I'm working on a course project I see that some people have already posted answers but I'm not sure what formulas they used to get what they got. The part im struggling with is the overhead at fixed maintenance. The other one im struggling with for the formulas are the units for cost under the cost of goods

Fantastic, Inc Historical Information Sales in Gallons Year 2001 2002 2003 2004 2005 Super 411,000 412,000 405,000 430,000 420,000 Stupendous none none 186,250 223,500 268,200 Projected Selling Price for 2006 per gallon Super Stupendous $10.30 $15.45 Inventory and material information Desired Ending Beginning Inventory Inventory 56,550 cans 61,700 cans Cans Pigment Super Stp'dous Finished Good Inv Super Stp'dous 63,300 lbs 49,700 70,000 53,750 lbs 31,700 gal 24,850 gal 35,000 gal 27,000 gal 2005 Prices Cans Super pigment Stupendous pigment $0.40 $2.75 per pound $3.75 per pound Expected 2006 prices: Cans Super pigment Stupendous pigment $0.02 increase over 2005 prices $0.14 increase over 2005 prices $0.19 increase over 2005 prices Usage Standards Super Stupendous 2 pounds per gallon 2 pounds per gallon Direct Labor and machine hour information information 2005 labor rate - both departments $8.25 per hour Expected 2006 rate increase $0.25 Per hour rate increase over 2005 Production standards and information Machine hours/gallon Labor hours per machine hr. 2005 machines available Annual capacity per machine Machine hours per machine Maximum annual hours per employee Employees per supervisor Super 0.12 hours 1.25 hours 26 15,000 gal 1,800 hours 2,000 hours 8 Stp'dous Variable $0.20 per gal Fixed 0.12 hours 1.25 hours 20 15,000 gal 1,800 hours 2,000 hours 8 Overhead information 2005 information Indirect materials Indirect labor rate-annual Employee fringe benefits Health benefits per employee Utilities Maintenance Insurance Property taxes Supplies Depreciation - mfg $50,000 per supervisor 20% of wages $1,500 per employee $0.40 per Mhr $0.20 per Mhr $10,000 $50,000 $10,000 $5,000 $250,000 annually* annually* annually* annually* annually** * These items are allocated to dpts based upon production levels in gallons **The 2005 alloction ws $141,300 for Super and $108,700 to Stupendous It is expected that the following changes will occur in 2006: Indirect materials Indirect labor rate-annual Employee fringe benefits Health benefits per employee Utilities Maintenance Insurance Property taxes Supplies Depreciation - mfg 2005 equip Depreciation- new purchases Variable no change Fixed 2.50% increase per employee no change $200 increase per employee no change $0.05 inc.per Mhr $500 annual increase* $500 annual increase* 8% annual increase* $200 annual increase* no change Five year life** * These items are allocated to dpts based upon production levels in gallons **The 2005 alloction ws $141,300 for Super and $108,700 to Stupendour 2005 depreciation Super $141,300 Stupendous $108,700 Cash Purchases for each new piece of equipment Increase Debt $25,000 $5,000 Selling department information 2005 information Variable Commissions Salaries Fringe benefits Health benefits Advertising Meals&entertainment Depreciation Fixed $0.35 per can $15,000 per representative 20% salaries $1,500 per representative 20% commissions per 100 cans $10 sold $50 per week per representative $7,500 It is expected that the following changes will occur in 2006: Variable Commissions Salaries Fringe benefits Health benefits Advertising Meals&entertainment Depreciation Fixed no change no change No change no change salaries $200 increase per representative per 100 cans $12 sold $60 per week per representative no change It is expected number of sales reps Employees during 2006 10 Administrative Department Information 2005 information Variable Salaries Fringe benefits Health benefits Professional fees Office supplies Telephone Depreciation Fixed $250,000 annual 20% wages $1,500 per employee $20,000 annually $0.03 per gal sold $0.02 per gal sold It is expected that the following changes will occur in 2006: $6,000 annually Variable Salaries Fringe benefits Health benefits Professional fees Office supplies Telephone Depreciation 3% annual increase no change $200 increase per employee $1,500 annual increase $0.01 inc per gal sold $0.0025 inc per gal sold no change It is expected number