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In Kingbird Corporation first year of operation , inadequate budgeting led to significant cost over runs n multiple production areas. Direct materials needed to be
In Kingbird Corporation first year of operation inadequate budgeting led to significant cost over runs n multiple production areas. Direct materials needed to be express delivered and laborers needed to be paid overtime because reasable budgets weren't in place, nor were managers properly trained on how yo use them. If adequate budgeted had been done the company might have acheived its objective that year. As year one come to a close all managers are now committed to creating and using accurate budget for next year so they can properly plan for the resources to support production. The following information is in place to assist the management team in budgeted for year Budgeted sales volume y q q q q year q q additional information : Budgeted selling price is $ unit Desired ending FG inventory is of the following quarter's sales volume. Begining FG Inventory on Jan of year is expected to be just units Each unit requires pounds of DM at an estimated cost of $ pound. Desired ending DM Inventory is of the following production in needs Each unit requires DL hours at an estimated cost of $hour Variable MOH is applied to units at a budgeted rate of $ unit produced. Quarterly Fixed MOH costs are expected as follows; depreciation on plant assets of $ supervisor's salaries of $ and property raxes and insurance $ Variable SG&A expenses are budgeted at a rate of $unit sold Quartely fixed SG&A expenses are expected as follows; sales salaries of $ advertising of $ and executive and administative salaries of $ Prepare the quartely sales budget for Kingbird for its second year of operation a prepare the quartely production budget for Kingbird for its second year of operations. Present budgeted amounts for each quarter and for the year overall.
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