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FIGURE 1 shows part of a control system used to maintain the water level in a sump between the levels high and low. Two transducers (HIGH and LOW) are used to monitor the level. The water is pumped out by two pumps, PI and P2.
The water level in the sump is to be controlled as follows:
• If the level reaches high one pump will start to pump out. • If the level does not reach low within about 30 seconds, the second pump will come into action. If the level does reach low before 30 second pumping should stop. • If the level does not reach low within about 30 seconds of the second pump starting, an alarm is given. The alarm is sounded until the level reaches low. If the level does reach low before 30 seconds the pumping should stop. • The pumps will stop when low is detected. • To give even loading of the pumps they are to be used alternately, e.g. if on one pump cycle P I starts first and P2 is the ‘back up’ then on the next cycle P2 will start first and P1 is the ‘back up’.

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FG is preparing its cash budgets for January, February and March. Budgeted data are as follows: November December January February March Sales (units) 750 800 800 850 900 Production (units) 800 800 850 900 950 Direct labour and variable overheads incurred $48,000 $48,000 $51,000 $54,000 $56,000 Fixed overheads incurred (excluding depreciation) $20,000 $20,000 $20,000 $20,000 $20,000 The selling price per unit is $200. The purchase price per kg of raw material is $25. Each unit of finished product requires 2 kg of raw materials which are purchased on credit in the month before they are used in production. Suppliers of raw materials are paid one month after purchase. All sales are on credit. 80% of customers, by sales value, pay one month after sale and the remainder pay two months after sale. The direct labour cost, variable overheads and fixed overheads are paid in the month in which they are incurred. Machinery costing $100,000 will be delivered in February and paid for in March. Depreciation, including that on the new machinery, is as follows: Machinery and equipment $3,500 per month Motor vehicles $800 per month The opening cash balance at 1 January is estimated to be $15,000. Required: Prepare a cash budget for each of the three months January, February and March.

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