8.( TCO F) Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $ 54,000. Budgeted cash receipts total $ 127,000 and budgeted cash disbursements total $ 99,000. The desired ending cash balance is $ 100,000. The company can borrow up to $ 150,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company ' s cash budget for October in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.( Points: 25) 9.( TCO F) Bella Lugosi Holdings, Inc.( BLH), has collected the following operating information for its current month ' s activity. Using this information, prepare a flexible budget analysis to determine how well BLH performed in terms of cost control.
Actual Costs Incurred Static Budget
Activity level( in units) 5,250 5,178 Variable costs: Indirect materials $ 24,182 $ 23,476 Utilities $ 22,356 $ 22,674
Fixed costs: Administration $ 63,450 $ 65,500 Rent $ 65,317 $ 63,904( Points: 25) 10.( TCO H) Lindon Company uses 10,000 units of Part Y each year as a component in the assembly of one of its products. The company is presently producing Part Y internally at a total cost of $ 100,000 as follows. Direct materials............................................... $ 20,000 Direct labor...................................................... 40,000 Variable manufacturing overhead...................... 16,000 Fixed manufacturing overhead....................... 24,000 Total costs....................................................... 100,000 An outside supplier has offered to provide Part Y at a price of $ 10 per unit. If Lindon stops producing the part internally, one third of the fixed manufacturing overhead would be eliminated.