Alya Sdn Bhd. manufactures and supplies granite pots and pans with glass lids to a company in Japan. The new manager, Rushdi, wants to monitor the quarterly budgets for the quarter ending 30th September 2021 to ensure the sales targeted can be executed as planned even with the current economic condition. The following information is available: Budgeted sales: РOTS PANS 60,000 units @RM100 each 40,000 units @RM125 each Budgeted inventories: Beginning 20,000 Ending 25,000 Pots Pans Direct material (Granite) Direct material (Glass) Direct material (Handles) 8,000 32,000 kg 29,000 kg 10,000 36,000 kg 32,000 kg | 7,000 units 6,000 units Standard variable costs: POTS PANS Direct materials: 5kg @RM8.00 3kg@RM5.00 1 @RM3.00 RM40.00 4kg @RM8.00 15.00 3kg@RM5.00 Granite RM32.00 Glass 15.00 Handles 3.00 Total materials Direct labour Variable manufacturing 58.00 47.00 2hours@RM12.00 24.00 3hours@RM16.00 48.00 overhead 2hours@RM1.50 3.00 3hours@RM1.50 4.50 Total 85.00 99.50 Variable manufacturing overhead cost is RM384,000, while fixed factory overhead is RM214,000 per quarter (including the non-cash expenditure of RM156,000) and is allocated on total units produced.

Alya Sdn Bhd. manufactures and supplies granite pots and pans with glass lids to a company in Japan. The new manager, Rushdi, wants to monitor the quarterly budgets for the quarter ending 30th September 2021 to ensure the sales targeted can be executed as planned even with the current economic condition. The following information is available: Budgeted sales: РOTS PANS 60,000 units @RM100 each 40,000 units @RM125 each Budgeted inventories: Beginning 20,000 Ending 25,000 Pots Pans Direct material (Granite) Direct material (Glass) Direct material (Handles) 8,000 32,000 kg 29,000 kg 10,000 36,000 kg 32,000 kg | 7,000 units 6,000 units Standard variable costs: POTS PANS Direct materials: 5kg @RM8.00 3kg@RM5.00 1 @RM3.00 RM40.00 4kg @RM8.00 15.00 3kg@RM5.00 Granite RM32.00 Glass 15.00 Handles 3.00 Total materials Direct labour Variable manufacturing 58.00 47.00 2hours@RM12.00 24.00 3hours@RM16.00 48.00 overhead 2hours@RM1.50 3.00 3hours@RM1.50 4.50 Total 85.00 99.50 Variable manufacturing overhead cost is RM384,000, while fixed factory overhead is RM214,000 per quarter (including the non-cash expenditure of RM156,000) and is allocated on total units produced.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?
The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
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Cloud Shoes manufactures recovery sandals and is planning on producing 12.000 units in March and 11,500 in April. Each sandal requires 1.2 yards if material, which costs $3.00 per yard. The companys policy is to have enough material on hand to equal 15% of next months production needs and to maintain a finished goods inventory equal to 20% of the next months production needs. What is the budgeted cost of purchases for March?
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
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Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?
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