Part 1. Budget estimations The Morpheus company has an industrial actiyity. It manufactures in its workshops two types offinished products {red pills and blue pills} from two raw materials {Zion powder and gelatin}. The red pill frees those who consume it from the enslaying control ofthe Matrix. and the blue pi|| allows it to remain in the fabricated reality ofthe Matrix. In September of year \"i", Director Morpheus hires you as a management controller and asks you to build the budget for year'tIr + 1. It proyides you with the following forecast information. A. Sales As, usually, consumers mostly choose blue pills, the sales goals [in quantities} for years '1", 'I"+1 and 'l"+2 are the following: Unit sales prices; identical to those of year '1", are estimated at: m\" 350 Blue ills 21 Based on preyious years. it can be assumed that at the end of year Y + 1, 10513 of sales will not be collected giyen the payment period granted to customers. It should also be noted that in order to be able to deliver its customers quickly, the company always keeps a stock of finished products corresponding to 10% of the expected sales of the following year, for both red and blue pills of the period considered [here the year}. The inventory yaluation method used is the Fl FD method. B. Production 3. Direct production costs The production department estimated that for Y + 1 the quantities of raw materials necessary to produce pills would be: M Since the blue pill has no effect, no Eion powder is required to make it. Forecasts for the unit purchase cost of raw materials are as follows: m 1:-;5Derk For the 'r' + 1 budget, concerning the Eion Powder bought from the supplier Oracle, it is estimated that 3 months {on average] of purchase, that is 25% ofthe amount of raw material purchases, will not yet be paid to the suppliers at the end of December, clue to the payment terms granted by this supplier. For Gelatin, however, the supplier The Merovingian does not grant us any payment term. In addition, there are no stocks of raw materials [neither for Zion powder nor for gelatin}, the Oracle and the Merovingian are on site and immediately deliver the necessary raw materials to us. Production labour is considered a direct variable cost of production. Indeed, the Morpheus company uses temporary workers {the inhabitants of lion] to adjust the need for labour to fluctuations in production. According to the operating schedule, reviewed by the production manager, Neo, the manufacturing duration for each ofthe two products are as follows: According to the director, the average hourly cost of production labour should be in year 'r" + 1 of 1? {including social charges}. Salaries are paid within the month; therefore, there are no payment delays on salaries. b. Manufacturing overhead costs The cost of machines used in production is considered an overhead {indirect} charge as the machines are used to produce the two finished products. In addition, this cost is considered fixed and corresponds to the depreciation expenses of the machines. The machines started to be operated on January 1 of year '1" and their value is reported in the balance sheet. The depreciation of these machines is done on a straight-line basis over 8 years, with no residual value at the end of the depreciation period. The annual salary cost of the production manager, Mr. Neo, is also considered as an overhead fixed production charge and is estimated at 2 N N+1 + Montant Total a Total a Qte Prix Total des ventes compter Qte Prix Total compter (10%) (90%) Pilules 125 350 E 43 750 E 4 375 E 150 350 E rouges 52 500 E 47 250 E Pilules 600 bleues 210 E 126 000 E 12 600 E 700 210 E 147 000 E 132 300 E Total I 16 975 E 179 550 E Total II 196 525 E X P 9 S N A Z 12:14 15/12/202312,000 for the year 1" + 1. These overhead fixed charges are used 80% for the production of blue pills and 20% for the production of red pills. Disbursable charges are paid within the month. There are also variable overhead production costs. They are gene rated by the use of machines. For 'I" + 1, the estimated time related to the use of machines per nished product are as fol lows: Machine time I nished 30 minutes 15 minutes product units produced These overhead variable production costs correspond to various maintenance products, lubrication and the energy required to operate the machines. In total, they are estimated at 10 per machine hour for year if + 1. They are all paid during the month in which they are consumed. G. Neu-menu'l'ec'l'uring overhead costs A sales representative, Trinity, was hired by the company. His annual salary for '1" + 1 is estimated at 1 T0,000. In addition, two new ships, the Logos and the Hammer, will be purchased to defend Sion against the Sentinels for a total estimated amount of 200,000 euros. The purchase will be made and paid for on year 'I"+1, July 1. The machines will be amortized on a straightline basis over 10 years. Your predecessor had already prepared an estimate of the balance sheet at year 1", December 31{in Euros}. There were also some elements on his way of building it. _m usharbankammmm mam customrmwames 3...... mm... prom 1mm 3...... some. _m mm... 3mm mm... depreciation 241115.56 Ton-MM mama c=e_ 21mm mmmm sm-=kmmers*equiw Part 2. 1iil'ariancc anales In fact, fewer and fewer people want to see realityr in the face, and free themselves from the grip of the Matrix. A vear later, the Matrix companv therefore recorded the following achievements for N + 1: Actual .uanti uroduced units * * Please note thatI to calculate the cost variances, it will therefore be necessarv to consider the quantities {of finished products] to be produced from the production budget calculated in the Budget section , as well as the other budgetarv data pertaining to raw materials and direct Ia hour. In addition, the costs of raw materials and direct labour were in realitv: Actual unit cost of Eion Powder 3,000 The WEI: i5 in line With what was [per kg} expected Actual unit cost of gelatin {per kg} 1,?00 A Sentinel attack during the year made the extraction of gelatin more difficult Actual cost per hour of direct 19 A social movement ofthe inhabitants of production labour Zion pushed Morpheus to agreed with a salaryr increase In addition, the quantities actuallv consumed of raw material and direct labor in the production ofthe pills were: Actual total quantities consumed Red pills Blue pills Total Eion powder raw material 3,1 lkgi Total direct production labour [hours] 1000 In addition, the sales data actuallv realized for \"i" + 1 are as follows: Actual unit Actual quantities sold {units} sale: price Blue tills 236 These are to be compared to the sales budgetarv data. as given in the first part of this test. Finally, the market size that had been anticipated was 1,000 units. In realitv, the market size was for if + 1 of 1,050 units