It is October, Year $1.$ The annual budget process is about to begin and YOU are the new budget analyst for Jasmihne, Inc. You are gathering up information thatyou will need to use to put together the company's annual budget. The last budget analyst left things in a bit of a mess, so as you find out information, you've written it here to help you.

When working with units, round up to the nearest whole unit $-$ we cannot sell a partial unit

Jasmihne, Inc. makes and sells Product Omega One unit of Omega takes $3$ hours of labor to make, $4$ pounds of material A and $2$ pounds of material B

For the next budget year, the company VP of Sales believes company can sell $20,000$ units of Omega at $$210$ per unit

$15\%$ of annual sales are in the first quarter, $25\%$ in the second quarter, $40\%$ in the third quarter and the rest in Q$4.$

The company requires that at the end of each quarter, $20\%$ of the next quarter's demand for Omega is in finished goods inventory. The company will follow that policy in December Year $1.$

Material A costs $$10$ per pound, Material B costs $$14$ per pound; the company requires $10\%$ of the following quarter's forecasted demand for each material's use on hand at the end of each quarter. Materials are purchased in one$-$pound increments $($no fractions of a pound$)$

The company expects the average rate for assembly workers in Year $2$ will be $$16$ per hour

The company's annual depreciation uses straight$-$line depreciation on factory equipment of $$102,000($so divide by $4$ for quarterly depreciation$)$

Factory supervisor's salary is $$4,250$ per month, Factory property taxes are $$4,000$ payable in March

Factory maintenance workers are paid $$25$ per hour, and work $\mathrm{.}05$ hours for every unit produced.

The factory uses $$0\mathrm{.}50$ in cleaning supplies for every unit produced

Factory utilities are a mixed cost and need to be separated before they are analyzed using the high$-$low method

Annual depreciation on administrative office equipment is $$13,000$

Sales commissions are $$10$ per unit sold

Executive and administrative salaries are $12,000$ per month

Assume the company ships everything it makes in the month of production and shipping costs are $$2$ per unit

The plant$-$wide, predetermined overhead rate is calculated using direct labor hours.

$10\%$ of sales are cash and carry, $90\%$ of sales are on credit, $75\%$ of customers pay their accounts receivable in the current quarter, and the rest pay in the following

month. The company estimates $1\%$ of credit sales are uncollectible.

During the Q$3,$ actual costs for Material A was $$10\mathrm{.}85$ per pound, actual costs for material B was $$14\mathrm{.}70$ per pound, average assembly wages were $$17\mathrm{.}50$ per hour. Q$1$ Year $3$ Sales are forecasted to be $3,150$ units

Additional actual performance information for Q$3$ can be derived using the above information and the Actual Q$3$ results in the Flex Bud for Variances tab

Prepare the Year $2$ Quarterly Labor budget, include an annual total in the labor budget. Watch copying your formulas and watch your totals and subtotals!