of admin. Employees during 2006 It is expected that interest rates will be 2005 Balance sheet Cash Account receivable Inventory - raw materials Inventory - finished goods Plant and equipment Less accumulated depr Fixed 150,000 827,000 383,037 551,835 1,775,000 -615,000 Total assets 3,071,872 Accounts payable Accrued wages Accrued other Long-term debt Common stock Additional Paid-in Retained earnings 383,016 76,097 74,083 1,125,000 400,000 495,000 518,676 Total liab and equity 3,071,872 9 7.50% se per employee se per employee ek per representative se per representative ek per representative se per employee Fantastic, Inc. Sales Volume Projection Sales in Gallons Year 2001 2002 2003 2004 2005 Super 411,000 412,000 405,000 430,000 420,000 Stupendous none none 186,250 223,500 268,200 Super Paint Volume Projection using Exponential Smoothing Actual Sales Year in Gallons Weight 2001 411,000 2002 412,000 2003 405,000 2004 430,000 2005 420,000 Totals Weighted Sales 1 411,000 2 824,000 3 1,215,000 4 1,720,000 5 2,100,000 15 Sales Volume Projection for 2006 6,270,000 Stependous Paint Volume Projection using Growth Function Known x's Known y's New x Year Stupendous Year 2003 186,250 2006 2004 223,500 2005 268,200 Projection of Stupendous 2006 sales volume $321,840 418,000 Fantastic Inc. Sales Budget For the Year Ended December 31, 2006 Super Paint Projected Sales Volume Selling Price Projected Sales Stupendous Paint Total 418,000 $10.30 321,840 $15.45 739,840 $4,305,400 $4,972,428 $9,277,828 Fantastic Inc. Production Budget For the Year Ended December 31, 2006 Super Paint Stupendous Paint Total Projected Sales Volume Desired Ending Inventory 418,000 35,000 321,840 27,000 739,840 62,000 Units Needed Beginning Inventory 453,000 31,700 348,840 24,850 801,840 56,550 Projected Production 421,300 323,990 745,290 Fantastic Inc. Direct Materials Budget For the Year Ended December 31, 2006 Super Paint Stupendous Paint Cans (Units) Projected Production-gallons Desired ending inventory xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx 745,290 61,700 Units needed Beginning inventory(gal) xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx 806,990 56,550 Purchases needed Cost per unit xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx xxxxxxxxxxx 750,440 $0.42 Cost of can purchases xxxxxxxxxxx xxxxxxxxxxx $315,185 Pigments (pounds) Projected Production-gallons Pounds per gallon 421,300 2 323,990 2 Pound needed for production Desired ending inventory 842,600 70,000 647,980 53,750 Pounds needed Beginning inventory 912,600 63,300 701,730 49,700 Purchases needed in pounds Cost per pound 849,300 $2.89 652,030 $3.94 $2,454,477 $2,568,998 Cost of pigments xxxxxxxxx xxxxxxxxx Total $5,023,475 $5,338,660 Fantastic Inc. Direct Labor Budget For the Year Ended December 31, 2006 Stupendous Paint Super Paint Projected employees needed Projected production Machine hours needed per gallon 421,300 0.12 323,990 0.12 Machine hours needed Labor hours per machine hours 50,556 1.25 38,879 1.25 Labor hours needed Maximum hours per employee 63,195 2,000 48,599 2,000 32 25 63,195 $8.50 48,599 $8.50 537,158 107,432 54,400 413,092 82,618 42,500 $698,989 $538,210 Projected employees needed Projected Labor costs Labor hours needed (from above) Predicted labor rate Labor dollars needed Direct labor fringe benefits Direct labor health benefit Total Direct labor costs Total Please use ROUND function here 57 Watch for rounding here!! Please be sure this is a w Remember to round up! Suggestion - use ROUND 950,249 This is the total wage figu 190,050 This is an "other expense 96,900 This is an "other expense $1,237,199 OUND function here Watch for rounding here!! Please be sure this is a whole number Remember to round up! Suggestion - use ROUNDUP function. This is the total wage figure for cash payments and accrual This is an "other expense" This is an "other expense" Fantastic Inc. Manufacturing Overhead Budget For the Year Ended December 31, 2006 Stupendous Paint Super Paint Number of supervisors Direct labor employees needed Direct labor employees/supervisor Supervisors needed Manufacturing Overhead Variable overhead Indirect materials Utilitities Variable maintenance Total variable overhead Fixed Overhead Supervisor salaries Supervisor fringe benefits Supervisor health