Prepare an Operating Budget using the budget scenairo and template.
Group 1-Rob's Shoes Rob's Shoes is a small social entrepreneurship company famous for its shoes, also known as "Robs," and its mission to give back. For every pair of Robs purchased, Rob's Shoes sends a Other data for Rob's Shoes: - Each pair of Robs is $50 - Projects to sell 500 pairs of shoes in the first quarter of 2023 , with sales increasing by 100 pairs of Robs each quarter - Finished Goods inventory on December 31,2022, consists Other data for Rob's Shoes: - Each pair of Robs is $50 - Projects to sell 500 pairs of shoes in the first quarter of 2023 , with sales increasing by 100 pairs of Robs each quarter - Finished Goods inventory on December 31, 2022, consists of 275 pairs of shoes at $20 each - Desired Ending Finished Goods Inventory is equal to 10\% of the next quarter's sales, FIFO inventory method is used - The company expects to sell 900 pairs of Robs in the first quarter of 2024 - Direct Materials cost is $10 per pair of Robs - Rob's Shoes desires for each quarter's ending balance in Direct Materials to be 30% of the next quarter's production needs. The desired ending direct materials balance for the 4 4uarter is \$2730. (Indirect materials are insignificant and not considered for budgeting purposes). - Each pair of Robs requires 2 hours of direct labor; direct labor costs average $10 per hour - Variable Manufacturing overhead rate is $3 per pair of Robs - Fixed manufacturing overhead consists of $1200 per quarter for depreciation and $500 per quarter for utilities, insurance, property taxes - Rob's Shoes uses direct labor hours (DL.Hr) as the allocation base to allocate overhead costs - Selling and administrative expenses include: - Insurance Expense, fixed \$100 per quarter Depreciation Expense, fixed $70 per quarter Supplies Expense, variable 1% of Sales Revenue per quarter Requirements 1. Using the provided Excel template prepare the following: a. Rob's Shoes 2023 operating budget - Sales budget - Production Budget - Direct materials budget, direct labor budget, and manufacturing overhead budget - Total projected Manufacturing cost - Cost of goods sold budget - Selling and administrative expense budget b. Rob's Shoes 2023 Budgeted Income Statement Group 1-Rob's Shoes Rob's Shoes is a small social entrepreneurship company famous for its shoes, also known as "Robs," and its mission to give back. For every pair of Robs purchased, Rob's Shoes sends a Other data for Rob's Shoes: - Each pair of Robs is $50 - Projects to sell 500 pairs of shoes in the first quarter of 2023 , with sales increasing by 100 pairs of Robs each quarter - Finished Goods inventory on December 31,2022, consists Other data for Rob's Shoes: - Each pair of Robs is $50 - Projects to sell 500 pairs of shoes in the first quarter of 2023 , with sales increasing by 100 pairs of Robs each quarter - Finished Goods inventory on December 31, 2022, consists of 275 pairs of shoes at $20 each - Desired Ending Finished Goods Inventory is equal to 10\% of the next quarter's sales, FIFO inventory method is used - The company expects to sell 900 pairs of Robs in the first quarter of 2024 - Direct Materials cost is $10 per pair of Robs - Rob's Shoes desires for each quarter's ending balance in Direct Materials to be 30% of the next quarter's production needs. The desired ending direct materials balance for the 4 4uarter is \$2730. (Indirect materials are insignificant and not considered for budgeting purposes). - Each pair of Robs requires 2 hours of direct labor; direct labor costs average $10 per hour - Variable Manufacturing overhead rate is $3 per pair of Robs - Fixed manufacturing overhead consists of $1200 per quarter for depreciation and $500 per quarter for utilities, insurance, property taxes - Rob's Shoes uses direct labor hours (DL.Hr) as the allocation base to allocate overhead costs - Selling and administrative expenses include: - Insurance Expense, fixed \$100 per quarter Depreciation Expense, fixed $70 per quarter Supplies Expense, variable 1% of Sales Revenue per quarter Requirements 1. Using the provided Excel template prepare the following: a. Rob's Shoes 2023 operating budget - Sales budget - Production Budget - Direct materials budget, direct labor budget, and manufacturing overhead budget - Total projected Manufacturing cost - Cost of goods sold budget - Selling and administrative expense budget b. Rob's Shoes 2023 Budgeted Income Statement
