Sales for October November and December are expected to be R200000 R180000 and R220000 respectively for Ripken Company. All sales are…

    0

    Sales for October November and December are expected to be R200000
    R180000 and R220000 respectively for Ripken Company. All sales are on
    account (terms 2/15 net 30 days) and are collected 50 percent in the month of sale
    and 50 percent in the following month. One-half of all sales discounts are taken on
    the average. Materials are purch
    Materials used 40000 36000 44000
    Salaries 70000 68000 72000
    Maintenance and repairs 18000 18000 18000
    Depreciation 36000 36000 36000
    Utilities and other 14000 14000 14000
    Dividends paid -0- 10000 -0-
    Payment on bonds 8000 8000 8000
    Required:
    Using the given information prepare a cash budget for November. (6)
    Question 7: Control systems (14 marks)
    Timothy SA. uses a flexible budget for overhead costs. The company expects to
    produce 40000 units of the product it manufactures. Each unit requires 0.40 direct
    labour hours. The cost formulas for each of the four overhead items (where X is
    measured in direct labour hours) is as follows:
    Cost Formula
    Power 0.40X
    Maintenance R15000 + 0.60X
    Indirect labour R18000 + 2.50X
    Rent R20000
    Required:

                                                                                                                                      Order Now