4 Eactory Overhead Budaet Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units (Round to two places, \$\#\#.\#\#) \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} {9.01} 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp {9.02} Factory overhead per unit Total cost of one unit \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} {9.03} (Round to two places, \$\#\#.\#\#) 6 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, \$\#\#..\#\#) {9.04} Fixed Administrative Variable Administrative (Round to two places, \$\#\#..\#\#) Total Selling and Administrative (Round to two places, \$\#\#.\#\#) \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} {9.05} {9.06} 7SoldGoods Round dollars to two Budget - places, \$\#\#.\#\# Beginning Inventory, Finished Goods {9.07} Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits {9.08} Lamp Kits Used In Production Total Materials: {9.09} Labor {9.10} Overhead {9.11} Cost of Goods Available {9.12} Less: Ending Inventory, Finished Goods Cost of Goods Sold {9.13} {9.14} 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, \$\#\#.\#\#) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, \$\#\#.\#\#) Fixed Factory Overhead Total Factory Overhead (Round to two places, \$\#\#.\#\#) I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable \$ 34,710.00 Inventory Raw Material Finished Goods 3000@$30.00 Total Current Assets $200,210.0090,000.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13,200.00$213,410.00 Current Liabilities Accounts Payable Total Liabilities \begin{tabular}{ll} $ & 54,000.00 \\ \hline$ & 54,000.00 \end{tabular} Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity \begin{tabular}{rr} 159,410.00 \\ \hline$213.410.00 \\ \hline \end{tabular} The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Expected increases for 202 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 6.50%. 2. Labor Costs are expected to increase by 5.00%. 3. Variable Overhead is expected to increase by 3.50%. 4. Fixed Overhead is expected to increase to $255,000. 5. Fixed Administrative expenses are expected to increase to $50,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 5.00%. 7. Fixed selling expenses are expected to be $25,000 in 202. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 4.50%. Variable Manufacturing Unit Cost \begin{tabular}{|r|c|r|} \multicolumn{1}{c|}{201 Cost } & ProjectedPercentIncrease & 20x2CostRoundedto2DecimalPlaces \\ \hline 16 & 6.50% & $17.04 \\ \hline 2 & 5% & $2.10 \\ \hline 2 & 3.50% & $2.07 \\ \hline & & $21.21 \\ \hline & & \end{tabular} {4.01} {4.02} {4.03} Projected Variable Manufacturing Cost Per Unit {4.04} Iotal Variable cost Per Unit {4.05} {4.06} {4.04} Projected Total Variable Cost Per Unit {4.07} Schedule of Fixed Costs Fixed Overhead (normal capacity of lamps@__) Fixed Selling Fixed Administrative Projected Total Fixed Costs {4.08} {4.09} {4.10} {4.11} Big Al is about to begin work on the budget for 202 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. For 202 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution marcin ratin for each lamn sold? Contribution Margin per unit (Round to two places, \$han. Int) Contribution Margin Ratio (Round to four places, \% is two of those places \#\#\#.\#\#\%) For 202 the selling price per lamp will be $45.00. The desired net income in 202 is $207,500. What For 202 the selling price per lamp will be $45.00. If the fixed cost increase by $75,000.00 how many lamps mint ha mali ta hromalominm? Breakeven sales in units (Since we cannotsell partofa unitround up to the nextunitifneeded) For 202 the selling price per lamp will be $45.00. If the variable cost increase by $7.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 29,865 units {6.01} For 202 the selling price per lamp will be $45.00. If the variable cost decreased by $7.50 a unit how many lamps must be sold to breakeven? 12,000 units {6.02} If for 202 the selling price per lamp is increased to $52.50 a unit how many lamps must be sold in hrankeminm? {6.03} If for 202 the selling price per lamp is decreased to $37.50 a unit how many lamps must be sold in hrankramion? Division N has decided to develop its budget based upon projected sales of 31,000 lamps at $52.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 550 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production {7.01} 4 Eactory Overhead Budaet Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units (Round to two places, \$\#\#.\#\#) \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} {9.01} 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp {9.02} Factory overhead per unit Total cost of one unit \begin{tabular}{|l|l|l|} \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} {9.03} (Round to two places, \$\#\#.