$\backslash$hline Variable manufacturing overhead rate & & & & $\backslash \backslash$

$\backslash$hline Variable manufacturing overhead cost & & & & $\backslash \backslash$

$\backslash$hline Fixed manufacturing overhead & & & & $\backslash \backslash$

$\backslash$hline Total manufacturing overhead & & & & $\backslash \backslash$

$\backslash$hline Less: Depreciation & & & & $\backslash \backslash$

$\backslash$hline $=$ Cash disbursements for MO & & & & $\backslash \backslash$

$\backslash$hline & & & & $\backslash \backslash$

$\backslash$hline Total manufacturing overhead & & & & $\backslash \backslash$

$\backslash$hline Budgeted direct labor hours & & & & $\backslash \backslash$

$\backslash$hline Predetermined overhead rate & & & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$