Module 05 Discussion - Strategic Budgeting for Business Success The president of Coopie Awards was analyzing the actual and budgeted results of operations for the current year. She noticed several favorable variances and gave accolades to the production manager in a meeting. She also noticed that the sales variance was unfavorable and spent considerable time questioning the sales vice president She stated production hadn't managed costs so well to cover for your lack of sales we would have racked up quite a large net loss for the year." For your initial post, discuss your reaction to the president's comments, meeting demeanor, and professionalism. Would you have handled the situation the same if you were her? If not what would you have done differently? Why? After taking some time to reflect on the written assignment for the week regarding budget creation and variance analysis, address the following for your second post: Do you agree with the president's comments regarding the management of production costs and the lack of sales? Please explain your position Study the last tab of your budget assignment spreadsheet and complete a flexible budget on the tab. Where were costs actually in line and where were they out of line? What could have been done to produce more favorable numbers? Note that you will need to complete this tab before submitting your assignment to the drop box so your instructor can see your flexible budget In a third post this week, respond to a classmate who offered a different perspective than you did on either the professionalism of the president or the variance analysis completed Format Painter Clipboard Font Alignment Number DEFG H 1 Coopie Awards sold 43,000 brass plaques for the current year with the following results. In the discussion forum comment on Coople Awards results. 3 Hint: Preparing a flexible budget will help in analyzing the results. Please show the flexible budget on this tab. 6 Sales Revenue 7 Direct Materials costs 8 Direct Labor Costs 9 Overhead Costs 10 total dierct costs 11 Selling and administrative cost 12 operating income Budget based on Actual Results 45000 unis Variance $ 1,548,000 5 1,575,000 $27,000 Unfavorable 498000 518400 $20,400 Favorable 94800 99000 $4,200 Favorable 126000 126,000 $0 718,800 $ 743,400 $24,600 Favorable 700000 729550 $29,550 Favorable $ 129,200 $ 102,050 ($27,150) Favorable 15 Direct Materials Budget Direct labor cost budget Cost of Goods Sold Budget Selling and Admin Budget Income Statement Actual Results Home maent Dram Page Layout Formular Data non Van Help 8 Tal me what you want to do - Xcut Calibri Copy Currency B TU A . Merge $ Clipboard Font Agent 013 - 1575000 N O F G H I J K L M 1 Coopie Awards produces brass plaques. They operates in 3 regions of the country. The western region sales manager estimates sales of 20,000 plaques for the region. 2 The central regional manager estimates sales of 10.000 plaques for the region and the eastern sales manager estimatesses of 15.000 plaques for the regon Each for $35 4 Requirement: Prepare the sales budget for Coopie Awards 9 Region 10 Western 11 Central 12 Eastern 13 Total Units Coopie Awards Sales Budget For the current Year Sales Volume Selling Price Total Sales 20,000 $35 $700,000 10,000 $35 $350,000 15,000 $35 $525,000 45,000 $1,575,000 Beam Page Layout termelon Dune Review View More assignment mod_05 - Excel O Tel me what you want to do - Number Home est Xcut Copy Format Painter Clipboard - IX Calibri B I 1 . . A Wrap Text Merge Center - U . . $ % 2 Conditional Formatas Cell Formatting Table Styles Font Alignment Number B12 47000 1 Coopie Awards projected sales of 45,000 brass plaques for the year. The estimated January 1 inventory is 3,000 plaques, and the desired December 31 inventory is 5,000 units. 3 Requirement: Prepare the production budget in units for Coople Awards Coopie Awards Production Budget For the current year 8 Sales 9 Plus desired ending inventory 10 Total 11 Less estimated beginning inventory 2 Total Production 45,000 5,000 50.000 3,000 47,000 Selling and Admin Budget M Cost of Goods Sold Budget i s Budont Direct labor cost budget Draw format ul Page Layout n Review View a nert Xcut Copy Format Painter Clipboard Telme what you wote Calbei i + Merge Center - $ Forning Sy B15 536640 1 2 Coopie Awards budgeted production of 47,000 brass plaques for the year. 96 square inches are required for each brass plaque. The estimated January 1 raw sheet inventory is 140.000 The desired December 31 brass sheet inventory is 200,000 square inches Brash sheet costs $0.12 per square inch arenches 4 Requirement: Prepare the direct materials purchases budget for Coople Awards Coople Awards Direct Materials Purchases Budget For the current Year 9 Units Required for Production (47,000X96) 4,512.000 10 Plus desired ending inventory 200,000 11 Total Needed 4,712,000 12 Less estimated beginning inventory 240.000 13 Total units to be purchased 4.472.000 SO 12 14 Unit price 15 Total direct materials purchases $536,640.00 Cost of Goods Sold Budget Seling and Admin Budget Inc. Sales Budget Production Budget Direct Materials Budget Direct labor cost budget te O File Draw Page Layout Formulas Data Review View Help assignment mod_05 - Excel Tell me what you want to do Calibri Paste Home Insert of cut Copy - Format Painter ter Clipboard - X -11 - . .A Currency B T U . Wrap Text Merge & Center. $ . % ** Formatti Font Alignment B10 Number fx 112932 D E F G H I 1 Coopie Awards budgeted proction of 47,000 brass plaques. Each plaque requires 12 minutes of engraving. Engraving labor costs $11.00 per hour. 3 Required: Prepare the direct labor cost budget for Coopie Awards Coopie Awards Cost of Direct Labor Budget For the Current Year 8 Hours required for production (47,000x12/60) 9 Hourly rate 0 Total Direct Labor cost 9,400 $11.00 $112,932.00 0UIN