The budget director of Royal British Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every

a. Estimated sales of William and Kate chairs for March

Eastern Domestic:

William 7,500 units at $800 per unit

Kate 6,000 units at $650 per unit

Western Domestic:

William 6,000 units at $700 per unit

Kate 7,500 units at $550 per unit

International:

William 4,250 units at $600 per unit

Kate 1,000 units at $350 per unit

b. Estimated inventories at March 1:

Direct materials: Finished products:

    Fabric 5,500 sq. yds.     William 1,500 units

    Wood 13,700 lineal ft.     Kate 300 units

    Filler 3,800 cu. ft.

    Springs 3,500 units

c. Desired inventories at March 31:

Direct materials: Finished products:

    Fabric 9,000 sq. yds.     William 2,000 units

    Wood 20,000 lineal ft.     Kate 900 units

    Filler 5,000 cu. ft.

    Springs 7,500 units

d. Direct materials used in production:

In manufacture of William:

    Fabric 4.0 sq. yds. per unit of product

    Wood 16 lineal ft. per unit of product

    Filler 3.8 cu. ft. per unit of product

    Springs 14 units per unit of product

In manufacture of Kate:

    Fabric 2.5 sq. yds. per unit of product

    Wood 12 lineal ft. per unit of product

    Filler 3.2 cu. ft. per unit of product

    Springs 10 units per unit of product

e. Anticipated purchase price for direct materials:

Fabric $9.00 per sq. yd. Filler $1.50 per cu. ft.

Wood 5.00 per lineal ft. Springs 2.00 per unit

f. Direct labor requirements:

William:

    Framing Department 2.5 hrs. at $15 per hr.

    Cutting Department 1.0 hr. at $12 per hr.

    Upholstery Department 3.0 hrs. at $16 per hr.

Kate:

    Framing Department 1.5 hrs. at $15 per hr.

    Cutting Department 0.5 hr. at $12 per hr.

    Upholstery Department 2.0 hrs. at $16 per hr.

Required:

1. Prepare a sales budget for March.

Royal British Furniture CompanySales BudgetFor the Month Ending March 31

Product and Area Unit Sales Volume Unit Selling Price Total Sales

William:

Eastern Domestic fill in the blank 290a74f2a04f00d_1 $fill in the blank 290a74f2a04f00d_2 $fill in the blank 290a74f2a04f00d_3

Western Domestic fill in the blank 290a74f2a04f00d_4 fill in the blank 290a74f2a04f00d_5 fill in the blank 290a74f2a04f00d_6

International fill in the blank 290a74f2a04f00d_7 fill in the blank 290a74f2a04f00d_8 fill in the blank 290a74f2a04f00d_9

Total fill in the blank 290a74f2a04f00d_10 $fill in the blank 290a74f2a04f00d_11

Kate:

Eastern Domestic fill in the blank 290a74f2a04f00d_12 $fill in the blank 290a74f2a04f00d_13 $fill in the blank 290a74f2a04f00d_14

Western Domestic fill in the blank 290a74f2a04f00d_15 fill in the blank 290a74f2a04f00d_16 fill in the blank 290a74f2a04f00d_17

International fill in the blank 290a74f2a04f00d_18 fill in the blank 290a74f2a04f00d_19 fill in the blank 290a74f2a04f00d_20

Total fill in the blank 290a74f2a04f00d_21 $fill in the blank 290a74f2a04f00d_22

Total revenue from sales $fill in the blank 290a74f2a04f00d_23

2. Prepare a production budget for March.

Royal British Furniture CompanyProduction BudgetFor the Month Ending March 31

William Units Kate Units

Expected units to be sold fill in the blank fb7d9efc6f8ffa9_1 fill in the blank fb7d9efc6f8ffa9_2

Plus desired inventory, March 31 Plus desired inventory, March 31

Total fill in the blank fb7d9efc6f8ffa9_6 fill in the blank fb7d9efc6f8ffa9_7

Less estimated inventory, March 1 Less estimated inventory, March 1

Total units to be produced fill in the blank fb7d9efc6f8ffa9_11 fill in the blank fb7d9efc6f8ffa9_12

3. Prepare a direct materials purchases budget for March.

Materials Purchases BudgetFor the Month Ending March 31

Fabric (sq. yds.)

