Master budget project for managerial accounting

D B Master Budget Project 1 2 3 Sales Projections in Units 21,675 January 23,032 February March 31,600 April 57.792 May 61,009 9 10 Projected Sales Price/Unit $ 211.00 11 12 Monthly Projected Selling & Administrative Expenses 13 Variable Cost/Unit $14.00 Fixed Costs $39,967 15 16 Production: 17 Desired Ending Inventory 39.1% 18 Beginning Inventory (new business) 0 19 20 Materials 1621 Desired Ending Inventory 29.9% Number of Materials per Unit 20.0 Projected Cost/Material Unit $5.00 24 Beginning Inventory (new business) 0 14 22 23 fi 25 2.00 $11.00 28 Direct Labor 27 Time per Unit (in hours) 28 Cost per Hour 29 30 Manufacturing Overhead 31 Variable Cost/Unit 32 Fixed Costs $5.00 $12.191 n 36 Description Data Sheet Sales Budget Produits E17 D E April 68,033 20.00 1,360,660 MATERIALS REQUIREMENTS BUDGET January February March Budgeted Production in Units 30,150 23,563 34,950 Material Unit 20.00 20.00 20.00 Direct Materials Needed for Production 603,000 471,260 699,000 Budgeted Direct Materials Ending Inventory 140,907 209,001 406,837 Total Budgeted Materials Needed 743,907 680,261 1,105,837 Budgeted Direct Materials Beginning Inventory 0 140907 209001 Budgeted Direct Materials Purchases 743,906.74 539,354.26 896,836.34 Cost per Unit of Material $5.00 $5.00 $5.00 Total Budgeted Material Cost $ 3,719,534 $ 2,696,771 $ 4,484,182 12 Material/unit 13 20.00 14 Cost per Unit of Material $ 5.00 Cost of Material per Product 15 10 11 10 H21 D E B DIRECT LABOR BUDGET January February March Budgeted Production in Units 30,150 23,563 34,950 2.00 2.00 2.00 5 Direct Labor Hours/Unit 6 Total Direct Labor Hours Needed Cost/Direct Labor Hour with Total Direct Labor Cost B 10 Direct Labor Hours/Unit You 11 12 Cost/Direct Labor Hour Cost of Direct Labor per Product 13 mount 14 15 16 the fi 17 B 19 20 21 22 ip ani x 23 Description Data Sheet Sales Budget Production Budget Materials Req. Bud tv A MacBook Air E F G D MANUFACTURING OVERHEAD BUDGET January February March Budgeted Production in Units 30,150 23,563 34,950 Variable OH Rate/Unit $ 5.00 $ 5.00 $ 5.00 Anticipated VOH Costs $ 150,750 $ 117,815 $ 174,750 Fixed OH Costs $12,191 $12,191 $12,191 Total Anticipated OH Costs $ 162,941 $ 130,006 $ 186,941 10 1 Predetermined OH Rate Total Estimated OH Costs (for the quarter) Total Estimated DLHs (for the quarter) 12 per DLH 13 14 18 Is MOH per Unit: Predetermined MOH rate DLHs per Unit MOH per Unit of Product 17 15 + 18 20 21 22 23 24 an 25 25 Data Sheet Sales Budget Production Budget Materials Req, Budget Direct Labor Budget M 4 tv A W MacBook Air og DII F7 DD SELLING & ADMINISTRATIVE EXPENSE BUDGET January February March Sales in Units Variable S&A Rate/Unit Anticipated Variable Costs Fixed S&A Costs Total Anticipated Selling & 0 Administrative Costs 1 2 33 14 15 16 17 18 19 20 21 22 23 Production Budget Materials Req. Budget Direct Labor Budget Manu OH B KON 4 (OE 30 stv B c BUDGETED PRODUCT COST PER UNIT 1 2 Amount Item 3 4 Direct Materials 5 Direct Labor 6 Manufacturing Overhead 7 Total Unit Cost 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 B PROJECTED INCOME STATEMENT January February March Sales in Units Sales Revenue Cost of Goods Sold: Gross Profit (Margin) Selling and Administrative (Operating) Expenses Operating Income 0 11 12 13 14 15 16 17 Direct Labor Budget Manu OH Budget Operating Budget Product Cost per Unit M tv A 3 4 5 Situation #1: 6 What would the effect be on the Projected Operating Income you decreased your selling price by 7% to match a price 7 change by one of your competitors? B 9 January multiply be on projected income statement by 93 10 February 11 March 12 13 Would you recommend this action? Yes No 14 Reasoning/Rationale: 15 15 17 Situation #2 18 What would the effect be on the Projected Operating Income if you decided to improve your product's quality by buying 19. a raw material that cost 15% more than your current material 20 21 January 22 February 23 March 24 25 Would you recommend this action? Yes No 25 Reasoning/Rationale: 27 28 29 30 Situation 3 31 What would the effect be on the Projected Operating Income you decided to remove executive bonus and decrease 32 your Selling and Administrative costs by 0% 33 34 January multiply be on projected income statement by 94 35 February 36 March 37 ipan 38 Would you recommend this action? Yes 30 Reasoning Rationale No Manu OH Budget Operating Budget Product Cost per Unit Projected Income Statement 4 tv 4 W MacBook Air 00 F7 DI F& DD FO FA F10