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AutoseOOD Excel TemplateAssignment_Ch09 (1) Excel Search File Home Insert Page Layout Formulas Data Review View HelpDYMO Label QuickBooks u28 X for A B C C D D E F G H J K L 1 CD9 Creative Designs 2 Diane Buswell is preparing the 2017 budget for one of Creative Design's rotomolded kayaks. Extensive meetings with 3 members of the sales department and executive team have resulted in the following unit sales projections for 2017 M N Quarter 1 Quarter 2 Quarter 3 Quarter 4 1,000 kayaks 1,500 kayaks 750 kayaks 750 kayaks 10 Creative Designs' policy is to have finished goods ending Inventory in a quarter equal to 20% of the next quarter's anticipated 11 sales. Preliminary sales projections for 2018 are 1.100 units for the first quarter and 1,500 units for the second quarter. Ending 12 Inventory of finished goods at December 31, 2016, will be 200 rotomolded kayaks. 13 Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company 14 policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next 15 quarter. Assume that the ending Inventory of polyethylene powder on December 31, 2016 is 19,400 pounds. The finishing kits 16 can be assembled as they are needed. As a result, Creative Designs does not maintain a significant inventory of the finished kits 17 The polyethylene powder used in these kayaks cost $1.50 per pound, and the finishing kits cost $170 each. Production of a 18 single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees 19 The type 1 employees are paid $15 per hour, and the type ll employees are paid $12 per hour 20 Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7,500 per quarter. Manufacturing 21 overhead is assigned at 150% of labor costs. 23 Instructions 24 Prepare the production budget, direct materials budget direct labor budget, manufacturing overhead budget, and selling and 25 administrative budget for this product Ine by quarter and in total for 2017 26 NOTE: Enter a number in cells requesting a valuo; enter either a number or a formula in cells with a "?". X8 CREATIVE DESIGNS Production Budget For the Year Ending December 31, 2017 te Insert Page Layout Formulas Home Data View Review Help DYMO Label QuickBooks A B C D CREATIVE DESIGNS Production Budget For the Year Ending December 31, 2017 150 Expected unit sales Add: desired ending finished goods units Total required units Less: beginning finished goods units Required production units Quarter 1 Quarter 2 Quarter 3 Quarter 4 1,000 1,500 300 150 1,300 1,650 900 970 200 -300 - 150 1 100 1.350 750 820 Total 4,000 820 4,820 -800 4,020 CREATIVE DESIGNS Direct Materials Budget For the Year Ending December 31, 2017 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Units to be produced 1,100 13507508204,020 Pounds of polyethylene powder per unit x 54 lbs x 54 lbs x 54 lbs. x 54 lbs. x 54 lbs. Total pounds needed for production 59,400 72.90040,500 44,280 217,080 Add: desired ending inventory of powder 18,225 10,125 11,070 15,930 55,350 Total pounds of powder required 77,625 83,025 51,570 60,210272,430 Less: beginning inventory of powder -19,400 -18,225 -10 125 -11,070 -58.820 Pounds of polyethylene powder to be purchased 58,22564,800 41, 445 49,140 213,610 Cost per pound x $1.50 x $1.50 x $1.50 x $1.50 x $1.50 Cost of polyethylene powder to be purchased $87 338 $97,200 $62 168 $73 710 $320, 415 Cost of required finishing kits 165,000 202 600 112 500 123 000 603,000 Total costs for direct materials 5252 338 5299 700 $174,668 5196,710 $923, 415 1 09: 29: 49.11 29-1A 3:5ACD9 Seed destination and press ENTER O cox Paste Home Insert Page Layout Formulas Data Review View Help DYMO Label QuickBooks - F G H CREATIVE DESIGNS Direct Labor Budget For the Year Ending December 31, 2017 Units to be produced Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 1,100 13507508204,020 X2 Number of hours of more skilled labor/unit Total number of hours of more skilled labor Hourly rate for more skilled labor Total cost of more skilled labor X 2 X2 22002700 x $15 x $15 $33,000 $40,500 X2 X2 1500 16408048 x $15x $15x $15 $22,500 $24,600 $120.720 Units to be produced Number of hours of less skilled labor/unit Total number of hours of less skilled labor Hourly rate for less skilled labor Total cost of less skilled labor Total cost for direct labor 1,100 X3 3,300 $12 39,600 $72,600 1350750 X3 X 3 4,050 2,250 |x $12 x $12 48,600 27.000 $89,100 $49,500 820 4,020 X 3 X3 2,460 12,060 x $12x $12 29,520 144,720 $54,120 $265,400 CREATIVE DESIGNS Manufacturing Overhead Budget For the Year Ending December 31, 2017 Total costs for direct labor Manufacturing overhead rate per direct labor dollar Manufacturing overhead costs Quarter 1 Quarter 2 Quarter 3 Quarter 4 $72,600 $89.100 $49,500 $54, 120 x 150% x 150% x 150% X 150% $108,900 $133,650 $74 250 $81,180 Total $265,400 x 150% $398 160 E9-2 19: 4 69-11 P9-1A ||P9-5A ed destination and press ENTER O choose Paste CD9 home insert Page Layout Formulas Data Review View HelpDYMO Label QuickBooks . : fc GHLIK CREATIVE DESIGNS Manufacturing Overhead Budget For the Year Ending December 31, 2017 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Total costs for direct labor $72,600 $89,100 $49,500 $54,120 $265,400 Manufacturing overhead rate per direct labor dollar x 150% X 150% x 150% X 150% x 150% Manufacturing overhead costs $108,900 $133,650 $74,250 $81, 180 $398, 160 CREATIVE DESIGNS Selling and Administrative Budget For the Year Ending December 31, 2017 Expected unit sales Variable selling and administrative costs @ $45/unit Fixed selling and administrative costs Total selling and administrative costs Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total 1,000 1,500 750 750 4.000 $45,000 $67,500 $33,750 $33,750 $180,000 7.500 7.500 7.500 750 30,000 $52,500 $75,000 $41 250 $41250 $210,000 Assume that each kayak requires 55 pounds of polyethylene powder and that ending Inventory of polyethylene powder changed to 20% of the amount needed for production in the next quarter. Show the impact of these changes on the budgets. E9- 219: 4 9:11P9-1A | P9.5ACD9