Master Budgeting 351 EXHIBIT 8-4 Hampton Freeze: Budgeting Assumptions Hampton Freeze, Inc. Budgeting Assumptions For the Year Ended December 31, 2014 7 Budgeted sales in cases 10.000 30.000 40 000 20.000 Selling pnce per case 2000 Percentage of sales collected in the quarter of sale 10 Percentage of sales collected in the quarter after sale 13 Percentage of next quaters sales in ending finished goods inventory 18 Pounds of sugar per case 17 Cost per pound of sugar 18 Percentage ot next quarters producton needs in ending inventory Percentage of purchases paid in the quarter purchased 20 Percentage of purchases paid in the Quaner aner purchase 22 Direct Budget 2 Direct labor-hours required per case 24 Direct labor cost per hour S 1500 Manufacturing overnead Budget Vanable manufacturing overhead per direct labor-hour Fued manutacturing overhead per quarter S 60 600 23 Depreciation per quaner S 15 000 Seang and Admnstratve Expense Budget Vanable selling and aoministrative expense percase Fbed seling and adminstratove perse per quaner 20 000 38 Executive saanes 55 000 42 Mnimum cash balance s 50 000 s 40 000 s 20.000 s 20 000 s 8000 45 Smple interest rate per quarter Beginning lance Sheet B lor simplicity, we assume that all quarterly estimates, except quarterly unit sales and equipment purchases the same for all four quarters. will be Master Budgeting 351 EXHIBIT 8-4 Hampton Freeze: Budgeting Assumptions Hampton Freeze, Inc. Budgeting Assumptions For the Year Ended December 31, 2014 7 Budgeted sales in cases 10.000 30.000 40 000 20.000 Selling pnce per case 2000 Percentage of sales collected in the quarter of sale 10 Percentage of sales collected in the quarter after sale 13 Percentage of next quaters sales in ending finished goods inventory 18 Pounds of sugar per case 17 Cost per pound of sugar 18 Percentage ot next quarters producton needs in ending inventory Percentage of purchases paid in the quarter purchased 20 Percentage of purchases paid in the Quaner aner purchase 22 Direct Budget 2 Direct labor-hours required per case 24 Direct labor cost per hour S 1500 Manufacturing overnead Budget Vanable manufacturing overhead per direct labor-hour Fued manutacturing overhead per quarter S 60 600 23 Depreciation per quaner S 15 000 Seang and Admnstratve Expense Budget Vanable selling and aoministrative expense percase Fbed seling and adminstratove perse per quaner 20 000 38 Executive saanes 55 000 42 Mnimum cash balance s 50 000 s 40 000 s 20.000 s 20 000 s 8000 45 Smple interest rate per quarter Beginning lance Sheet B lor simplicity, we assume that all quarterly estimates, except quarterly unit sales and equipment purchases the same for all four quarters. will be
