1. Prepare a budgeted cost of services provided and a budgeted income statement for the year ending December 31,2020 based on the information emalled to you. Use this format: Maintenance Division of Cedar Properties Budgeted Statement of Cost of Services Provided For the year ended December 31, 2020 Direct materials Beg. materials inventory Add: Material Purchases Materials available Less: Ending materials inv. Materials used in jobs Direct maintenance labor Service overhead Total services production costs added Cost of services produced Maintenance Division of Cedar Properties Budgeted Income Statement For the year ended December 31,2020 Sales Cost of services provided Gross Margin Selling \& Admin Overhead Operating income 2. Prepare an actual cost of services provided and an actual income statement for the year ending December 31,2020 based on the information emailed to you. Present them same format at in1. 3. Would job order costing or process costing be most appropriate for this business? Why is one method better than the other for this type of business? Explain which method would work the best for this business. Use complete sentences and give at least two (2) reasons for your answer. 4. Prepare a cash budget for the month of JULY only from the Beginning Cash Balance to the Ending Cash Balance. Do not include minimum cash balance in the cash budget calculations. After you complete the budget, based on the luly cash budget, what would you recommend the minimum cash balance be set at? Show AlL CALCULATIONS to get credit. See the budgeted information by month that is at the end of your information data sheet and the following: April 1 balance in Cash $30,000. Collections: 60% collected in the current month and 40% is collected in the next month. Labor payments: 70% of hourly wages paid in the current month and 30% is paid in the next month. Materials payments: 100% is paid in the next month. Overhead payments: 100% is paid in the current month. Do not include minimum cash balance in the initial cash budget. At the end show what you think the minimum cash balance should be based on this month of information. 5. Calculate the direct labor rate variance, the direct labor efficiency variance, the total direct labor cost variance and the total overhead cost variance. Make sure you label them as unfavorable or favorable and show all your calculations. 6. Compute the budgeted and actual ROI, budgeted and actual turnover ratios, budgeted and actual profit margin ratios for the company. Show all your calculations. 7. Looking at all the information you have calculated and analyzed above, what do you see as the problems in the maintenance business? Refer to the specific calculations or analysis that make you think these areas are problems. 8. What recommendations would you make to management to improve their financial situation (considering what you stated as the problems in the last question)? Describe at least two (2) items or areas that you would recommend management make improvements and steps they could take to make these improvements
