Cash disbursements for manufacturing overhead Sycamore Corp. bases its manufacturing overheadbudget on budgeted direct labor hours. The directlabor budget indicates that 7,500 direct labor hourswill be required in July. The variable overhead rate is$4.20 per direct labor hour. The company'sbudgeted fixed manufacturing overhead is $95,000per month, which includes depreciation of $8,200.All other fixed manufacturing overhead costsrepresent current cash flows.The July cash disbursements for manufacturingoverhead on the manufacturing overhead budgetshould be

Explanation of Cash Disbursement for Manufacturing Overhead:Cash disbursement for manufacturing…

Answered: Sycamore Corp. bases its manufacturing…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 5P

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Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
Mesa Aquatics, Inc. estimated direct labor hours as 1,900 in quarter 1, 2,000 in quarter 2.2,200 in quarter 3, and 1,800 in quarter 4. a sales and administration budget using the information provided.
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
A company estimates its manufacturing overhead will be $840,000 for the next year. What is the predetermined overhead rate given each of the following Independent allocation bases? Budgeted direct labor hours: 90,615 Budgeted direct labor expense: $750000 Estimated machine hours: 150,000
Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,100 direct labor-hours will be required in August. The variable overhead rate is $1.90 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,370 per month, which includes depreciation of $8.980. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Cholce $9.390 $104.880 $13,860 $13,490
The Tansen Manufacturing overhead budget is based on budgeted direct labor-hours. The direct labor budget indicates that 9,500 direct labor-hours will be required in September. The variable overhead rate is $6.00 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $145,000 per month, which includes depreciation of $32,500. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. What should be Tansen Manufacturing’s predetermined overhead rate for September? A. $6.00 B. $18.90 C. $21.26 D. $16.00
The manufacturing overhead budget of Reigle Corporation is based on budgeted direct labor-hours. The February direct labor budget indicates that 5 direct labor-hours will be required in that month. The variable overhead rate is $4.7 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $82,610 per month, which includes depreciation of $17,070. All other fixed manufacturing overhead costs represent current cash flows. Required: 1. Determine the cash disbursements for manufacturing overhead for February 2. Determine the predetermined overhead rate for February. Note: Round your answer to 2 decimal places. 1. Cash disbursements for manufacturing overhead 2. Predetermined overhead rate
Haylock Incorporated bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,300 direct labor-hours will be required in August. The variable overhead rate is $1.40 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,320 per month, which includes depreciation of $9,030. All other fixed manufacturing overhead costs represent current cash flows. The August cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $11,620 $102,910 $91,290 $111,940
Grag Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7.100 direct labor-hours will be required in January. The variable overhead rate is $1.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $109,250 per month, which includes depreciation of $22.950. All other fixed manufacturing overhead costs represent current cash flows. The January cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: O $102,150 $122,030 $99,000 O $95,850
Trini Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 9,500 direct labor-hours will be required in May. The variable overhead rate is $2.80 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $114,440 per month, which includes depreciation of $10,310. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be: Multiple Choice $26,600. $141,040. $130,730. $104,130.

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