#5 through #8 please
The FireGlobe Company manufactures fire pits in the shape of the earth (The Globe). The company makes a very popular 34- inch diameter globe made of two quarter inch mild steel shells that are welded together and fixed to a base ring. The Globe is then cut to show in relief the major continents of earth. Production involves some basic assembly welding and hours of precision welding of the stenciled earth pattern. Specialized cutting equipment and heavy machinery to lift the globes is required. Each finished unit weighs approximately 200 pounds. Other than some basic packaging materials (wooden pallet and cardboard) and welding supplies, which are treated as indirect materials, no other materials are required. Fire Globe is preparing budgets for the third quarter ending September 30, 2020. For each requirement below prepare budgets by month for July, August and September, and a total budget for the quarter. 1. The previous year's sales (2019) for the corresponding period were: July August September October November 300 globes 400 globes 425 globes 600 globes 500 globes 5. FireGlobe budgets indirect materials (e.g., welding supplies and packaging materials) at $40 per globe. Utilities cost per globe is $50. FireGlobe treats indirect labor as a mixed cost. The variable component is $100 per globe. The following fixed costs per month are budgeted for indirect labor, $5,000, depreciation, $15,000, and other, $6,000. Prepare a Manufacturing Overhead budget. 6. Variable selling and administrative expenses consist of outward freight ($250 per globe) and sales commission (10 percent of the selling price per globe). Fixed selling and administrative expenses include webpage fees ($1,500 per month), administration ($40,000 per month) and marketing ($35,000 per month). Prepare an Operating Expenses budget. 7. Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this by budgeted production for the year. The total production volume for the year is budgeted at 1,500 globes. 8. Prepare a Budgeted Income Statement for the quarter for FireGlobe. Assume interest expense of $0, and income tax expense of 21% of income before taxes. FireGlobe's goal for the quarter is to make its net income greater than 5% of its sales revenue. To determine whether the company achieves the goal, use @IF function. In the IF function, you need to label Achieved if it achieves the goal (if the condition is met) or Not Achieved if it does not achieve (if the condition is not met). Use the CELL right next to 'Net Income' cell to make the IF function that returns one of the labels based on whether the condition (net income > sales revenue*5%) is met or not. The FireGlobe Company manufactures fire pits in the shape of the earth (The Globe). The company makes a very popular 34- inch diameter globe made of two quarter inch mild steel shells that are welded together and fixed to a base ring. The Globe is then cut to show in relief the major continents of earth. Production involves some basic assembly welding and hours of precision welding of the stenciled earth pattern. Specialized cutting equipment and heavy machinery to lift the globes is required. Each finished unit weighs approximately 200 pounds. Other than some basic packaging materials (wooden pallet and cardboard) and welding supplies, which are treated as indirect materials, no other materials are required. Fire Globe is preparing budgets for the third quarter ending September 30, 2020. For each requirement below prepare budgets by month for July, August and September, and a total budget for the quarter. 1. The previous year's sales (2019) for the corresponding period were: July August September October November 300 globes 400 globes 425 globes 600 globes 500 globes 5. FireGlobe budgets indirect materials (e.g., welding supplies and packaging materials) at $40 per globe. Utilities cost per globe is $50. FireGlobe treats indirect labor as a mixed cost. The variable component is $100 per globe. The following fixed costs per month are budgeted for indirect labor, $5,000, depreciation, $15,000, and other, $6,000. Prepare a Manufacturing Overhead budget. 6. Variable selling and administrative expenses consist of outward freight ($250 per globe) and sales commission (10 percent of the selling price per globe). Fixed selling and administrative expenses include webpage fees ($1,500 per month), administration ($40,000 per month) and marketing ($35,000 per month). Prepare an Operating Expenses budget. 7. Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this by budgeted production for the year. The total production volume for the year is budgeted at 1,500 globes. 8. Prepare a Budgeted Income Statement for the quarter for FireGlobe. Assume interest expense of $0, and income tax expense of 21% of income before taxes. FireGlobe's goal for the quarter is to make its net income greater than 5% of its sales revenue. To determine whether the company achieves the goal, use @IF function. In the IF function, you need to label Achieved if it achieves the goal (if the condition is met) or Not Achieved if it does not achieve (if the condition is not met). Use the CELL right next to 'Net Income' cell to make the IF function that returns one of the labels based on whether the condition (net income > sales revenue*5%) is met or not
