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Q.No. 2 Abuhatim LLC has given the following particulars. You are required to prepare a cash budget for the three months ending 31" December 2019 Months Sales Materials Wages Overheads (OMR) (OMR) (OMR) (OMR) August 20000 10200 3800 1900 September 21000 10000 3800 2100 October 23000 9800 4000 2300 November 25000 10000 4200 2400 December 30000 10800 4500 2500 Credit terms are 1. Sales /Debtors 10% sales are on Cash , 50% of the credit sales are collected in next month and the balance in the following month 2. Creditors - materials 2 months Wages 1 month Over heads - 1 month 3. Cash balance on 19 October is expected to be Ro.8000 4. A machinery will be installed in August at a cost of RO.100000, the monthly instalment of R0.5000 is payable from October onwards 5. Dividend at 10% on preference share capital RO.300,000 will be paid on 1" December 2019 6. Advance to be received for the sale of vehicles RO 20000 in December 7. Income tax tobe received in December RO.5000 Q.No. 3 Deep Manufacturers information is provided for the production of two product lines named as pen and pencil of a Deep manufacturers. Activity Cost (OMR) Setup 250,000 Machine maintenance 75,000 Total indirect manufacturing costs 325,000 Particulars Product-pen Product-pencil Total OMR) Direct labor hou 7000 3.000 10,000 Number of setups 70 30 100 Number of machine hours 1,200 3,800 5,000

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