1. Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.Estimated Machine hours: 85000Estimated variable manufacturing overhead: 5.55 per machine hourEstimated total fixed manufacturing overhead: 951888Compute the company s predetermined overhead rate2. Matuseki Corporation is preparing its cash budget for October. The budgeted beginning cash balance is 17000. Budgeted cash receipts totals 187000 and budgeted cash disbursements totals 177000. The desired ending cash balance is 40000. The company can borrow up to 120000 at any time from the local bank with interest not due until the following month.Prepare the company s cash budget for October in good form3. Bella Lugosi holdings INC has collected the following operating information below for its current month s activity. Using the information prepare a flexible budget analysis to determine how well BLH performed in terms of cost control. Actual cost incurred Static BudgetActivity level (in units) 5250 5178Variable cost: Indirect material 24182 23476Utilities 22356 22674Fixed Cost: Administration 63450 65500Rent 65317 639044. McMullen Co. manufactures automatic door openers. The company uses 15000 electronic hinges per year as a component in the assembly of the openers. You have been engaged by the McMullen to assist with an evaluation of whether the company should continue producing the hinges or purchase them from an outside vendor.The accounting Department provided the following detail regarding the annual cost to produce electronic hinges.Direct material: 54000Direct labor: 60000Variable manufacturing overhead: 36000Fixed manufacturing overhead: 90000Total cost: 240000The procurement department provided the following supplier pricing:Supplier A price per hinge: 11.00Supplier B price per hinge: 10.75Supplier C price per hinge: 10.50The supplier pricing was obtained in response to a formal request for proposal (RFP). Procurement has determined these suppliers meet McMullens technical specifications and quality requirements. If McMullen stops producing the part internally 10% of the manufacturing overhead would be eliminated.Prepare a make or buy analysis showing the annual advantage or disadvantage of accepting an outside supplier s offer5. Topple company produces a singe product. Operating data for the company and its absorption costing income statement for the last year is presented below:Units in beginning Inventory: 0Units produced: 9000Units sold: 7000Sales: 100000Less cost of goods soldBeginning inventory: 0Add cost of goods manufactured: 54000Goods available for sale: 54000Less ending inventory: 12000Cost of goods sold: 42000Gross margin: 58000Less selling and admin expenses: 28000Net operating income: 30000Variable manufacturing cost are 4$ per unit. Fixed factory overhead totals 18000 for the year. This overhead was applied at a rate of 2$ per unit. Variable selling and administrative expenses were 1$ per until sold.Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements.6. The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed year:Sales: 1150Raw Material inventory beginning: 15Raw material inventory ending: 40Purchased of raw material: 150Direct labor: 250Manufacturing overhead: 300Admin expenses: 500Selling expenses: 300Work in process inventory beginning: 100Work in process inventory ending: 150Finished goods Inventory beginning: 80Finished goods inventory ending: 120Use the above data to prepare (in thousands of dollars) a schedule of cost of goods manufactured and schedule of cost of goods sold for the year. In addition what is the impact on the financial statements if the ending finished goods inventory is overstated or understated?