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Question 1: Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $175,300 and budgeted cash disbursements total $204,000. The desired ending cash balance is $49,000, and the company borrows in increments of $500 only. The amount Mosbey Inc needs to borrow for June will be:
Question 2: Shuck Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 17,900 direct labor-hours will be required in May. The variable overhead rate is $1.25 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $100,550 per month, which includes depreciation of $8,800. All other fixed manufacturing overhead costs represent current cash flows. The May cash disbursements for manufacturing overhead on the manufacturing overhead budget should be
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