Bonnie has determined the following labor costs associated with her business

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Bonnie has determined the following labor costs associated with her business, Bonnie Manufacturing, Inc:
Sales commissions $5 per container
Administration $10,000 per month
Indirect factory labor $3 per container
Direct factory labor $5 per container

The following information applies to the upcoming month of April:

Budgeted production 1,200 containers
Budget sales 1,000 containers

a) What amount of budgeted labor cost would appear in the April selling, general, and administrative expense budget?
b) What would be Bonnie’s budgeted factory labor cost for April?

2. Furthermore, Bonnie has the following budget information for April:

Cash collections $876,000
April 1 cash balance 23,000
Cash disbursements 978,600

Bonnie has a policy of maintaining a minimum cash balance of $20,000 and borrows only in $1,000 increments. How much will Bonnie borrow in April?

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