Baseball Bat MFG had a sales budget for bats for the next months Units Jan 30,000 Feb Mar 40,000 50,000 They sell each Bat for $60 50,000 They want ending finished goods inventory to be 30% of the next month's sales units Beginning Finished goods inventory is 5,000 units It takes 2 pounds of material to make each bat. That is the only Direct Material Beginning Direct Material inventory is 50,000 pounds They want ending raw material inventory to be 20% of the next month's direct material need One pound of material cost them $3 It takes 30 minutes to make each bat and the labor cost is $16 per hour. 1 Prepare the Sales Budget Units Jan Feb Mar Revenue 2 Prepare the Unit Production Budget in Units Jan Feb Mar 3 Prepare the Raw Materials Budget for Jan-Feb in pounds and dollars Jan Feb Prepare the Labor Budget in the space below Jan Feb Mar 5 You are asked to approve or deny a request to purchase a new printer which costs 32.000 now but will increase efficiency and save $6.000 cash year for the next 6 years and can be sold after 6 years for $2,000. The discount rate is 10% 6 Approve Deny (show why using Net Present Value) In number 5, above, what would be the cash payback period Round to one decimal point 7 A sut making company makes and sells mens suits The standard cost for a yard of material is $3.60 Each suit requires a standard of 4 yards per suit. In one month they made 4800 suits Actual material purchased and used was 21,120 yards at a total cost of $70,752 (3.35 per yard) Prepare the Material price (rate) and usage variances 8 The suits take a standard of 1.6 labor hours to make The standard labor rate is $16 per hour. The 4800 suits they made cost $100,800 for direct labor Actual rate is $15 per hour Prepare the Labor rate and labor Qty (usage) variances 9 Below are the budget and actual income statements for 1 Qtr along with variance to budget. In the space create a flexible budget for the 800 unit level and calculate differences actual versus the flexible budget. Put the number and F or U for Favorable or Unfavorable Units Sales Costs/Expenses Budget 1,000 Actual 800 difference Direct Material S Direct Labor 3,000 $ 2,000 2,800 (200) F 1,500 (500) F Variable OH 1,000 750 (250) F Variable Selling 1,500 1,400 (100) F Variable Admin 1,000 800 (200) F Fixed OH 2,000 2,100 100 U Fixed Selling 2,500 2.500 - Fixed Admin 3,000 3,000 Total Costs/Expenses) 16,000 14,850 (1,150) F Flexible Budget difference U or F 800