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9:22 Search < Operational Budgets... Operational Budgets N ame Space Company has developed the following standards relating to the production of their finished units: Direct Materials, 5 pounds per unit@ S8.00 per pound Direct Labor. 7 hours per unit@S16 per labor hour Variable Overhead. 4 machine hours per unit @ $9 per machine hour Fixed overhead costs are estimated at S508.200 each quarter The expected selling price is S400 per unit. Selling and administrative costs are expected to be $8 per unit variable and $620,000 fixed each quarter. following sales forecast is available for the year 2020: First Quarter 9,000 units; Second Quarter I I ,000 units; Iliird Quarter 13,000 units; and Fourth Quarter 12,000 units. The expected sales in the First Quarter of 2021 are 12,000 units. Management policy is to maintain a finished goods inventory equal to 40% of the next quarter's sales and a raw materials inventory equal to 30% of the next quarter's production requirements. The beginning inventories of the first quarter of the year 2020 are expected to meet these same requirements. A. C. D. E. pr are a uction bud et b uarters for the ear 2020. PRODUCTION BUDGET arter 1 arter 2 arter 3 uarter 4 Prepare a direct materials purchase budget for thc first TWO quarters of the year 2020 only. DIRECT MATERIALS PURCHASE BUDGET uarter I Compute the following amounts: arter 2 arter 3 uarter 4 l. What is the budgeted ANNUAL production for the year 2020? 2. What are the budgeted ANNUAL machine hours needed for production for the year 2020? 3. What are the budgeted ANNUAL fixed overhead costs for the year 2020? 4. Based on machine hours, what is the pre-determined fixed overhead rate for the year 2020? 5. What is the total expected cost of a finished unit? Compute the following amounts for the FIRST quarter of the year 2020 only: 2. 4. 6. 7. 8. 9. What is the budgeted direct labor cost? What is the budgeted variable overhead cost? What is the budgeted fixed overhead cost? What dollar amount of fixed overhead cost will be applied to production? What is the budgeted amount of sales dollars? W'hat is budgeted cost of goods sold? What is the budgeted selling & administrative cost'? What is budgeted net income? What is the expected balance at the end of the quarter of raw materials (in dollars)? I O. What is the expected balance at the end of the quarter of finished goods (in dollars)? What amount of fixed overhead cost will be applied to production for the year? Dashboard Calendar To Do Notifications Total Total Inbox