Please help me with the budgeting exercises on the attachment below . I need help with accounting. please.

thank you.

Be sure that you take careful note of the following: Be sure that you change the file and the filename to include your name. When you are finished submit your completed exam in the documents area under "Test Chapters 7 to 11 Part 2 Submission" on MAL. Master Budget Master Budget 2 NPV IRR Inc Tax & Depr Accounting Rate of Return Flex Budget Filename File submitted correctly Total Points Possible Points 30 7 12 5 20 5 22 2 5 108 Your Score 0 0 0 0 0 0 0 0 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Score Brittany Lamps Sales Budget - November Forecasted Sales in Units Unit selling price $ Budgeted Revenues $ - Budgeted Budgeted Budgeted Budgeted 30 pts possible Selling Price per unit Cost of direct materials per Rate per direct labor hour Variable O/H rate per DL ho $50.00 8.85 15.00 1.50 Budgeted Variable Non-mfg costs as a % of sales dollars 5.00% Brittany Lamps Production Budget - November Units required for sales Add target ending inventory of finished goods Total finished goods required Less beginning inventory of finished units Units to be produced Brittany Lamps Direct Material Purchases Budget - November November Forecasted Sales in units 120,000 December Forecasted Sales in units Budgeted DM lbs per unit Budgeted DL hours per unit 108,000 2.75 1.50 Cost of Beginning Inventory $ 51.40 The desired ending inventory of materials equal 20% of the materials required to produce the following month's sales. Units needed for production Target ending inventory Total material to provide for Less beginning inventory of DM Units to be purchased * Unit purchase price Total purchase cost The desired ending inventory of finished goods is 13.5% of the following month's sales. The total fixed overhead for the company is $180,000 per month, of which 65% is incurred in the factory. Brittany Lamps Page 2 of 15 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Direct Labor Budget - November Units produced * Direct labor hours per unit Total budgeted hours for production * DL rate per hour Total DL Budget Brittany Lamps Cost per Finished Unit - November Brittany Lamps Manufacturing O/H Budget - November Direct labor hours * Var O/H per DL hour Variable Overhead Fixed Overhead Total DL Budget Direct Materials Direct Labor Variable Overhead Fixed Overhead Total Cost per unit Brittany Lamps Budgeted Cost of Goods Manufactured - November Direct Materials lbs needed for production * cost per DM lb. Direct Materials Used Direct Labor Total Overhead Cost of Goods Manufactured Brittany Lamps Page 3 of 15 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Budgeted Cost of Goods Sold - November Beginning Finished Goods Inventory + Cost of Goods Manufactured Cost of Goods Available for Sale - Ending Finished Goods Inventory Cost of Goods Sold Brittany Lamps Other Expenses Budget - November Nonmanufacturing Variable Expenses Nonmanufacturing Fixed Expenses Total Brittany Lamps Budgeted Income Statement - November $ Sales Less Cost of Sales Gross Margin Other Expenses Operating Income % Page 4 of 15 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Score Brittany's General Manager is recommending that the selling price be increased by 15%. If this happens it is expected that costs will remain the same but that units sold will decrease by 15,000 to 18,000. Should Brittany increase the selling price? Explain your answer. Use the space below for your responses. Brittany Lamps Sales Budget - November Forecasted Sales in Units Unit selling price Budgeted Revenues 7 pts possible $ $ - Brittany Lamps The details below relate to costs and quantities before considering the info above: Budgeted Selling Price per unit Budgeted Cost of direct materials per 8.85 Budgeted Rate per direct labor hour 15.00 Budgeted Variable O/H rate per DL hou 1.50 Budgeted Variable Non-mfg costs as a % of sales dollars 5.00% Production Budget - November Units required for sales Add target ending inventory of finished goods Total finished goods required Less beginning inventory of finished units Units to be produced November Forecasted Sales in units December Forecasted Sales in units Budgeted DM lbs per unit Budgeted DL hours per unit Cost of Beginning Inventory 120,000 108,000 2.75 1.50 $ 51.40 Brittany Lamps Direct Material Purchases Budget - November Units needed for production Target ending inventory Total material to provide for Less beginning