Wood (lineal ft.) Direct Materials
Filler (cu. ft.)

Springs (units)

Total

Required units for production:

William fill in the blank 96a9d4f10053ffa_1 fill in the blank 96a9d4f10053ffa_2 fill in the blank 96a9d4f10053ffa_3 fill in the blank 96a9d4f10053ffa_4

Kate fill in the blank 96a9d4f10053ffa_5 fill in the blank 96a9d4f10053ffa_6 fill in the blank 96a9d4f10053ffa_7 fill in the blank 96a9d4f10053ffa_8

Plus desired inventory, March 31 Plus desired inventory, March 31 Plus desired inventory, March 31 Plus desired inventory, March 31

Total fill in the blank 96a9d4f10053ffa_14 fill in the blank 96a9d4f10053ffa_15 fill in the blank 96a9d4f10053ffa_16 fill in the blank 96a9d4f10053ffa_17

Less estimated inventory, March 1 Less estimated inventory, March 1 Less estimated inventory, March 1 Less estimated inventory, March 1

Total units to be purchased fill in the blank 96a9d4f10053ffa_23 fill in the blank 96a9d4f10053ffa_24 fill in the blank 96a9d4f10053ffa_25 fill in the blank 96a9d4f10053ffa_26

Unit price $fill in the blank 96a9d4f10053ffa_27 $fill in the blank 96a9d4f10053ffa_28 $fill in the blank 96a9d4f10053ffa_29 $fill in the blank 96a9d4f10053ffa_30

Total direct materials to be purchased $fill in the blank 96a9d4f10053ffa_31 $fill in the blank 96a9d4f10053ffa_32 $fill in the blank 96a9d4f10053ffa_33 $fill in the blank 96a9d4f10053ffa_34 $fill in the blank 96a9d4f10053ffa_35

Transcribed Image Text:4. Prepare a direct labor cost budget for March. Royal British Furniture Company Direct Labor Cost Budget For the Month Ending March 31 Framing Department Cutting Department Upholstery Department Total Hours required for production: William Kate Total Hourly rate Total direct labor cost

Question

The budget director of Royal British Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every

a. Estimated sales of William and Kate chairs for March

Eastern Domestic:
	William	7,500 units at $800 per unit
	Kate	6,000 units at $650 per unit
Western Domestic:
	William	6,000 units at $700 per unit
	Kate	7,500 units at $550 per unit
International:
	William	4,250 units at $600 per unit
	Kate	1,000 units at $350 per unit

b. Estimated inventories at March 1:

Direct materials:			Finished products:
Fabric	5,500	sq. yds.	William	1,500	units
Wood	13,700	lineal ft.	Kate	300	units
Filler	3,800	cu. ft.
Springs	3,500	units

c. Desired inventories at March 31:

Direct materials:			Finished products:
Fabric	9,000	sq. yds.	William	2,000	units
Wood	20,000	lineal ft.	Kate	900	units
Filler	5,000	cu. ft.
Springs	7,500	units

d. Direct materials used in production:

In manufacture of William:
Fabric	4.0	sq. yds. per unit of product
Wood	16	lineal ft. per unit of product
Filler	3.8	cu. ft. per unit of product
Springs	14	units per unit of product
In manufacture of Kate:
Fabric	2.5	sq. yds. per unit of product
Wood	12	lineal ft. per unit of product
Filler	3.2	cu. ft. per unit of product
Springs	10	units per unit of product

e. Anticipated purchase price for direct materials:

Fabric		$9.00	per sq. yd.		Filler		$1.50	per cu. ft.
Wood		5.00	per lineal ft.		Springs		2.00	per unit

f. Direct labor requirements:

William:
Framing Department		2.5 hrs. at $15 per hr.
Cutting Department		1.0 hr. at $12 per hr.
Upholstery Department		3.0 hrs. at $16 per hr.
Kate:
Framing Department		1.5 hrs. at $15 per hr.
Cutting Department		0.5 hr. at $12 per hr.
Upholstery Department		2.0 hrs. at $16 per hr.

