Reference no: EM13567866

1.) Blue Lagoon Corporation is projecting a cash balance of $31,155 in its December 31, 2011, balance sheet. Blue Lagoon's schedule of expected collections from customers for the first quarter of 2012 shows total collections of $179,891. The schedule of expected payments for direct materials for the first quarter of 2012 shows total payments of $40,632. Other information gathered for the first quarter of 2012 is: sale of equipment $3,931, direct labor $69,726, manufacturing overhead $34,562, selling and administrative expenses $45,419 and purchase of securities $12,310. Blue Lagoon wants to maintain a balance of at least $24,741 cash at the end of each quarter.

Prepare a cash budget for the first quarter.

BLUE LAGOON CORPORATION Cash Budget For the Quarter Ended March 31, 2012

2.) Tye Company is preparing its manufacturing overhead budget for 2012. Relevant data consist of the following.

Units to be produced (by quarters): 11,700, 14,600, 13,400, 16,400.

Direct labor: Time is 1.2 hours per unit.

Variable overhead costs per direct labor hour: Indirect materials $0.6; indirect labor $1.1; and maintenance $0.5.

Fixed overhead costs per quarter: Supervisory salaries $34,100; depreciation $16,600; and maintenance $12,300.

Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. $2.58)

TYE COMPANY Manufacturing Overhead Budget For the Year Ending December 31, 2012

Variable Cost                                   Quarter 1                      Quarter 2                     Quarter3                        Quarter 4

Indirect Materials

Indirect Labor

Maintenance

Total Variable Cost

Fixed Cost

Supervisory Salaries

Depreciation

Maintenance

Total Fixed Cost

Direct Labor Hours

Manufacturing Overhead Rate Per Direct Labor Hour