Costs - Buildings 29. There are two buildings that CC utilizes in the operations of their company 30. The first building, the administration building is currently being rented for $10,000 per month 31 . The second building, the production facility is currently being rented for $8,000 per month 32. In October 2024, CC plans to renovate the lunchroom of their administration building. The renovation will cost$50,000 and construction will be completed at the end of October. The renovation will be paid for in cash after the project has been completed 33. Insurance for office building is $2,000 per month 34 . Insurance for the production facility is $5,000 per month Costs - Other 35. The administration team receives salaries totaling $50,000 per month 36. Two marketing campaigns will be run on Canadian television, the first one will run from January to June, where ads will be run consistently each month for $5,000 per month. The second one will be a "Back to School" campaign which will run in August and will cost $15,000 for the month 37. Payment for all marketing campaigns will be made in December 2024 38. CC has access to a line of credit from the Bank of Montreal, which carries an interest rate of 8.0% Question You have been hired as the Controller for the crayon department of Crayola Canada (CC). The Crayon Department in Canada will begin operations on January 01, 2024. The first task you have been assigned is the creation of the 2024 budget. Your CFO has provided you with some notes detailing the department's operations (see below) and would like you to use the notes to prepare all ten (10) schedules of the 2024 budget. Crayola Canada has a calendar fiscal year (January - December). Sales 1. Sales will be 30,000 boxes per month except for August ( 80,000 boxes) and September ( 120,000 boxes) 2. Monthly sales in 2025 will be 10% higher, than monthly sales in 2024 3. A box of crayons will sell for $11.49 in Jan, Feb, Aug, Sep, Oct, Nov, Dec and $13.49 in Mar, Apr, May, Jun, Jul 4. 65% of sales are collected in the month of the sale, 25% the following month, and 10% in the second month after the sale 5. To ensure a consistent supply of crayons, inventory at the end of each month must be 15% of the next month's total budgeted sales Costs - Production 6. Each box contains 24 crayons 7. Each crayon is made of three (3) grams of wax 8. Each crayon contains one (1) gram of colored dye 9. Each crayon contains one (1) paper sleeve 10. Each gram of wax costs $0.03 11. Each gram of dye costs $0.06 12. Each paper sleeve costs $0.02 13. The box the crayons are packaged in, costs $0.06 14. All direct material costs are paid for the month after they are purchased (ex: June materials are paid for in July) 15. Each employee can produce 20 crayons a minute 16. Employees are paid $22.50 per hour 17. All employees are paid on the 15th and 30th of every month 18 . The production warehouse supervisor receives a salary of $100,000 per year 19. There are 8 (eight) employees who are directly involved with the manufacturing of the crayons 20. The production facility has a fixed-rate utilities contract with Enmax where they will pay $3,800 per month from May to September and $4,600 per month from October to April 21. Variable Manufacturing Overhead will be $500 per day. The factory operates 365 days per year, so every day per month must be accounted for 22. The CEO receives a bonus of $0.10 for every box of crayons produced 23. The shipping cost is $0.05 for every box of crayons sold Costs - Equipment 24. CC has two types of assets, production assets and administration assets 25. The depreciation on the administration assets will be $5,000 per month until November 2024 , then it will jump to $8,000 per month when the lunchroom has been renovated (see below) 26. The depreciation on the production assets is $2,200 per month 27. CC will use straight-line depreciation on all production and administration assets 28 . CC will purchase manufacturing equipment in January at a cost of $250,000