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because of chegg hiring policy, questions 1-4 have already been answered. therefore posting again to answer the remaining subparts. Questions 1-4 is shown by the photo provided by another chegg expert in case more information is needed to answer the questions below.

The FireGlobe Company manufactures fire pits in the shape of the earth (The Globe). The company makes a very popular 34-inch diameter globe made of two quarter inch mild steel shells that are welded together and fixed to a base ring. The Globe is then cut to show in relief the major continents of earth. Production involves some basic assembly welding and hours of precision welding of the stenciled earth pattern. Specialized cutting equipment and heavy machinery to lift the globes is required. Each finished unit weighs approximately 200 pounds. Other than some basic packaging materials (wooden pallet and cardboard) and welding supplies, which are treated as indirect materials, no other materials are required. FireGlobe is preparing budgets for the third quarter ending September 30, 2020. For each requirement below prepare budgets by month for July, August and September, and a total budget for the quarter.

..... (see photo for questions 1-4)........

5. FireGlobe budgets indirect materials (e.g., welding supplies and packaging materials) at $40 per globe. Utilities cost per globe is $50. FireGlobe treats indirect labor as a mixed cost. The variable component is $100 per globe. The following fixed costs per month are budgeted for indirect labor, $5,000, depreciation, $15,000, and other, $6,000. Prepare a Manufacturing Overhead budget.

6. Variable selling and administrative expenses consist of outward freight ($250 per globe) and sales commission (10 percent of the selling price per globe). Fixed selling and administrative expenses include webpage fees ($1,500 per month), administration ($40,000 per month) and marketing ($35,000 per month). Prepare an Operating Expenses budget.

7. Prepare a Budgeted Manufacturing Cost per unit budget. Refer to exhibit 9-11 for guidance. To calculate FMOH/unit calculate total FMOH for the year and divide this by budgeted production for the year. The total production volume for the year is budgeted at 1,500 globes.

8. Prepare a Budgeted Income Statement for the quarter for FireGlobe. Assume interest expense of $0, and income tax expense of 21% of income before taxes. FireGlobes goal for the quarter is to make its net income greater than 5% of its sales revenue. To determine whether the company achieves the goal, use @IF function. In the IF function, you need to label Achieved if it achieves the goal (if the condition is met) or Not Achieved if it does not achieve (if the condition is not met). Use the CELL right next to Net Income cell to make the IF function that returns one of the labels based on whether the condition (net income > sales revenue*5%) is met or not.

Directions:

Refer to Chapter 9 (The Master Budget) for guidance in setting up your budgets and schedules. Adapt your schedules for the specific details outlined in the requirements above. Prepare your budgets using Excel. Use formulas and cell references so that any change you make in one budget is carried through to all the budgets. There should be no hard keyed numbers in your formulas. For example, if you change the sales volume increase from 20% to 25%, then you should see effects of that change throughout the other budgets. Likewise, if the budgeted selling price per globe changes from $1,595 to $1,855, then your spreadsheet model should be able to quickly and easily accommodate this change, i.e., change the input cell for budgeted selling price and see the effect on income.

The spreadsheet will be graded on presentation, correctness, and quality of your spreadsheet model (i.e., does it update correctly for changes in input variables). See the grading rubric on Canvas. You should approach this assignment as if you are the Management Accountant at the FireGlobe Company and you are going to present these budgets in a meeting to the CEO, CFO, and other management personnel.

Some general principles to follow in constructing your Excel spreadsheet model:

1. Prepare an input area in which you enter all input variables e.g., selling price, budgeted volume increase, feet per globe, ending inventory percentage, etc. You may use the Assumptions tab of the sample spreadsheet or a designated area within your budget spreadsheet, as long as the input area is clearly labeled and neatly organized

2. Each schedule should refer to the input area for each constant data value (see sample spreadsheet file). To the extent possible, keep all constant values together in one area of the worksheet. An important principle of good spreadsheet design is to keep just one copy of each constant value. That is, enter a constant value in only one location in the worksheet. Then if you use the value in another cell, use a cell reference that refers to the constant value's unique location.

Example (hypothetical): You enter the constant value of 6% for sales tax in cell E5. When you write a formula in your worksheet that requires sales tax, reference E5 in the formula instead of "hard coding" in the 6% value.

Do: =subtotal*E5

Don't: =subtotal*6%

3. Use cell references for constant data values and to calculate formulas within your spreadsheet. There should be no hard-keyed numbers in your formulas. For example, the formula to determine current period sales in units should reference an input cell with last years sales volume and a cell with the volume percentage increase.

4. Label and format appropriately e.g., use $ to format dollar amounts, format cells for decimal places, etc

Answer 1: Eormula: Answer: 2: Formula: Answer: Eormula Answer: 4 Formula As per Chegg hiring policy of multiple sub parts have been posted, only the first four sub parts can be answered. To get answered remaining sub parts, please post a separate question for that. Thank you Answer 1: Eormula: Answer: 2: Formula: Answer: Eormula Answer: 4 Formula As per Chegg hiring policy of multiple sub parts have been posted, only the first four sub parts can be answered. To get answered remaining sub parts, please post a separate question for that. Thank you