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1. Units to be produced annually: 200,000 tins

Direct labor: 1 hour per 100 tins

Variable overhead costs per direct labor hour:

Indirect materials $2.05

Indirect labor $1.20

Utilities $9.25

Maintenance $3.50

Fixed overhead costs per quarter:

Insurance $3,000

Depreciation $2,000

Rent $12,000

What is the budgeted total manufacturing overhead for the year? (5 points)

2. Sales: 60,000 tins per quarter

Variable costs per dollar of sales: sales commissions 5%, delivery expense .5%, and advertising 1.5%.

Fixed costs per quarter: sales salaries $40,000, office rent $1,500, utilities $1,200, and repairs expense $200.

Selling price: $10 per tin

What is the budgeted total selling and administrative expenses for the quarter? (5 points)

3. Sales are 30% cash and 70% on credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale. Sales were December $180,000; January $220,000; February $250,000; and March $300,000.

What was total cash received in March? (5 points)