\#\#) 6 Selling and Admin. Budget Fixed Selling Variable Selling (Round to two places, \$\#\#..\#\#) {9.04} Fixed Administrative Variable Administrative (Round to two places, \$\#\#..\#\#) Total Selling and Administrative (Round to two places, \$\#\#.\#\#) \begin{tabular}{|l|l|l|l|l|} \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline \end{tabular} {9.05} {9.06} 7SoldGoods Round dollars to two Budget - places, \$\#\#.\#\# Beginning Inventory, Finished Goods {9.07} Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits {9.08} Lamp Kits Used In Production Total Materials: {9.09} Labor {9.10} Overhead {9.11} Cost of Goods Available {9.12} Less: Ending Inventory, Finished Goods Cost of Goods Sold {9.13} {9.14} 3 Direct Labor Budget Labor Cost Per Lamp Production Total Labor Cost (Round to two places, \$\#\#.\#\#) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, \$\#\#.\#\#) Fixed Factory Overhead Total Factory Overhead (Round to two places, \$\#\#.\#\#) I See The Light Projected Balance Sheet As of December 31, 20x1 Current Assets Cash Accounts Receivable \$ 34,710.00 Inventory Raw Material Finished Goods 3000@$30.00 Total Current Assets $200,210.0090,000.00 Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13,200.00$213,410.00 Current Liabilities Accounts Payable Total Liabilities \begin{tabular}{ll} $ & 54,000.00 \\ \hline$ & 54,000.00 \end{tabular} Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity \begin{tabular}{rr} 159,410.00 \\ \hline$213.410.00 \\ \hline \end{tabular} The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Expected increases for 202 When calculating projected increases round to TWO ($0.00) decimal places. 1. Material Costs are expected to increase by 6.50%. 2. Labor Costs are expected to increase by 5.00%. 3. Variable Overhead is expected to increase by 3.50%. 4. Fixed Overhead is expected to increase to $255,000. 5. Fixed Administrative expenses are expected to increase to $50,000. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 5.00%. 7. Fixed selling expenses are expected to be $25,000 in 202. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 4.50%. Variable Manufacturing Unit Cost \begin{tabular}{|r|c|r|} \multicolumn{1}{c|}{201 Cost } & ProjectedPercentIncrease & 20x2CostRoundedto2DecimalPlaces \\ \hline 16 & 6.50% & $17.04 \\ \hline 2 & 5% & $2.10 \\ \hline 2 & 3.50% & $2.07 \\ \hline & & $21.21 \\ \hline & & \end{tabular} {4.01} {4.02} {4.03} Projected Variable Manufacturing Cost Per Unit {4.04} Iotal Variable cost Per Unit {4.05} {4.06} {4.04} Projected Total Variable Cost Per Unit {4.07} Schedule of Fixed Costs Fixed Overhead (normal capacity of lamps@__) Fixed Selling Fixed Administrative Projected Total Fixed Costs {4.08} {4.09} {4.10} {4.11} Big Al is about to begin work on the budget for 202 and they have requested that you prepare an analysis based on the following assumptions. Note: Remember, that we cannot sell part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthuremore, to find the required sales in dollars it may be easier to find the number of units and then multiply by the selling price per unit. For 202 the selling price per lamp will be $45.00. What is the projected contribution margin and contribution marcin ratin for each lamn sold? Contribution Margin per unit (Round to two places, \$han. Int) Contribution Margin Ratio (Round to four places, \% is two of those places \#\#\#.\#\#\%) For 202 the selling price per lamp will be $45.00. The desired net income in 202 is $207,500. What For 202 the selling price per lamp will be $45.00. If the fixed cost increase by $75,000.00 how many lamps mint ha mali ta hromalominm? Breakeven sales in units (Since we cannotsell partofa unitround up to the nextunitifneeded) For 202 the selling price per lamp will be $45.00. If the variable cost increase by $7.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) 29,865 units {6.01} For 202 the selling price per lamp will be $45.00. If the variable cost decreased by $7.50 a unit how many lamps must be sold to breakeven? 12,000 units {6.02} If for 202 the selling price per lamp is increased to $52.50 a unit how many lamps must be sold in hrankeminm? {6.03} If for 202 the selling price per lamp is decreased to $37.50 a unit how many lamps must be sold in hrankramion? Division N has decided to develop its budget based upon projected sales of 31,000 lamps at $52.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 550 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production {7.01}