Master Budget Case, 50 Points Required: Prepare the budgets shown below using Microsoft Excel. Be sure to use links and formulas as much as possible. Do not prepare the budgets by hand and then merely input the numbers into Excel. Make sure to adjust the width of your columns so your numbers are readable rather than seeing a row of the ##### symbols. You should check print preview. You may place more than one budget on a page, but each budget should be contained on one page rather than continuing at the top of another page. Bring a printout of your budgets to class. While you will need information from months that are not a part of the third quarter, your budgets should NOT show the information from months that are not included …show more content…
Blanco Company buys gizmo on account. It pays 40 percent of its purchases in the month of purchase and it pays the remaining 60 percent of its purchases in the month after purchase. Blanco Company expects to have $1,000,000 in accounts payable on July 1, 2011, that it expects to pay in full in July 2011. Note that this beginning amount is to be taken as a given. It may not conform to percentages that you are to use to calculate budgeted accounts payable and payments on accounts payable. Blanco Company uses eight (8) direct labor hours to make each unit of the White Gadget. The average direct labor rate is $17.50 per hour. Workers are paid in the same month in which they earn their wages. Blanco Company estimates that its variable manufacturing overhead (all requiring cash expenditures) is $32 per direct labor hour. The total fixed manufacturing overhead of $1,881,120 per month includes depreciation on the factory building of $120,000 per month and depreciation on the factory equipment of $30,000 per month for total depreciation of $150,000 per month. (Thus, the cash spent for fixed manufacturing overhead is $1,731,120 ($1,881,120 – $120,000 – $30,000) per month.) Cash disbursements for manufacturing overhead occur in the same month in which the company incurs the cost. Be sure to show the calculation of the average predetermined overhead rate for the quarter as a whole only—total budgeted manufacturing overhead cost
1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.
Q2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) was allocated to planned production? What was the actual per unit cost of production and shipping?
14. If 11,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production?
Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.
occurred on Sunday. She states she was seen by the “eye doctor earlier today” and
5. How would you identify timescales, priorities and financial resources when preparing a budget? [2.3]
If Marlene Herbert were to discontinue place mats, he would miss $270,000 that will go toward Mendel paper company fixed cost. The company currently has a plant overhead that is estimated at $420,000 for the quarter. In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000. This draws the company to a total fixed cost of $538,000. If Marlene Herbert were to discontinue the second highest contributor to the fixed cost, he would need to increase the volume of computer paper and lower material cost to help pull the contribution margin of the lowest product up to help support the lost of a whole product line.
2.) For each expense that is variable with respect to revenue hours, calculate the cost per revenue hour.
Webmasters.com has developed a powerful new server that would be used for corporations’ Internet activities. It would cost $10 million at Year 0 to buy the equipment necessary to manufacture the server. The project would require net working capital at the beginning of each year in an amount equal to 10% of the year's projected sales; for example, NWC0 = 10%(Sales1). The servers would sell for $24,000 per unit, and Webmasters believes that variable costs would amount to $17,500 per unit. After Year 1, the sales price and variable costs will increase at the inflation rate of 3%. The company’s
3. For each of the individual overhead accounts at Bridgeton, do you believe the given cost is variable, fixed, or something else? Why? (Use information or evidence from the case to support your evaluation, if possible. For most of these costs, there is no single right answer from the case information, so the goal is to come up with a reasonable estimate.)
The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:
Peter’s Peripherals assembles multimedia upgrade kits --- sets of components for adding sound and video to desktop computers. The demand for their kits for the next four quarters is estimated in the table below. Unit manufacturing cost for each kit is $160. Holding costs on each kit is $80 per quarter. Any kit that must be delivered late is assessed a backorder cost of $120. Each worker is capable of finishing 10 kits per quarter. If the company chooses to vary work force levels, it will incur costs of $400 for each additional worker; $600 for each termination. The company currently has 28 employees.
Based on the master budget, there have something wrong and unclear. All the numbers are the same, evenly quarter two have more sale than other quarter, at least less 30% than quarter two. We can easy to recognize with a few changes and we can achieve a goal $1.000.000
Personal Budget Exercise – Excel Creating a spreadsheet track personal business expenses is an excellent use of Microsoft Excel. For this exercise, you will create a spreadsheet to enter a personal budget and track actual expenses for the year. You may choose to use real data or create a fictitious budget using a monthly income amount of $2,500. Here are suggested budget categories if you are not using a real budget. At a minimum, you must have 9 budget categories: Housing (mortgage or rent) Utilities Car payment Insurance Student Loans Food Misc. Entertainment Gas Savings
2) The Assembly cost for the year in respect of a whole company is budgeted for £265,000. The current production requires a 40,320 direct labour hours with a 28,000 for machining. I have made an assumption that machining hours deducted from whole direct labour hours will give assembly hours (40,320-28,000=12,320 assembly hours). The next step is to calculate the assembly rate per hour £265,000/12,320 hours = £21.51, and the batch of chairs will require 10 hours of assembly, what