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l LTE 11:10 project cost accounting fe07... Done 3 of 3 Problem 2. Preparing Master budgets UBS Company, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March) The managers of the different departments have provided the following information: The Sales Manager has projected the following sales: January 6,000 units February 5,000 units March 6,000 units Projected selling price is $40.00/unit Your Production Manager gave the following information: Ending Inventory is to be 20% of next month's production need **rounded to the nearest 10. April's Projected Sales 5,500 units, May 11250 units December 20X5 Ending Inventory was 1,000 units The Manufacturing Manager has estimated the following Each unit will require 4 grams of material Material in Ending Inventory is 20% of next month's needs December's Ending Material Inventory was 4,800 g Project cost of material: $2.50/gram The Personnel Manager has estimated that Direct Labor will be projected at: 0.75 hours of Direct Labor per unit Direct Labor Cost: $8.50/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: Variable Overhead Rate to be $8 per Direct Labor hours Fixed Overhead Rate to be $3,000 per month The Accounting Department Manager has provided the following information: Selling and Administrative Expenses are projected to be a monthly cost of Salaries $6,000 Rent $1,500 Advertising $1,100 Telephone $300 Other $500 For the operating budget, you are expected to prepare the following: Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budget Selling & Administrative Expenses Budget

l LTE 11:10 project cost accounting fe07... Done 3 of 3 Problem 2. Preparing Master budgets UBS Company, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March) The managers of the different departments have provided the following information: The Sales Manager has projected the following sales: January 6,000 units February 5,000 units March 6,000 units Projected selling price is $40.00/unit Your Production Manager gave the following information: Ending Inventory is to be 20% of next month's production need **rounded to the nearest 10. April's Projected Sales 5,500 units, May 11250 units December 20X5 Ending Inventory was 1,000 units The Manufacturing Manager has estimated the following Each unit will require 4 grams of material Material in Ending Inventory is 20% of next month's needs December's Ending Material Inventory was 4,800 g Project cost of material: $2.50/gram The Personnel Manager has estimated that Direct Labor will be projected at: 0.75 hours of Direct Labor per unit Direct Labor Cost: $8.50/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: Variable Overhead Rate to be $8 per Direct Labor hours Fixed Overhead Rate to be $3,000 per month The Accounting Department Manager has provided the following information: Selling and Administrative Expenses are projected to be a monthly cost of Salaries $6,000 Rent $1,500 Advertising $1,100 Telephone $300 Other $500 For the operating budget, you are expected to prepare the following: Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budget Selling & Administrative Expenses Budget

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 20E: Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc.,...
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l LTE 11:10 project cost accounting fe07... Done 3 of 3 Problem 2. Preparing Master budgets UBS Company, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March) The managers of the different departments have provided the following information: The Sales Manager has projected the following sales: January 6,000 units February 5,000 units March 6,000 units Projected selling price is $40.00/unit Your Production Manager gave the following information: Ending Inventory is to be 20% of next month's production need **rounded to the nearest 10. April's Projected Sales 5,500 units, May 11250 units December 20X5 Ending Inventory was 1,000 units The Manufacturing Manager has estimated the following Each unit will require 4 grams of material Material in Ending Inventory is 20% of next month's needs December's Ending Material Inventory was 4,800 g Project cost of material: $2.50/gram The Personnel Manager has estimated that Direct Labor will be projected at: 0.75 hours of Direct Labor per unit Direct Labor Cost: $8.50/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: Variable Overhead Rate to be $8 per Direct Labor hours Fixed Overhead Rate to be $3,000 per month The Accounting Department Manager has provided the following information: Selling and Administrative Expenses are projected to be a monthly cost of Salaries $6,000 Rent $1,500 Advertising $1,100 Telephone $300 Other $500 For the operating budget, you are expected to prepare the following: Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budget Selling & Administrative Expenses Budget
Transcribed Image Text:l LTE 11:10 project cost accounting fe07... Done 3 of 3 Problem 2. Preparing Master budgets UBS Company, a manufacturing business that sells baskets, wants a master budget prepared for the first three months of this year (January, February and March) The managers of the different departments have provided the following information: The Sales Manager has projected the following sales: January 6,000 units February 5,000 units March 6,000 units Projected selling price is $40.00/unit Your Production Manager gave the following information: Ending Inventory is to be 20% of next month's production need **rounded to the nearest 10. April's Projected Sales 5,500 units, May 11250 units December 20X5 Ending Inventory was 1,000 units The Manufacturing Manager has estimated the following Each unit will require 4 grams of material Material in Ending Inventory is 20% of next month's needs December's Ending Material Inventory was 4,800 g Project cost of material: $2.50/gram The Personnel Manager has estimated that Direct Labor will be projected at: 0.75 hours of Direct Labor per unit Direct Labor Cost: $8.50/hour The Facilities Manager has estimated that the Manufacturing Overhead will be projected at: Variable Overhead Rate to be $8 per Direct Labor hours Fixed Overhead Rate to be $3,000 per month The Accounting Department Manager has provided the following information: Selling and Administrative Expenses are projected to be a monthly cost of Salaries $6,000 Rent $1,500 Advertising $1,100 Telephone $300 Other $500 For the operating budget, you are expected to prepare the following: Sales Budget Production Budget Direct Materials Budget Direct Labor Budget Manufacturing Overhead Budget Selling & Administrative Expenses Budget
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