Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dubai Technologies Company approached you as a Business Consultant to assist them in preparing their 2021 Master Budget. You have been provided with the following

image text in transcribed
image text in transcribed
Dubai Technologies Company approached you as a Business Consultant to assist them in preparing their 2021 Master Budget. You have been provided with the following data: The company is manufacturing and selling TWO models of a branded Smart Phone: XYZ Plus o XYZS Expected number of units to be sold in 2021 XYZ Plus: 150,000 units XYZ: 100.000 units Expected selling Price: XYZ Plus: AED1500 per unit XYZs: AED 1000 per unit Each model requires 5 components (raw materials): Camera (XYZ Plus has 4 Cameras, while XYZs has only 2 Cameras). o Keypad o Screen o Frame o Motherboard. Purchasing prices for the five components are as follows: Camera: AED 90 o Keypads: AED 60 o Screen: AED 120 Frame: AED 18 Motherboard: AED 72 The management policy is no ending inventory of any component item or finished goods is required Each Mobile model requires 5.5 hours of labor at a cost of AED 40.00 per hour to be manufactured Manufacturing Overhead is allocated at a rate of AED 60 per Direct Labor Hour. Selling and Admin variable expense rates per unit of sales are sales commissions AED 5 and freight-out AED 2 Selling and Admin fixed expenses include Depreciation AED 16,000, Salaries AED 20,000 and maintenance AED 8000 for each model Interest is AED 10,000 and Taxes are AED 50,000 Required: Prepare the following for 2021: Sales Budget Components (Direct Material Purchases) Budget Direct Labor Budget An overhead Budget Selling and Administrative Budget Prepare a budgeted income statement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Fundamentals Of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W. Maher

6th Edition

1260569098, 9781260569094

More Books

Students also viewed these Accounting questions

Question

Expand and simplify the given expression. (3 + 0.1) 4

Answered: 1 week ago