File Home lnserl; Draw Page 1 of? 1073 words [Q P Type here to Search Design Layout English [Australia] case assignment - ta References Mailings Review View Help Case Details: Stylish Ltd sells two models of coffee tables: Casual and Deluxe, Direct materials inventory and nished goods inventory are costed using the rstin rstout (FIFO) method, Unit costs of direct materials purchased, and unit costs ofnished goods sold remain unchanged throughout the budget year, There are two types of direct materials namely XX and YY; XX is the material used as the legs of the table and W is the materials used as the surface top ofthe table, The height of the table is one meter, Direct manufacturing labour workers are hired on an houity basis and no overtime is normally allowed for. Frank Morton, one of the workers, however, frequently exceeds 40 hours per week that involved overtime payments. The manufacturing manager is generally happy with Frank's works, but the manager talks to Frank constantly about working more quiddy, Frank's overtime causes the actual direct labour costs to exceed the direct labour cost budget almost every month {reporting period) Direct manufacturing labourehours is the cost driver for the variable portion of manufacturing operations overhead The xed component of manufacturing operations overhead is tied to the manufacturing capacity of 300,000 direct manufacturing labourhours that Stylish has planned for 2021, Setup labourehours is the cost driver for the variable portion of machine setup overhead The xed component of machine setup overhead is tied to the setup capacity of 15000 setup labour-hours that Stylish has planned for 2021, There are two cost drivers for manufacturing overhead costs direct manufacturing labour-hours and setup labourhours, Stylish allocates all (variable and fixed) manufacturing overhead costs using direct manufacturing labour hours and machine setup overhead costs using setup labour-hours The manufacturing direct labour hours overhead costs budget for the year ending 30 June 2021 is $9,000,000 and the machine setup overhead costs budget is $3,000,000, Stylish Ltd applies activity-based budgeting whereby the number of 'Casual' tables to be produced in batch is 50 while the number of 'Deluxe' tables to be produced in batch is 40, The setup time per batch is 10 hours for 'Casual' table and 12 hours for 'Deluxe' table. Nonemanufacturing costs consist of product design' marketing, and distribution costs. All product design costs are xed costs for 2021 The variable component of marketing costs equals the 6.5% sales commission on revenues paid to salesperson. The variable portion of distribution costs is $2 per cubic meter oftables moved, The following data are available for the 2021 budget: _' is eioaaogl ,_ 17"C Clear {I}: Focus A 5 l3 Share VJ Comments ,_I_+ lamiaoime 853 PM 3W1 10096 e l nuts; , _ ._ . , {aseassigni'nent-S . Elilci'arnElliattarai File Home insert Draw Design Layout References Mailings Review View Help i3 Share VJ Comments Assessment 2 BACCZODS Direct material XX $7 per meter (same as 2020) Direct material W $10 per square meter (same as 2020) Direct labour $20 per hour Product design costs $1,200,000 (same as 2020) Fixed marketing costs $1,300,000 (same as 2020) Fixed distribution costs $1,250,000 (same as 2020) Content of each product (table): Casual Table Deluxe Table Direct material XX 12 m 12 M Direct material W 6 square m 0 square M Direct labour 4 hours 6 hours Changes in inventory level in nished goods inventory: Casual Table Deluxe Table Expected sales in units 50,000 10,000 Selling price $600 $000 Target ending inventory in units 11,000 500 Beginning inventory in units 1,000 500 Beginning inventory in dollars $384,000 $262,000 Changes in inventory level in direct material inventory: XX YY Beginning inventory 70,000 meter 60,000 sq, rn, Target ending inventory 80,000 meter 20,000 sq. m. Page 2 of? 1073 words [,0 English [Australia] [I31 Focus Ii 2 I + 10096 1e == P Type hereto Search 0 ea'il 17"CClear"@Ql)m6;mpu1' AutoSave ( Off) case assignment - Saved to this PC . Search Bikram Bhattarai X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Changes in inventory level in direct material inventory: XX YY Beginning inventory 70,000 meter 60,000 sq. m. Target ending inventory 80,000 meter 20,000 sq. m. Stylish Lid bases its budgeted cost information on the costs it predicts it will incur to support its revenue budget, taking into account the efficiency improvements it expects to make in 2021. Some suggested budgets that might be useful to prepare in table format are provided in the later pages of this assignment. Assessment 2 BACC2005 Requirements: 1. Complete all tables (from following pages) in Excel spreadsheet and submit as a separate file. 2. Discuss the results of sensitivity analysis of the changes in the selling prices Casual and Deluxe type), sales volume or any other material factors have on the operating income of Stylish Lid. The workings as well as the master budget (operating budget) needed for Stylish Lid may be included at the back of the assignment as appendix for the ease of reference in the writing and excluded in the word count. 