inventory of DM Units to be purchased * Unit purchase price Total purchase cost The desired ending inventory of materials equal 20% of the materials required to produce the following month's sales. The desired ending inventory of finished goods is 13.5% of the following month's sales. The total fixed overhead for the company is $180,000 per month, of which 65% is incurred in the factory. Page 5 of 15 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Brittany Lamps Direct Labor Budget - November Units produced * Direct labor hours per unit Total budgeted hours for production * DL rate per hour Total DL Budget Brittany Lamps Brittany Lamps Cost per Finished Unit - November Manufacturing O/H Budget - November Direct labor hours * Var O/H per DL hour Variable Overhead Fixed Overhead Total DL Budget Direct Materials Direct Labor Variable Overhead Fixed Overhead Total Cost per unit Brittany Lamps Budgeted Cost of Goods Manufactured - November Direct Materials lbs needed for production * cost per DM lb. Direct Materials Used Direct Labor Total Overhead Cost of Goods Manufactured Brittany Lamps Budgeted Cost of Goods Sold - November Beginning Finished Goods Inventory + Cost of Goods Manufactured Page 6 of 15 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Cost of Goods Available for Sale - Ending Finished Goods Inventory Cost of Goods Sold Brittany Lamps Other Expenses Budget - November Nonmanufacturing Variable Expenses Nonmanufacturing Fixed Expenses Total Your Answer: Brittany Lamps Budgeted Income Statement - November $ Sales Less Cost of Sales Gross Margin Other Expenses Operating Income % Page 7 of 15 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx NPV A company is considering investing in some new technology that is expected to improve production efficiency and provide savings on operating costs. The initial investment is $1,425,000 and savings are expected to be $200,000 per year for the first 5 years and $140,000 per year for the next 3 years and $80,000 for the last 2 years. At the end of the useful life of the technology it is expected it can be sold for 15% of initial cost. The required rate of return is 11.35% Rate of Return 11.35% Cash Saviangs $140,000 Cash Saviangs $80,000 Initial Investment You can use either Method 1 or Method 2. $200,000 Salvage Value $214 Annual Cash Flows Method 1 Initial Investment Cash Savings Year 1 Cash Savings Year 2 Cash Savings Year 3 Cash Savings Year 4 Cash Savings Year 5 Cash Savings Year 6 Cash Savings Year 7 Cash Savings Year 8 Cash Savings Year 9 Cash Savings Year 10 Salvage Value Net Present Value NPV - Method 2 Initial Investment Cash Savings Years ( 1-5) Cash Savings Years ( 6-8) Cash Savings Years (9-10) Salvage Value NPV Present Value 0 (1,425,000) (1,425,000) 179,614 161,306 144,864 130,098 116,837 73,449 65,962 59,239 $30,400.31 27,302 73 (435,858) (1,425) 732,717 342,536 30,400 $72.95 1,104,302 1 2 3 4 5 6 7 8 200,000 200,000 200,000 200,000 200,000 140,000 140,000 140,000 (1,425) 200,000 200,000 8 of 15 200,000 200,000 200,000 586,351 140,000 140,000 140,000 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx IRR A company is considering investing in some new technology that is expected to improve production efficiency and provide savings on operating costs. The initial investment is $1,425,000 and savings are expected to be $200,000 per year for the first 5 years and $140,000 per year for the next 3 years and $80,000 for the last 2 years. At the end of the useful life of the technology it is expected it can be sold for 15% of initial cost. The required rate of return is 11.35%. What is the IRR for this project? Score 5 pts possible Annual Cash Flows Cash Flows IRR 0 2.25% (1,425,000) 1 200,000 2 200,000 3 200,000 9 of 15 4 200,000 5 200,000 6 140,000 7 140,000 8 140,000 9 80,000 10 80,000 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Inc Tax & Depr Cost of Investment Useful Life Recovery Period Tax Rate Annual Income Statement Effects Revenues Generated 510,000 Cash Operating Expenses 290,700 Depreciation Expense 86,000 Total Expenses 376,700 Operating Income before Taxes 133,300 Income Taxes Net Income 41,323 91,977 Total after-tax effect on cash Discount Rate Score 860,000 20 pts possible 10 years 10 years 31% 15.35% Compute the annual income statement effects; the annual cash flow effects and the NPV for this investment 177,977 Revenues - Cash Expenses - Taxes Annual Cash Flow Effects Cash effects of Operations Revenues Generated 510,000 Cash Operating