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Spinning Wheel Corp. has prepared the following budget information for the first three months of 2020:

Various Operating Budget Information	Jan	Feb	Mar
Sales Forecast (units of finished goods)	12,000 units	18,000 units	25,000 units
Production Budget (units of finished goods)	14,000 units	17,800 units	20,000 units
Material Purchases Budget (units of material)	30,500 units	25,000 units	36,000 units
Various Financial Budget Information	Jan	Feb	Mar
Sales	$1,020,000	$1,530,000	$2,125,000
Selling & Admin. Expenses	$ 112,200	$ 168,300	$ 233,750
Under/(over) applied Fixed MO	$ 17,000	$ ( 100)	$ (10,000)
Taxes	$ 21,420	$ 32,130	$ 44,625

Manufacturing Unit Cost Assumptions:

(Direct Labor Hours is used as the cost driver for Manufacturing Overhead)

Materials: 6 units of material @ $7.00/unit	$42.00
Direct Labor: 1.5 hours @ $10.00/hour	$15.00
Variable Overhead: 1.5 hours @ $4.00/hour	$ 6.00
Fixed Overhead: 1.5 hours @ $3.00/hour	$ 4.50
Total Manufacturing Unit Cost	$67.50

Other Budget Assumptions:

• Monthly Fixed Manufacturing Overhead is $80,000 (includes $15,000 of depreciation). It also includes an accrual of $4,000 for annual maintenance to be performed in December.
• 20% of sales are collected in the month of sale- those paying in the month of sale receive a 3% discount. 78% of sales are collected in the month following the sale- 2% of sales are estimated to be noncollectable.
• 40% of Direct Material purchases are paid in the month of purchase- Spinning Wheel receives a 2% discount for paying in the month of purchase. The remaining 60% is paid in the month following the purchase.
• All other operating costs requiring payment are paid in the month of their incurrence.
• Selling & Administrative expenses contain $8,000 of depreciation.
• All income taxes for January, February, and March are to be paid in March.
• March Prepaid Asset activity:
  • $8,000 will expire and be charged to Selling & Administrative expenses (included in the $233,750). March beginning balance is $2,000 and ending balance is anticipated to be $9,000.

The above information is needed for the next 7 questions.

Using the Spinning Wheel budget information, what would March's disbursements/payments be for Selling & Administrative Expenses?

$217,750

$233,750

$225,750

$223,750

Using the Spinning Wheel budget information, what would March's disbursements/payments be for Direct Material purchases?

$203,784

$205,800

$252,000

$1,222,704

$1,234,800

Using the Spinning Wheel budget information, what would March's disbursements/payments be for Direct Labor?

Group of answer choices

$200,000

$250,000

$300,000

$375,000

Using the Spinning Wheel budget information, what would March's disbursements/payments be for Variable Manufacturing Overhead?

Group of answer choices

$150,000

$120,000

$100,000

$80,000

Using the Spinning Wheel budget information, what would March's disbursements/payments be for Fixed Manufacturing Overhead?

Group of answer choices

$65,000

$69,000

$80,000

$51,000

$61,000

Using the Spinning Wheel budget information, what would March's disbursements/payments be Prepaids?

Group of answer choices

$17,000

$3,000

$15,000

No Change

Using the Spinning Wheel budget information, what would March's cash receipts/collections be?

Group of answer choices

$425,000

$1,618,400

$1,605,650

$412,250

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