Buckhorn Corporation bases its predetermined overhead rate on the estimated

1. Buckhorn Corporation bases its predetermined overhead rate on the estimated
machine hours for the upcoming year. Data for the upcoming year appear
below.

Required:

Compute the company's predetermined overhead rate.

2. Payment Inc. is preparing its cash budget for February. The budgeted beginning
cash balance is $27,000. Budgeted cash receipts total $136,000 and budgeted cash
disbursements total $128,000. The desired ending cash balance is $50,000. The
company can borrow up to $110,000 at any time from a local bank, with interest
not due until the following month.

Required:

Prepare the company's cash budget for February in good form. Make sure to indicate what
borrowing, if any, would be needed to attain the desired ending cash
balance.