Chhemical 7areh Financial Planning and Analysis: The Master Budget Chapter 9 402 that are sildto Desk f desks. e h Problem 9-37 Scholastic Furniture, Inc. manufactures a variety public school systems throughout the Midwes he vear. The followins forecast has been made x are as t s cur Completion of Budget rently preparing a budget for the second quarter by the division 109.3, 9-5, 9-6) 10.000 desk-and- 2 Planned production, June: Anri 12.000 desk and mal et 15.000 sets 4 Planned drect-labor cost May: $378,000 May 15.000 desk and s tornes are 15 hours of direct labor. Each set sell ion ends cach moath with enoug t requires 10 board feet of pine p th Each desk-and-chair u, Pine pla t month's production requirements. The division incurs a cost of $20 per hour Gocause for $5 eroducts rema for direct-labor wages and fringe benefits. The division ends each month with enough finished-o inventory to cover 20 percent of the next month's sales. The raw-mater w Material Complete the following budget schedules. Required: Ginma 1. Sales budget: Mrad May June April 10,000 Sales (n sets) x$50 Sales price per set Raw-material i ming of a year $500 000 Sales revenue 2. Production budget (in sets): The conversion re t hour and Nore May June April Sales 10,000 Add: Desired ending inventory Total nequirements 2,400 3,000 bgred: 12.400 ermine Em Less: Projected beginning inventory 2,000 Planned production 10.400 2 Determine Em & Assuming the chases budget 3. Raw-material purchases: April May June Planned production jsets) 10,400 e that fo Raw material required per set (board feet slin sa However, Phili products by 10 production, su Raw materisi required for production (board feet) 104.000 Add Desired endng inventory of rew material, in board feet (10% of next month's requirement 12.600 16,000 ny impact of 116.600 less Projected beginning inventary of raw material, In board feet (10% of curent morth's reaurement) Planned purchases of raw material board feet dspted 10,400 106.200 Cost per board foot x$ 50 Vist Electronics, I Planned purchases of raw material jdolars $53,100 l year, Erica 4. Direct-labor budget: Sales forecastf April May lune Planned production (sets Directiahor hours Product 10,400 r set x15 coll co Direct labor hours requred 15.600 Cost per hour x$20 Panned direct-labor cost.. aw-aterialp $312,000 5. Build a spreadsheet: Construct an Excel spreadsheet to solve all of the g requirements he solution will change if the following information changes: cach set sells for S55 and RMaterial Show how the direct-labor cost per hour is $21