Module 05 Discussion - Strategic Budgeting for Business Success The president of Coopie Awards was analyzing the actual and budgeted results of operations for the current year. She noticed several favorable variances and gave accolades to the production manager in a meeting. She also noticed that the sales variance was unfavorable and spent considerable time questioning the sales vice president She stated production hadn't managed costs so well to cover for your lack of sales we would have racked up quite a large net loss for the year." For your initial post, discuss your reaction to the president's comments, meeting demeanor, and professionalism. Would you have handled the situation the same if you were her? If not what would you have done differently? Why? After taking some time to reflect on the written assignment for the week regarding budget creation and variance analysis, address the following for your second post: Do you agree with the president's comments regarding the management of production costs and the lack of sales? Please explain your position Study the last tab of your budget assignment spreadsheet and complete a flexible budget on the tab. Where were costs actually in line and where were they out of line? What could have been done to produce more favorable numbers? Note that you will need to complete this tab before submitting your assignment to the drop box so your instructor can see your flexible budget In a third post this week, respond to a classmate who offered a different perspective than you did on either the professionalism of the president or the variance analysis completed Format Painter Clipboard Font Alignment Number DEFG H 1 Coopie Awards sold 43,000 brass plaques for the current year with the following results. In the discussion forum comment on Coople Awards results. 3 Hint: Preparing a flexible budget will help in analyzing the results. Please show the flexible budget on this tab. 6 Sales Revenue 7 Direct Materials costs 8 Direct Labor Costs 9 Overhead Costs 10 total dierct costs 11 Selling and administrative cost 12 operating income Budget based on Actual Results 45000 unis Variance $ 1,548,000 5 1,575,000 $27,000 Unfavorable 498000 518400 $20,400 Favorable 94800 99000 $4,200 Favorable 126000 126,000 $0 718,800 $ 743,400 $24,600 Favorable 700000 729550 $29,550 Favorable $ 129,200 $ 102,050 ($27,150) Favorable 15 Direct Materials Budget Direct labor cost budget Cost of Goods Sold Budget Selling and Admin Budget Income Statement Actual Results Home maent Dram Page Layout Formular Data non Van Help 8 Tal me what you want to do - Xcut Calibri Copy Currency B TU A . Merge $ Clipboard Font Agent 013 - 1575000 N O F G H I J K L M 1 Coopie Awards produces brass plaques. They operates in 3 regions of the country. The western region sales manager estimates sales of 20,000 plaques for the region. 2 The central regional manager estimates sales of 10.000 plaques for the region and the eastern sales manager estimatesses of 15.000 plaques for the regon Each for $35 4 Requirement: Prepare the sales budget for Coopie Awards 9 Region 10 Western 11 Central 12 Eastern 13 Total Units Coopie Awards Sales Budget For the current Year Sales Volume Selling Price Total Sales 20,000 $35 $700,000 10,000 $35 $350,000 15,000 $35 $525,000 45,000 $1,575,000 Beam Page Layout termelon Dune Review View More assignment mod_05 - Excel O Tel me what you want to do - Number Home est Xcut Copy Format Painter Clipboard - IX Calibri B I 1 . . A Wrap Text Merge Center - U . . $ % 2 Conditional Formatas Cell Formatting Table Styles Font Alignment Number B12 47000 1 Coopie Awards projected sales of 45,000 brass plaques for the year. The estimated January 1 inventory is 3,000 plaques, and the desired December 31 inventory is 5,000 units. 3 Requirement: Prepare the production budget in units for Coople Awards Coopie Awards Production Budget For the current year 8 Sales 9 Plus desired ending inventory 10 Total 11 Less estimated beginning inventory 2 Total Production 45,000 5,000 50.000 3,000 47,000 Selling and Admin Budget M Cost of Goods Sold Budget i s Budont Direct labor cost budget Draw format ul Page Layout n Review View a nert Xcut Copy Format Painter Clipboard Telme what you wote Calbei i + Merge Center - $ Forning Sy B15 536640 1 2 Coopie Awards budgeted production of 47,000 brass plaques for the year. 96 square inches are required for each brass plaque. The estimated January 1 raw sheet inventory is 140.000 The desired December 31 brass sheet inventory is 200,000 square inches Brash sheet costs $0.12 per square inch arenches 4 Requirement: Prepare the direct materials purchases budget for Coople Awards Coople Awards Direct Materials Purchases Budget For the current Year 9 Units Required for Production (47,000X96) 4,512.000 10 Plus desired ending inventory 200,000 11 Total Needed 4,712,000 12 Less estimated beginning inventory 240.000 13 Total units to be purchased 4.472.000 SO 12 14 Unit price 15 Total direct materials purchases $536,640.00 Cost of Goods Sold Budget Seling and Admin Budget Inc. Sales Budget Production Budget Direct Materials Budget Direct labor cost budget te O File Draw Page Layout Formulas Data Review View Help assignment mod_05 - Excel Tell me what you want to do Calibri Paste Home Insert of cut Copy - Format Painter ter Clipboard - X -11 - . .A Currency B T U . Wrap Text Merge & Center. $ . % ** Formatti Font Alignment B10 Number fx 112932 D E F G H I 1 Coopie Awards budgeted proction of 47,000 brass plaques. Each plaque requires 12 minutes of engraving. Engraving labor costs $11.00 per hour. 3 Required: Prepare the direct labor cost budget for Coopie Awards Coopie Awards Cost of Direct Labor Budget For the Current Year 8 Hours required for production (47,000x12/60) 9 Hourly rate 0 Total Direct Labor cost 9,400 $11.00 $112,932.00 0UIN