B G H E In this project, you will need to prepare the operating budgets for Buff Company which manufactures and sells a singal product. The budgets are prepared by quarter for the year ending on December 31, 2021. Each tab of the workbook contains a different operating budgets: 1. Sales Budget 5. Manufacture Overhead Budget 2. Production Budget 6. Selling and Administration Budget 3. Direct Material Budget 7. Budgeted Income Statement 4. Direct Labor Budget Please fill in all colored cells. And be sure to complete all seven operating budgets. The budgets must be completed in sequence. Provided below are some check figuires, you can use these to check your work Sales Budget: Total Sales for the year = 5637,000.00 Production Budget: Total Required Production Units for the year = 9,460 DM Budget Total Cost of Direct Materials Purchases for the year = $116,328.00 DL Budget: Total Cost of Direct Labor for the year = $189,200.00 MOH Budget: Total Variable Overhead Costs for the year = $29,326.00 MOH Budget Total Overhead Costs for the year = $82,302.00 S&A Expenses Budget: Tote&Variable Costs for the year = $27,300.00 Budgeted Income Statement: Net Income for the year = $53,269 70 . . Step 1: Sales Budget Points Possible: 0.1 pts*15 - 1.5 pts Instruction. Provided below is the expected selling price and expected unit sales for the four quarters of 2021. Use this information to complete the sales budget. Expected Selling Price: $70 Expected Sales Volume (in units): Quarter 1 Quarter 2 1,100 2,500 Quarter 3 3,600 Quarter 4 1,900 Buff Company Sales Budget For the year ending December 31, 2021 Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Expected Unit Sales Unit Selling Price Toal Sales M Step 2: Production Budget Points Possible: 0.1 pts 17 -1.7 pts Instruction: Buff Company expects to meet future sales requirements by maintaing an ending inventory equal to 30% of the next quarter's budgted sales volume. Use these information to complete the production budget 30% Ending Inventory as _ of next quarter's sales volume Ending Finished Goods Inventory on December 31, 2020 Expected Sales Volume for Quarter 1 of year 2022 units 330 2.300 units Buff Company Production Budget For the year ending December 31, 2021 Quarter Quarter 1 Quarter 2 Quarter 3 1,100 2,500 3.600 Year Quarter 4 1.900 Expected Unit Sales Add: Desired ending Finished Goods Units Total Required Units Less: Beginning Finished Goods Units Required Production Units tinn Instruction: Buff Company maintains an ending inventory equal to 30% of the next quarter's production requirements. Use these information to complete the Direct Material Budget. Assuming only one type of material are used for production per lb 1,368 2,070 lbs Ibs Ending Inventory as _ of next quarter's production requirements: 30% Number of pounds of direct material required for each product: 3 Ibs Expected cost per pound $4.00 Beginning inventory of direct materials for Quarter 1 of 2021, in pounds: Desired ending inventory of direct materials for Quarter 4 of 2021, in pounds: Complete Production Budget' first before you start this budget! Buff Company Direct Material Budget For the year ending December 31, 2021 Quarter Quarter 1 Quarter 2 Quarter 3 Units to be Producted Direct Material per Unit Total Pounds needed for production Add: Desired ending Direct Material, pa Total Material Required Less: Beginning Direct Material pound Direct Material Purachases Cost per Pound Total Cost of Direct Material Purchases Quarter 4 Year $0.00 Step 4: Direct Labor Budget Points Possible: 0.1 pts 12 = 1.2 pts hours per hour Instruction: Use the information below to prepare the Direct Labor Budget. Number of direct labor hours required to produce each unit of finished goods Expected cost per direct labor hour $20.00 Complete 'Production Budget" first before you start this budget! Buff Company Sales Budget For the year ending December 31, 2021 Quarter Quarter 1 Quarter 2 3 Quarter 4 Unit to be produced Direct Labor Hours per Unit Total Required Direct Labor Hours Direct Labor Cost per Hour $20.00 $20.00 $20.00 $20.00 Total Direct Labor Cost Year $0.00 C E M Instruction Buff Company