Better Skills, Inc. provides workshops on various topics throughout the United States. Typically, they have five workshops simultaneously every day, Monday through Friday, in the 48 contiguous states. One support center of Better Skills is the Printing Department that prints the announcement flyers and all the workshop folders. Two flyers are mailed to a mailing list of 100,000 as shown in the chart below, one announcing the scheduled workshops for the next 6 months, and the other reminding of the workshops to be offered in the following three months.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

200,000 100,000 100,000 100,000 100,000 100,000 200,000 100,000 100,000 100,000 100,000 100,000

Attendance at the workshops has been consistent over the past five years, but there has been a 10% increase in attendance beginning in October, 2020, due to several new workshops replacing some that were no longer well attended (workshop topics typically have a five-year interest lifespan). The workshop folders do not change once developed, but storage space is limited to two weeks scheduled workshop folders (2400 folders before the new sessions). Folders are shipped weekly to the various locations the week prior to their sessions. Additional details about the Printing Department are provided below.

Each folder consists of a colored folder with 3-hole grommets and an inside pocket. The folders cost $55 per box of 500. The paper used for the materials is 20# white paper and colored ink. The paper costs $40 for a case of 10-500 sheet reams. The printer ink cartridges cost $120 each and print 10,000 sheets per cartridge. The printers must be serviced after every 10,000 copies at a cost of $75. The five printers, heavy duty hole punch, large volume stapler, computer, and monitor were all acquired at the same time in 2018, for a total cost of $55,000. They have an estimated life of 5 years with a salvage value of $6,000, and use straight-line depreciation.

The Printing Department is staffed by a director, supervisor, two technicians, and an assistant. They all work 40-hour weeks with no overtime at the following rates:

Director: Salary $52,000/year

Supervisor: Salary $45,500/year

Technicians: $18.00 /hour

Assistant: $15.00/hour

Benefits are calculated at 20% of their monthly gross pay.

A monthly overhead allocation is charged to the printing department for electricity, telephones, internet, and cleaning, at a rate of $0.05 per folder prepared.

REQUIRED: Better Skills has asked you to prepare their master budget for their fiscal year of March 2021 to February 2022. They need monthly production, labor, material purchases, income statement, and cash budgets. Use Microsoft Excel utilizing formulas and good statement formatting. If you make assumptions, please state them. However, your assumptions MAY NOT contradict any facts/data that has been presented in the problem.

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