All questions on this assignment pertain to SB Manufacturing (SBM). SBM is a manufacturing
company that makes two products, P1 and P2 The objective of this assignment is to work
through various component of SBM's Sales and Production budgets for 2021.
PART 1
DATA
2021 projected sales:
Product	Sales (units)	Price (each)
P1	43,500	$65.00
P2	78,500	$80.00
2021 projected Finished Goods inventory balance (units)
Product	1/1/21	12/31/21
P1	10,000	9,000
P2	18,000	20,000
Calculate the following forecasts based upon the above data
Q1 Forecast Revenues from Product 1 (P1)				<==Answers to all questions should be placed
					in the corresponding yellow shaded cell.
Q2 Forecast Revenues from Product 2 (P2)
Q3 Forecast Total Revenues
Q4 How many units of P1 should SBM manufacture in 2021?
Q5 How many units of P2 should SBM manufacture in 2021?
PART 2
Assume all sales occur evenly during the year, i.e., each month represents 1/12th of
annual sales (as estimated for Q3). All sales are made on account and the following additional
information pertaining to Accounts Receivable is used for budgeting purposes:
Sales by month in 2020
November Sales			$ 750,000
December Sales			$ 700,000
Accounts Receivable Collection Schedule as % of Sales
In month of Sale			45%
In month following the Sale			30%
In the 2nd month following the Sale		20%
Expected Bad Debts			5%
Complete the following Cash Collections Schedule on Sales for Q1 2021 in order to answer
Questions 6, 7, and 8 pertaining to the budgeted cash collections in Jan, Feb, & Mar.
		Accounts	Amount Collected in
Month of Sale		Receivable	January	February	March
November		$ 750,000
December		$ 700,000
January
February		$0
March		$0
Total Cash Collected						<== Note these Questions
			Q6	Q7	Q8	Place answers in cells D53, E53, and F53 respectively regarding cash
						from A/R collected in January, February, and March
Part 3
DATA
2021 Budgeted Input Production Requirements			Raw Material Inventory
	Units per P1	Units per P2	Unit cost of input	1/1/21	12/31/21
Direct labor hrs T1	0.2	0	$40.00
Direct labor hrs T2	0	0.3	$30.00
Machine hrs	0.01	0.025
Lbs of Z1	3	4	$2.00	40,000	45,000
Units of Z2	4	5	$3.00	60,000	65,000
Feet of Z3	5	6	$4.00	70,000	70,000
The production of P1 and P2 requires direct labor (2 types), machine hours, and direct materials
(3 types: Z1, Z2, and Z3). Input - output relations are given in the table above per unit of output. For example,
one unit of P1 is budgeted to require 0.2 hours of Type 1 labor. Input prices are per unit of input such
as a per pound, hour, foot, or unit. E.g., 1 hour of Type 1 labor is budgeted to cost $40.00 per hour.
Ignore your answers to Questions 4 and 5 in Part 1. Assume SBM has budgeted production for 2021 as:
Product P1 budgeted production for 2021	45,400	units. (if you do not see a number, be sure you
Product P2 budgeted production for 2021	78,100	units. entered your UIN)
Answer the following questions regarding the annual production / purchases budgets using the information in Part 3.
Q9 The total number of T1 labor hours required in 2021 is?
Q10 The total number of T2 labor hours required in 2021 is?
Q11 The total number of machine hours required in 2021 is?
Q12 The total number of lbs. of input Z1 required for production in 2021 is?
Q13 The total number of units of input Z2 required for production in 2021 is?
Q14 The total number of feet of input Z3 required for production in 2021 is?
Q15 What is the budget for T1 direct labor (dollars)?
Q16 What is the budget for T2 direct labor (dollars)?
Q17 What is the total direct labor budget (dollars)?
Q18 What is the purchases budget for material Z1 (dollars)?
Q19 What is the purchases budget for material Z2 (dollars)?
Q20 What is the purchases budget for material Z3 (dollars)?
PART 4
Use the following information to answer questions regarding the budgeted
Manufacturing Overhead for 2021. SBM has estimated the cost of OH to be ==>	$ 1,576,000
These costs are divided into two cost pools and are assigned to WIP based
on the use of predetermined rates. (These are Plant-wide rates.)
				Percent of
	OH Cost Pool		Cost Driver	Total Overhead
1) Machinery and Facilities Activity Total Machine Hours	40%
2) Personnel and Scheduling Activity Total Direct Labor Hours	60%
Q21 The amount of budgeted MFG overhead assigned to machinery & facilities is?
Q22 The amount of budgeted MFG overhead assigned to personnel & scheduling is?
Q23 The predetermined OH rate for machinery & facilities is?
Q24 The predetermined OH rate for personnel & scheduling is?
Q25 The amount of machinery & facilites OH assigned to Product P1 is?
Q26 The amount of personnel & scheduling OH assigned to Product P1 is?