Expenses 290,700 Pretax Cash Flows 219,300 PV Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 After tax impact 69.00% After-tax cash flows from operations 151317 $4,660 151,317 151,317 151,317 151,317 151,317 151,317 151,317 86,000 31% 26,660 177,977 15 pts $821 26,660 26,660 26,660 26,660 26,660 26,660 26,660 Cash Effects of Depreciation Depreciation Expense Tax rate Tax Savings from Depreciation Total Cash Effect after Taxes Initial Investment NPV of Investment $5,481 5 pts 10 of 15 aff31d55d03f761b16e9a4adf9257ad44943e060.xlsx Cost of Asset Annual Increase in Operating Income Annual Increase in after-tax income Accounting Rate of Return ARR $ 860,000 133,300 91,977 645.16% 935.02% Accounting Rate of Return (after taxes) 11 of 15 INTRODUCTION TO MANAGEMENT ACCOUNTING 16E Data Input Section: CNN London Motor Pool Kilometers per year per car Kilometers per liter per automobile Cost per liter of gas Cost per kilometer for oil, minor repairs, etc. Cost per automobile for outside repairs Actual number of cars in use during month Actual kilometers driven during month Output Section: Part 1. Should the supervisor be pleased or displeased with the March budget report? Discuss why. (3 pts) Part 2. Employing flexible-budgeting techniques, prepare a report that shows budgeted amounts, acutal costs, and monthly variation for March. CNN London Motor Pool Monthly Budget Report For March 20X1 Monthly March Over / Flexible Actual (Under) Budget Petrol (gasoline) Oil, minor repairs, etc. Outside repairs Insurance Salaries and benefits Depreciation Totals - - - For the convenien motor pool. The m when it acquired 5 and other supplie maintenance and garage. A superv Each year the sup management of th automobiles is rec The following sche actual costs for M INTRODUCTION TO MANAGEMENT ACCOUNTING 16E End of Problem For the convenien motor pool. The m when it acquired 5 and other supplie maintenance and garage. A superv Each year the sup management of th automobiles is rec The following sche actual costs for M INTRODUCTION TO MANAGEMENT ACCOUNTING 16E Score 22 pts possible For the convenience of its reporters and staff based in London, CNN operates a motor pool. The motor pool operated with 25 vehicles until Febrary of this year, when it acquired 5 additional automobiles. The motor pool furnishes petrol, oil and other supplies for the cars and hires one mechanic who does routine maintenance and minor repairs. Major repairs are done at a nearby commercial garage. A supervisor manages the operations. Each year the supervisor prepares an operating budget, informing CN management of the funds needed to operate the pool. Depreciation on the automobiles is recorded in the budget in order to determine the cost per mile. The following schedule presents the budget approved by the news division. The actual costs for March are compared with 1/12th of the annual budget. CNN London Motor Pool Budget Report for 2021 (MARCH) Petrol (gasoline) Oil, minor repairs, etc. Outside repairs Insurance Salaries and benefits Depreciation Totals Total kilometers Cost per KM Number of Automobiles Annual Monthly Over / March Actual Budget Budget (Under) ### 11,548 341,250 3,550 6,875 170 23,750 508 45,000 1,800 125,000 2,126 ### - 19,702 ### 218,750 25 275,000 25 Annual Budget Assumptions: 1. Automobiles in the pool 2. KM per year per auto 3. KM per liter of petrol. 4. Price per liter for petrol. 5. Cost per km for oil, minor repairs, parts etc. 6. Annual cost per automobile in outside repa 7. Annual Insurance per automobile 8. Annual Depreciation Exp per automobile 25 105,000 7.75 0.58 0.13 275.00 950.00 5,000.00 INTRODUCTION TO MANAGEMENT ACCOUNTING 16E For the convenience of its reporters and staff based in London, CNN operates a motor pool. The motor pool operated with 25 vehicles until Febrary of this year, 9.acquired KM driven in Marchautomobiles. The motor pool furnishes 275,000 when it 5 additional petrol, oil and other supplies for the cars and hires one mechanic who does routine maintenance and minor repairs. Major repairs are done at a nearby commercial garage. A supervisor manages the operations. Each year the supervisor prepares an operating budget, informing CN management of the funds needed to operate the pool. Depreciation on the automobiles is recorded in the budget in order to determine the cost per mile. The following schedule presents the budget approved by the news division. The actual costs for March are compared with 1/12th of the annual budget