ACCT-202 Case Assignment Fall 18(3)-Saved to my ferences Mailings Review View No Spacing Headng 1 Heading 2 Heading 4 Heading 5 he course of the semester answer the following questions. (2-3 Pages Required) Sales Budget: the actuals sales in units was 480,000 which was below the budgeted 500,000 units. Provide 3 possible explanations for the variance in unit sales. 1. 2. Production Budget: assume that upon completion of the year-end inventory physical count you discover that 2,000 of Box P were damaged by a bug infestation and that 500 of Box C were | missing, most likely stolen. Describe how the damaged and missing units can affect the company's operations, you mist list 3 potential issues. Also, describe how the production budget would be affected Raw Materials Budget: supplied from sources within the Amazon. It is well established that the Amazon is a major producer of tree products to the United Stated and many countries in Europe, in fact the Amazon is the source of nearly 40% of the world supply. You hear on the news that there has been significant protest of the deforestation of trees in the Amazon as a result of concerns over global warming. Consequently, the United States has banned U.S. based companies from purchasing any byproducts of trees which are sourced from the Amazon. Describe how the ban of materials from the Amazon can affect the company's operations, you must list 3 potential issues. What would you recommend to address the issues you have identified? 3. assume the company uses raw materials for its boxes from trees 4. Direct Labor Budget: assume that the state where your company has it warehouse located has just raised it minimum hourly wage rate from $12.00 per hour to $15.00 per hour as the cost of living has increased substantially over the years, Can the change in wages affect the sales price? Identify 2 factors that could make it impossible to increase the sales price. If increasing the sales price is not an option then what other options to address the increase in costs would you ferences Mailings Review View Normal No Spacing Heading1 Heading 2Heading 4 discover that 2,000 of Box P were damaged by a bug infestation and that 500 of Box C were missing, most likely stolen. Describe how the damaged and missing units can affect the company's operations, you mist list 3 potential issues. Also, describe how the production budget would be affected. 3. Raw Materials Budget: assume the company uses raw materials for its boxes from trees the supplied from sources within the Amazon. It is well established that the Amazon is a major producer of tree products to the United Stated and many countries in is the source of nearly 40% of the world supply. You hear on the news that there has been significant protest of the deforestation of trees in the Amazon as a result of concerns over global warming. Consequently, the United States has banned U.S. based companies from purchasing any byproducts of trees which are sourced from the Amazon. Describe how the ban of materials from the Amazon can affect the company's operations. you must list 3 would you recommend to address the issues you have identified? Europe, in fact the Amazon 4. Direct Labor Budget: assume that the state where your company has it warehouse located has just raised it minimum hourly wage rate from $12.00 per hour to $15.00 per hour as the cost of living has increased substantially over the years. Can the change in wages affect the sales price? Identify 2 price is not an option then what other options to address the increase in costs would you recommend if the company is trying to still meet its budgeted target profit? factors that could make it impossible to increase the sales price. If increasing the sales (in cases) Raw material: 500,000 15,000 pounds 5,000 pounds Corrugating medi Total Units Required 505,000 10,000 495,000 $15000 al Direct Labor H For the Year Ended December 31,2018 otal Budgeted direct labor hours Direct LatorHour) 1237 5 210,000 FreshPak Corp Budg me Statement Box C Box P 105,000 320,000 Budgeted Cost Of Goods Sold 215,000 320,000 FreshPak Corp. Year Year Sales Less:COGS Gross Profit Less: Selling and Admin EBIT Less: Taxes @ 40% Net Income 450,000 105,000 345,000 05,000 240,000 96,000 144,000 1,100,000 320,000 780,000 210,000 70,000 228,000 342,000 650,000 435,000 105,000 330,000 132,000 198,000 6 3 ACCT-202 Case Assignment Fall 18(3)-Saved to my ferences Mailings Review View No Spacing Headng 1 Heading 2 Heading 4 Heading 5 he course of the semester answer the following questions. (2-3 Pages Required) Sales Budget: the actuals sales in units was 480,000 which was below the budgeted 500,000 units. Provide 3 possible explanations for the variance in unit sales. 1. 2. Production Budget: assume that upon completion of the year-end inventory physical count you discover that 2,000 of Box P were damaged by a bug infestation and that 500 of Box C were | missing, most likely stolen. Describe how the damaged and missing units can affect the company's operations, you mist list 3 potential issues. Also, describe how the production budget would be affected Raw Materials Budget: supplied from sources within the Amazon. It is well established that the Amazon is a major producer of tree products to the United Stated and many countries in Europe, in fact the Amazon is the source of nearly 40% of the world supply. You hear on the news that there has been significant protest of the deforestation of trees in the Amazon as a result of concerns over global warming. Consequently, the United States has banned U.S. based companies from purchasing any byproducts of trees which are sourced from the Amazon. Describe how the ban of materials from the Amazon can affect the company's operations, you must list 3 potential issues. What would you recommend to address the issues you have identified? 3. assume the company uses raw materials for its boxes from trees 4. Direct Labor Budget: assume that the state where your company has it warehouse located has just raised it minimum hourly wage rate from $12.00 per hour to $15.00 per hour as the cost of living has increased substantially over the years, Can the change in wages affect the sales price? Identify 2 factors that could make it impossible to increase the sales price. If increasing the sales price is not an option then what other options to address the increase in costs would you ferences Mailings Review View Normal No Spacing Heading1 Heading 2Heading 4 discover that 2,000 of Box P were damaged by a bug infestation and that 500 of Box C were missing, most likely stolen. Describe how the damaged and missing units can affect the company's operations, you mist list 3 potential issues. Also, describe how the production budget would be affected. 3. Raw Materials Budget: assume the company uses raw materials for its boxes from trees the supplied from sources within the Amazon. It is well established that the Amazon is a major producer of tree products to the United Stated and many countries in is the source of nearly 40% of the world supply. You hear on the news that there has been significant protest of the deforestation of trees in the Amazon as a result of concerns over global warming. Consequently, the United States has banned U.S. based companies from purchasing any byproducts of trees which are sourced from the Amazon. Describe how the ban of materials from the Amazon can affect the company's operations. you must list 3 would you recommend to address the issues you have identified? Europe, in fact the Amazon 4. Direct Labor Budget: assume that the state where your company has it warehouse located has just raised it minimum hourly wage rate from $12.00 per hour to $15.00 per hour as the cost of living has increased substantially over the years. Can the change in wages affect the sales price? Identify 2 price is not an option then what other options to address the increase in costs would you recommend if the company is trying to still meet its budgeted target profit? factors that could make it impossible to increase the sales price. If increasing the sales (in cases) Raw material: 500,000 15,000 pounds 5,000 pounds Corrugating medi Total Units Required 505,000 10,000 495,000 $15000 al Direct Labor H For the Year Ended December 31,2018 otal Budgeted direct labor hours Direct LatorHour) 1237 5 210,000 FreshPak Corp Budg me Statement Box C Box P 105,000 320,000 Budgeted Cost Of Goods Sold 215,000 320,000 FreshPak Corp. Year Year Sales Less:COGS Gross Profit Less: Selling and Admin EBIT Less: Taxes @ 40% Net Income 450,000 105,000 345,000 05,000 240,000 96,000 144,000 1,100,000 320,000 780,000 210,000 70,000 228,000 342,000 650,000 435,000 105,000 330,000 132,000 198,000 6 3