insurance Fixed maintenance Insurance Property taxes Supplies Depreciation - manufacturing Total fixed overhead Total manufacturing overhead Total 32 8 25 8 4 4 8 $84,260 20,222 12,639 $64,798 15,552 9,720 $149,058 35,774 22,359 117,121 90,069 207,191 205,000 41,000 6,800 205,000 41,000 6,800 252,800 252,800 505,600 $369,921 $342,869 $712,791 0 410,000 82,000 13,600 0 0 0 0 0 Watch for whole number here! Use round up function Remember to depreciation old and new equipment Fantastic Inc. Capital Expenditures Budget For the Year Ended December 31, 2006 Stupendous Paint Super Paint Machine hours needed Machine hours per machine Total 50,556 1,800 38,879 1,800 29 26 22 20 Machine purchases needed ($30,000 per machine) Cost per machine 3 $30,000 2 $30,000 $30,000 Total cost of desired purchases $90,000 $60,000 $150,000 Cash outlay for purchases Increase in debt for purchases $15,000 $75,000 $10,000 $50,000 $25,000 $125,000 Number of machine needed* Machines Jan 1, 2006 Remember to round up to a * Remember to round up! For example: If you calculation determines that you will need 30.1 machines, you will have to purchase 31 machines. Remember to round up to a whole machine!! Fantastic Inc. Budgeted Cost of Goods Manufactured For the Year Ended December 31, 2006 Direct Materials Beginning Direct Materials Inventory Material Purchases $383,037 Remember to look at the Beginning Balance Sheet 5,338,660 Direct materials available for use Ending Direct Materials Inventory 5,721,697 439,989 Total Raw Materials Used 5,281,708 Direct Labor Overhead 1,237,199 712,791 Cost of Goods Manufactured. $7,231,697 Units costs for products Super Stupendous Cost of materials per unit Total $0.00 Unit cost for Direct labor Unit Cost for overhead Total unit cost for 2006 production Units in finished goods inventory Value of finished goods inventory $0 $0 $0 t the Beginning Balance Sheet Remember the cost of the cans Use this figure on the ending balance sheet Fantastic Inc. Selling Department Budget For the Year Ended December 31, 2006 Fixed Variable Commissions Salaries Selling fringe benefits Selling health benefits Advertising Meals & Entertainment Depreciation Totals $0 Total $0 $0 $0 $0 Fantastic Inc. Administrative Budget For the Year Ended December 31, 2006 Fixed Salaries Administrative fringe benefits Administrative health benefits Professional fees Office supplies Telephone Depreciation Total administative costs Variable Total $0 $0 $0 $0 $0 $0 Fantastic Inc. Budgeted Income Statement (Absorption) For the Year Ended December 31, 2006 Sales $0 Cost of Sales Beginning finished goods inventory Cost of goods manufactured $0 Remember to look at the beginning balance sheet Good available for sale Ending inventory Remember to look at COGMfg statement Cost of goods sold Gross margin 0 Selling expenses Administrative expenses Total selling and admin. Expenses Operating Income Interest expense Income before tax Income tax (40% rate) Net income $0 ning balance sheet Fantastic Inc. Cash Budget For the Year Ended December 31, 2006 Increase in Cash Cash receipts Cash payments for materials Wages and commissions paid Other expenses paid Interest paid on long-term debt Income taxes paid Cash paid for new fixed assets Long-term debt repayment Dividend paid Decrease in Cash Total $0 $0 Total increases and decreases Prior year cash xxxxxxxxxx xxxxxxxxxx Cash balance December 31, 2006 xxxxxxxxxx xxxxxxxxxx Use this balance on the balance sheet Fantastic Inc. Balance Sheet December 31, 2006 Assets Cash Accounts receivable Inventory - raw materials Inventory - finished goods Plant and equipment Less accumulated depreciation $0 Remember to look at the COGMfg Remember to look at the COGMfg Total Assets Liabilities Accounts payable Accrued wages Accrued other Long-term debt $0 $0 Be sure NOT to include employee benefits Do not include non-cash expenses but remem Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings $0 0 Total stockholders' equity Total liabilities and stockholders' equity $0 er to look at the COGMfg er to look at the COGMfg NOT to include employee benefits clude non-cash expenses but remember employee benefits Strengths&Weaknesses - and Recommendations What strengths does Fantastic, Inc. have? What weaknesses does Fantastic, Inc. have? What are your recommendations