Required:

1. Prepare a sales budget for March.

Royal British Furniture CompanySales BudgetFor the Month Ending March 31

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
William:
Eastern Domestic	fill in the blank 290a74f2a04f00d_1	$fill in the blank 290a74f2a04f00d_2	$fill in the blank 290a74f2a04f00d_3
Western Domestic	fill in the blank 290a74f2a04f00d_4	fill in the blank 290a74f2a04f00d_5	fill in the blank 290a74f2a04f00d_6
International	fill in the blank 290a74f2a04f00d_7	fill in the blank 290a74f2a04f00d_8	fill in the blank 290a74f2a04f00d_9
Total	fill in the blank 290a74f2a04f00d_10		$fill in the blank 290a74f2a04f00d_11
Kate:
Eastern Domestic	fill in the blank 290a74f2a04f00d_12	$fill in the blank 290a74f2a04f00d_13	$fill in the blank 290a74f2a04f00d_14
Western Domestic	fill in the blank 290a74f2a04f00d_15	fill in the blank 290a74f2a04f00d_16	fill in the blank 290a74f2a04f00d_17
International	fill in the blank 290a74f2a04f00d_18	fill in the blank 290a74f2a04f00d_19	fill in the blank 290a74f2a04f00d_20
Total	fill in the blank 290a74f2a04f00d_21		$fill in the blank 290a74f2a04f00d_22
Total revenue from sales			$fill in the blank 290a74f2a04f00d_23

2. Prepare a production budget for March.

Royal British Furniture CompanyProduction BudgetFor the Month Ending March 31

	William Units	Kate Units
Expected units to be sold	fill in the blank fb7d9efc6f8ffa9_1	fill in the blank fb7d9efc6f8ffa9_2
	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	fill in the blank fb7d9efc6f8ffa9_6	fill in the blank fb7d9efc6f8ffa9_7
	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be produced	fill in the blank fb7d9efc6f8ffa9_11	fill in the blank fb7d9efc6f8ffa9_12

3. Prepare a direct materials purchases budget for March.

Materials Purchases BudgetFor the Month Ending March 31

	Fabric (sq. yds.)	Wood (lineal ft.)	Direct Materials Filler (cu. ft.)	Springs (units)	Total
Required units for production:
William	fill in the blank 96a9d4f10053ffa_1	fill in the blank 96a9d4f10053ffa_2	fill in the blank 96a9d4f10053ffa_3	fill in the blank 96a9d4f10053ffa_4
Kate	fill in the blank 96a9d4f10053ffa_5	fill in the blank 96a9d4f10053ffa_6	fill in the blank 96a9d4f10053ffa_7	fill in the blank 96a9d4f10053ffa_8
	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	fill in the blank 96a9d4f10053ffa_14	fill in the blank 96a9d4f10053ffa_15	fill in the blank 96a9d4f10053ffa_16	fill in the blank 96a9d4f10053ffa_17
	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be purchased	fill in the blank 96a9d4f10053ffa_23	fill in the blank 96a9d4f10053ffa_24	fill in the blank 96a9d4f10053ffa_25	fill in the blank 96a9d4f10053ffa_26
Unit price	$fill in the blank 96a9d4f10053ffa_27	$fill in the blank 96a9d4f10053ffa_28	$fill in the blank 96a9d4f10053ffa_29	$fill in the blank 96a9d4f10053ffa_30
Total direct materials to be purchased	$fill in the blank 96a9d4f10053ffa_31	$fill in the blank 96a9d4f10053ffa_32	$fill in the blank 96a9d4f10053ffa_33	$fill in the blank 96a9d4f10053ffa_34	$fill in the blank 96a9d4f10053ffa_35

4. Prepare a direct labor cost budget for March.
Royal British Furniture Company
Direct Labor Cost Budget
For the Month Ending March 31
Framing Department Cutting Department Upholstery Department Total
Hours required for production:
William
Kate
Total
Hourly rate
Total direct labor cost

Accepted Answer

Budget: budget is an estimate prepared by the company to know its future goals and actions required…