expects variable overhead costs to flucturate with production volume according to the following rates: Indirect Material: $1.20 per direct labor hour Indirect Labor: $1.40 per direct labor hour Utilities: $0.40 per direct labor hour Maintenance: $0.10 per direct labor hour Year + Buff Company also incurs fixed overhead cost. The amounts of fixed overhead are already provided in the budget below. Use the information to complete the Manufacturing Overhead Budget Complete Direct Lebor Budget' first before you start this budget Buff Company Direct Material Budget For the year ending December 31, 2021 Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4 Variable Costs: Indirect Materials ( $1.2/hour) Indirect Labor ($1.4/hour) Utilities ($0.4/hour) Maintenance ($0.1/hour) Total Variable Costs $0 Fixed Costa Supervisory Salaries $4,730 $4,730 $4,730 $4,730 $18,920 Depreciation $2,838 $2,838 $2,838 $2,838 $11,352 Property Taxes and Insurance $1,892 $1,892 $1,892 $1,892 $7,368 Maintenance $3,784 $3,784 $3,784 $3,784 $15,136 Total Fixed Costa $13,244 $13,244 $13,244 $13,244 $52,976 Total Manufacturing Overhead SO Direct Labor Hours Predetermined MOH allocation rate * This predetermined MOH rate is a traditional MOH rate - using the yearly amounts, compute the budgeted overhead rate per direct labor hour. F G H Intruction Buff Company expects variable selling and administrative expenses to fluctuate with unit sales volume according to the following K M Sales Commissions: $2.00 per unit of goods sold Freight-out $1.00 per unit of goods sold Buff Company also incru fixed selling and administrative expenses. The amounts of fixed selling and administrative expenses are already provided in the budget below. Use the information to complete the Selling and Administrative Expenses Budget Buff Company Direct Material Budget For the year ending December 31, 2021 Quarter Quarter 1 Quarter 2 Quarter 3 1,100 2,500 3,600 Year Quarter 4 1,900 $0 Budgeted Sales in Units Variable Expenses Sales Commissions ($2/unit) Freight-out (S1/unit) Total Variable Expenses Fixed Expenses Advertising Sales Salaries Office Salaries Depreciation Property Taxes and Invurance Total Fixed Expenses Total Selling and Administrative Expense $3,200 $17,000 $18,000 $2,300 $2,300 $42,800 $3,200 $17,000 $18,000 $2,300 $2,300 $42,800 $3,200 $17,000 $18,000 $2,300 $2,300 $42,800 $3,200 $17,000 $18,000 $2,300 $2,300 $42,800 $12,800 $68,000 $72,000 $9,200 $9.200 *Freight-out - Costs to get product delivered to custumor ready for use. For example, the transportation costs associated with the delivery are paid by the company (as seller). Similar to Freight-out, Freight in the the costs associated with getting purchases poods ready to use by the company. For example, the transporation costs are associated with purchased raw materials, supplies, or equipments; these costs are paid by the company (as customer) as addition to the costs of raw materials, supplies, or equipments, Production budaet 3.DM budget 4.DL budget 5.MOH budget 6.S&A expense budget 7.Bu Steg 7Budgeted Income Statement Points Possible: 0.1 pts 15- 15 pts Instructio Complete the following schedule to determine the cost of goods sold Complete Manuturing Overhead Budget first before you start this budget! Product Cost per Unit Cost Element Source of Data Quantity Unit Cost Total Direct Material OM Budget 3 lbs $4.00 per lb Direct Labor DL Budget hours $20.00 Manufacturing Overhead MOH Budget 1 unit per unit Total Unit Cost 1 per hour Cost of Good Sold Total Unit Cost -Complete the Product Cost per Unit first- Units Sold Budgeted Cost of Good Sold Additional Information Interest Expenses for 2021 Income Tax Rate for 2021 $700.00 21% Buff Company Budgeted Income Statement For the year ending December 31, 2021 Sales Cost of Good Sold Gross Profit Selling and Administrative Ex Income from Continues Oper Interest Expenses Income before Taxes Income Tax Expenses Net Income Income tax rate is applied to the income before Taxes" By multiply the income before takes with the tax rate, you could get the income tax expneses. 2.Production budget 3.DM budget 4.DL budaet 5 MOH huidiot ICQU