Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ii) Treehouse Furniture manufactures a variety of desks, chairs, tables and shelf units which are sold to public school systems throughout Queensland. The accountant of
ii) Treehouse Furniture manufactures a variety of desks, chairs, tables and shelf units which are sold to public school systems throughout Queensland. The accountant of the company's School Desk Division is currently preparing a budget for the first quarter of 20x9. The following sales forecast has been made by the division's sales manager. January February March 5,000 desk and chair sets 6,000 desk and chair sets 7,500 desk and chair sets Each desk and chair set requires 10 metres of pine planks and 1.5 hours of direct labour. Each set sells for $50. Pine planks cost $0.50 per metre and the division ends each month with enough wood to cover 10 per cent of the next month's production requirements. The division incurs a cost of $20.00 per hour for direct labour wages and fringe benefits. The division ends each month with enough finished goods inventory to cover 20 per cent of the next month's sales. Required: Provide the following budget schedules. a) Sales budget (in sets) for January, February, and March. (2 marks) b) Production budget (in sets) for January and February
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started