ACC 207 MDE Manufacturing Budget: Bird Feeder

I. Sales and Manufacturing Expenses: Budget and Actual (2014)

You will use this table to complete Milestones One and Two.

	Budget ($)	Actual ($)
Sales	1,050,000	991,700
Expenses
Materials Cedar	225,000	248,160
Materials Plastic	37,500	37,741
Factory Worker Labor	300,000	332,760
Materials Indirect	3,000	2,585
Factory Depreciation	78,000	78,000
Factory Utilities	12,000	12,000
Factory Maintenance and Repairs	5,000	4,500
Shipping ($2.25/each)	112,500	105,750
Sales Commissions ($2.00/unit sold)	100,000	94,000
Office Rent	12,000	12,000
Advertising	20,000	20,000
Liability insurance	5,000	5,000
Office Depreciation	1,000	1,000
Office Salaries	48,000	48,000
Total Expenses	959,000	1,001,496

II. Contribution Margin: Static Budget and Actual Results (2014)

You will use this table to complete Milestone Two.

	Actual Results	Static Budget Amount
Units Sold	47,000	50,000
Revenues ($)	991,700	1,050,000
Manufacturing Costs ($)
Variable	621,246	565,500
Fixed	94,500	95,000
Gross Margin	275,954	389,500

III. Standard Variable Manufacturing Costs (2014)

You will use this table to complete Milestone Two.

	Static Budget Costs	Standard Input
Direct Materials: Cedar	225,000	3.0 ft/unit
Direct Materials: Plastic	37,500	1.0 ft/unit
Direct Manufacturing Labor	300,000	0.5 hrs/unit
Variable Manufacturing Overhead	3,000	0.3 ft/unit

IV. Actual Variable Manufacturing Costs (2014)

You will use this table to complete Milestone Two.

Actual Costs

Actual Input

Direct Materials: Cedar

248,160

3.2 ft/unit

Direct Materials: Plastic

37,741

1.1 ft/unit

Direct Manufacturing: Labor ($)

332,760

.60 hr/unit

Variable Manufacturing Overhead

2,585

0.25 ft/unit

Milestone One, Part II

Use Table I on the MDE Manufacturing Budget to complete your calculations.

Totals

Totals

Budget

Actual

Sales Price per Unit

Variable Costs

Materials - Cedar

Materials - Plastic

Factory Worker Labor

Materials - Indirect

3,000

2,585

Shipping ($2.25/ea)

Sales Commissions ($2/unit sold)

Variable Cost per Unit

Contribution Margin

Contribution Margin Percentage

Fixed Costs

Factory Depreciation

Factory Utilities

Factory Maintenance and Repairs

Office Rent

Advertising

Liability Insurance

Office Depreciation

Office Salaries

Total Fixed Costs

Using Budgeted Amounts

Breakeven Point -

Breakeven Point -

Using Actual Amounts

Units at Current Sales Price

+ 10,000 profit

Using actual amounts

New Contribution Margin

+ 10,000 profit

Current Variable Costs

New Sales Price