Medi Exam Health Services Case

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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

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