Rob's Shoes is a small social entrepreneurship company famous for its shoes, also known as "Robs," and its mission to give back. For every pair of Robs purchased, Rob's Shoes sends a pair of Robs to a child in need. Each pair of Robs sells for $50. Rob's Shoes' balance sheet for December 31,2022 follows: Other data for Rob's Shoes: - Each pair of Robs is $50 - Projects to sell 500 pairs of shoes in the first quarter of 2023, with sales increasing by 100 pairs of Robs each quarter - Finished Goods inventory on December 31, 2022, consists of 275 pairs of shoes at $20 each - Desired Ending Finished Goods Inventory is equal to 10% of the next quarter's sales, FIFO inventory method is used - The company expects to sell 900 pairs of Robs in the first quarter of 2024 - Direct Materials cost is $10 per pair of Robs - Rob's Shoes desires for each quarter's ending balance in Direct Materials to be 30% of the next quarter's production needs. The desired ending direct materials balance for the 4th quarter is $2730. (Indirect materials are insignificant and not considered for budgeting purposes). - Each pair of Robs requires 2 hours of direct labor; direct labor costs average $10 per hour - Variable Manufacturing overhead rate is $3 per pair of Robs - Fixed manufacturing overhead consists of $1200 per quarter for depreciation and $500 per quarter for utilities, insurance, property taxes - Rob's Shoes uses direct labor hours (DLHr) as the allocation base to allocate overhead costs - Selling and administrative expenses include: Salaries Expense, fixed $1,500 per quarter Rent Expense, fixed \$1,200 per quarter Insurance Expense, fixed $100 per quarter Depreciation Expense, fixed \$70 per quarter Supplies Expense, variable 1% of Sales Revenue per quarter Requirements 1. Using the provided Excel template prepare the following: a. Rob's Shoes 2023 operating budget - Sales budget - Production Budget - Direct materials budget, direct labor budget, and manufacturing overhead budget - Total projected Manufacturing cost - Cost of goods sold budget - Selling and administrative expense budget b. Rob's Shoes 2023 Budgeted Income Statement Rob's shoes Manufacturing Overhead Budget For the Year Ended December 31,2023 Rob's Shoes is a small social entrepreneurship company famous for its shoes, also known as "Robs," and its mission to give back. For every pair of Robs purchased, Rob's Shoes sends a pair of Robs to a child in need. Each pair of Robs sells for $50. Rob's Shoes' balance sheet for December 31,2022 follows: Other data for Rob's Shoes: - Each pair of Robs is $50 - Projects to sell 500 pairs of shoes in the first quarter of 2023, with sales increasing by 100 pairs of Robs each quarter - Finished Goods inventory on December 31, 2022, consists of 275 pairs of shoes at $20 each - Desired Ending Finished Goods Inventory is equal to 10% of the next quarter's sales, FIFO inventory method is used - The company expects to sell 900 pairs of Robs in the first quarter of 2024 - Direct Materials cost is $10 per pair of Robs - Rob's Shoes desires for each quarter's ending balance in Direct Materials to be 30% of the next quarter's production needs. The desired ending direct materials balance for the 4th quarter is $2730. (Indirect materials are insignificant and not considered for budgeting purposes). - Each pair of Robs requires 2 hours of direct labor; direct labor costs average $10 per hour - Variable Manufacturing overhead rate is $3 per pair of Robs - Fixed manufacturing overhead consists of $1200 per quarter for depreciation and $500 per quarter for utilities, insurance, property taxes - Rob's Shoes uses direct labor hours (DLHr) as the allocation base to allocate overhead costs - Selling and administrative expenses include: Salaries Expense, fixed $1,500 per quarter Rent Expense, fixed \$1,200 per quarter Insurance Expense, fixed $100 per quarter Depreciation Expense, fixed \$70 per quarter Supplies Expense, variable 1% of Sales Revenue per quarter Requirements 1. Using the provided Excel template prepare the following: a. Rob's Shoes 2023 operating budget - Sales budget - Production Budget - Direct materials budget, direct labor budget, and manufacturing overhead budget - Total projected Manufacturing cost - Cost of goods sold budget - Selling and administrative expense budget b. Rob's Shoes 2023 Budgeted Income Statement Rob's shoes Manufacturing Overhead Budget For the Year Ended December 31,2023
