PART A-8. Schedule showing the cost of each sports bag Cost of Each Golf Bag Qty Cost/unit Total Raw materials 0.50 18.00 9.00 Direct labour 0.25 21.00 5.25 Factory overhead 0.25 29.32 7.33 Do not add GST to this Budget. Raw Materials Half a metre of material is required per item at a cost of $18 per metre. 0.50 x 18.00 = ? Direct Labour It takes 1/4 hour to produce each item which is 0.25 at $21 per hour. 0.25 x 21.00 = ? Factory overhead application rate is ? per unit. 21.58 Then show a total for the above 3 items. PART A - 5. Factory overhead budget Bishop & Co Factory Overhead Budget For The Quarter Ended 30 September 2018 Jul Aug Sep Total Variable Expenses (Units*$7) Units Fixed Expenses 54,600 55,300 55,300 165,200 2,600.00 2,600.00 2,600.00 7,800 Total Factory Overhead $ $52,000 $52,700 $52,700 $157,400 PART A - 4. Direct labour budget (showing hours and $) Bishop & Co Directo Labour Budget For The Quarter Ended 30 September 2018 Jul Aug Sep Total Units To Produce Units 7,800 7,900 7,900 23,600 Direct Labour Time Per Uni Hrs/unit 0.25 0.25 0.25 0.25 Total Director Labour Hrs Req Hrs 1,950 1,975 1,975 5,900 Direct Labour per hr cost $ 21.00 21.00 21.00 21.00 Total Director Labour Cost $ $40,950 $41,475 $41,475 $123,900 PART A - 3. Direct material purchases budget Bishop & Co Direct Material Purchases Budget For The Quarter Ended 30 September 2018 Jul Aug Sept Total Oct Required Production Units 7,800 7,900 7,900 23,600 6,600 Required Materials at 1/2 metre/unit Metres 3,900 3,950 3,950 11,800 3,300 Add:Closing inventory Metres Materials Available Less: Opening Inventory Metres Metres Required Purchases in metres Metres 593 4,493 4,543 585 3,908 593 593 495 4,445 593 495 12,295 585 495 3,950 3,853 11,710 Required Purchases in $ $70,335 $71,100 $69,345 $210,780 Tip: In the TOTAL column, Opening Inventory is the opening inventory at the START of the period and the Closing inventory is the closing inventory in the END of the period. Don't add across the budget for these figures In this budget you need to start by converting units to required metres - refer to self Test 5.4 for a similar example, PART A - 2. Production budget (in units) Bishop & Co Production Budget (in units) For The Quarter Ended 30 September 2018 July August Sept Total Oct Nov Budgeted Sales Units 8,000 7,500 8,500 24,000 7,000 6,000 Add: Closing Inventory Units 3,000 3,400 2,800 2,800 2,400 Total Required Units 11,000 10,900 11,300 26,800 9,400 Less: Opening Inventory Units 3,200 3,000 3,400 3,200 2,800 Number of Units Plan To Produce Units 7,800 7,900 7,900 23,600 6,600 Tip: In the TOTAL column, Opening Inventory is the opening inventory at the START of the period and the Closing inventory is the closing inventory in the END of the period. Don't add across the budget for these figures PART A 1. Sales Budget - Bishop and Co Sales Budget For The Quarter Ended 30 September 2018 July August September Total Budgeted Sales (Units) 8,000 7,500 8,500 24,000 Sale Price Per Unit 39.00 39.00 39.00 39.00 Budgeted Sales (In $) 312,000 292,500 331,500 936,000 Finished Goods Closing stock to be 40% of next months sales 40% Opening Finished Goods in units 3,200 Direct materials Direct materials quantity per item 0.50 Direct material cost per metre 18.00 DM Closing stock to be 15% of next months production 15% Opening Raw Materials in metres 585 Direct labour Production time per Bag (15 mins) Hourly rate average 0.25 21.00 Factory Overhead Factory overhead $7.00 Depn Plant 2,600 Fixed costs per month (ex GST where relevant) Wages 11,700 Admin Expenses 3,900 Selling Expenses 8,500 Finance expenses (no GST) 650 Depreciation Office Furniture 1,300 Variable Variable Selling expenses 1.50