B D E F G H 1 2 3 OPTIMA, INC. 4 5 6 7 General information: Selling price of bamboo rocking horses Linear feet of bamboo required per rocking horse Cost of bamboo per foot Hours required to build Average hourly direct labor rate 8 $33.50 3 $2.00 0.50 $15.00 9 10 11 12 13 14 15 16 Additional information: Ending finished goods inventory (percentage of the next quarter's sales) 40% Ending raw materials inventory (percentage of the next quarter's production) 30% Quarters/Year Variable manufacturing overhead rate per direct labor hour $8.00 Estimated quarterly fixed manufacturing overhead $275,000.00 4 Estimated monthly selling and administrative expenses: Variable $6.00 Fixed $200,000.00 17 18 19 20 21 22 23 24 25 26 Expected number of frames sold in following quarters: 4th Quarter 2019 55,000 1st Quarter 2020 65,000 2nd Quarter 2020 70,000 3rd Quarter 2020 75,000 4th Quarter 2020 90,000 1st Quarter 2021 90,000 2nd Quarter 2021 75,000 27 28 29 30 31 Optima Company Overhead Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted hours Variable Rate Budgeted VOH Budgeted FOH Total OH Optima Company Selling and Administrative Expenses Budget for the year ending December 31, 2020 Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4 Total Budgeted Sales (Units) Variable Rate Variable expenses Fixed expenses Total expenses 69 70 Optima Company Budgeted Cost Per Unit for the year ending December 31, 2020 71 72 Unit Cost 73 74 75 76 Budgeted Manufacturing Costs: Direct Materials Direct Labor Overhead: Variable Fixed Total Unit Costs 77 78 79 ? 80