3. Suggest what might be done to solve the problem or improve the situation of Frank Morton Appendix Revenues' budget For the year ending 30 June 2021 Quantity (units) Selling Price Total revenues Page 2 of 7 1073 words English (Australia) D, Focus + 100% O 9 6:58 PM Type here to search W 17"C Clear C D 1 ENG 27/09/202AutoSave ( Off) case assignment - Saved to this PC - Search Bikram Bhattarai X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Requirements: 1. Complete all tables (from following pages) in Excel spreadsheet and submit as a separate file. 2. Discuss the results of sensitivity analysis of the changes in the selling prices Casual and Deluxe type), sales volume or any other material factors have on the operating income of Stylish Lid. The workings as well as the master budget (operating budget) needed for Stylish Lid may be included at the back of the assignment as appendix for the ease of reference in the writing and excluded in the word count. 3. Suggest what might be done to solve the problem or improve the situation of Frank Morton. Appendix Revenues' budget For the year ending 30 June 2021 Quantity (units) Selling Price Total revenues Casual Deluxe Total Production budget (in units) For the year ending 30 June 2021 Casual Deluxe Budgeted unit sales Target ending finished goods inventory Total required units Deduct: beginning finished goods inventory Units of finished goods to be produced Direct materials usage budget (in units) For the year ending 30 June 2021 XX YY Direct materials required for Casual tables Direct materials required for Deluxe tables Page 3 of 7 1073 words English (Australia) D Focus + 100% 6:58 PM Type here to search O 17'C Clear ~ D C D 1 ENG 27/09/202File Harrie insert Draw Design Layout References Mailings Review View Help Direct materials usage budget (in units] For the year ending 30 June 2021 XX YY Direct materials required for Casual tables Direct materials required for Deluxe tables Assessment 2 BAC02005 Total quantity of direct materials to be used Direct materials usage budget (in dollars) For the year endin 30 June 2021 XX W Beginning direct materials inventory Purchased direct materials during the period Direct materials to be used Direct material purchases budget For the year ending 30 June 2021 Physical Units Budget To be used in production Add: Target ending inventory Total Requirements Less: Beginning inventory Purchases to be made (in quantity} Purchases in dollars Page 3 of? 1073 words [IQ English [Australia] .- P Type here to search 0 17"C Clear {I}: Paul; A 5 i3 Share VJ Comments |*|+ IBE'UE & as) ENG 853 PM 3W1 10096 e l AutoSave ( Off) case assignment - Saved to this PC - Search Bikram Bhattarai X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Direct labour cost budget For the year ending 30 June 2021 Output units Direct labour Total hours Hourly Total produced hours per unit wage rate Casual Deluxe Total Stylish Lid applies activity-based budgeting whereby the following information is available: Casual tables Deluxe tables Quantity of tables to be produced Number of tables to be produced per batch Number of batches Setup time per batch Total setup hours Setup-hours per table Assessment 2 BACC2005 Unit Costs of Ending Finished Goods Inventory Cost per "Casual' Total "Deluxe Total unit input input XX YY Direct labour Manufacturing overhead Machine setup overhead Total Page 4 of 7 1073 words English (Australia) D Focus + 100% O 17'C Clear ~ D 6 6 0 %% 1 ENG . 6:58 PM Type here to search 27/09/202AutoSave ( Off) case assignment - Saved to this PC - Search Bikram Bhattarai X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Unit Costs of Ending Finished Goods Inventory Cost per Casual Total 'Deluxe' Total unit input input XX YY Direct labour Manufacturing overhead Machine setup overhead Total Ending Finished Goods Inventories budget Quantity Cost per unit Total Casual Deluxe Total Cost of Goods Sold Budget For the year ending 30 June 2021 Beginning finished goods inventory, 1/7/20 Direct materials used Direct manufacturing labour Manufacturing overhead Cost of goods manufactured Cost of goods available for sale Less: Ending finished goods inventory, 30/6/21 Cost of goods sold Nonmanufacturing costs budget For the year ending 30 June 2021 Business function Variable costs Fixed costs Total costs Product design Marketing Distribution Total Budgeted income statement For the year ending 30 June 2021 Page 4 of 7 1073 words English (Australia) D Focus + 100% 6:59 PM Type here to search O 9 W 17'C Clear ~ 0 " D 1 ENG 27/09/202AutoSave ( Off) case assignment - Saved to this PC . Search Bikram Bhattarai X File Home Insert Draw Design Layout References Mailings Review View Help Share Comments Cost of goods sold Nonmanufacturing costs budget For the year ending 30 June 2021 Business function Variable costs Fixed costs Total costs Product design Marketing Distribution Total Budgeted income statement For the year ending 30 June 2021 Revenues Assessment 2 BACC2005 Cost of goods sold Gross Margin Operating costs Product design costs Marketing costs Distribution costs Operating income Page 5 of 7 1073 words English (Australia) D Focus + 100% 6:59 PM Type here to search O 17'C Clear ~ 0 4 0 ( ) ENG 27/09/202