Question 1 - Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.
Estimated machine hours 85,000
Estimated variable manufacturing overhead $5.55 per machine hour
Estimated total fixed manufacturing overhead $951,888
Required: Compute the company's predetermined overhead rate.
Question 2 - Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $17,000. Budgeted cash receipts total $187,000 and budgeted cash disbursements total $177,000. The desired ending cash balance is $40,000. The company can borrow up to $120,000 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.