1. Sparks Corporation has a cash balance of $15,300 on April 1. The company must maintain a minimum cash balance of $12,500. During April, expected cash receipts are $61,000. Cash disbursements during the month are expected to total $71,500. Ignoring interest payments, during April the company will need to borrow:
$4,800
$7,700
$12,500
$10,500
2. LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 4.2 hours of direct labor at the rate of $21.00 per direct labor-hour. Management would like you to prepare a Direct Labor Budget for June.
The budgeted direct labor cost per unit of Product WZ would be:
$88.20 per unit
$58.80 per unit
$21.00 per unit
$9.40 per unit