Step 5: Budget

Your CEO has asked you to prepare a production cost budget for the MiniY for May 20X8. The actual costs in April 20X8 were:

MiniY: Production Cost Budget
April 20X8
ProductionUnits of MiniY	3,000
Components cost (variable)	24,000,000
Labor cost (variable)	13,500,000
Rent (fixed)	6,000,000
Depreciation (fixed)	6,000,000
Other (fixed)	2,000,000
Total	$51,500,000

For the month of May, the number of MiniY produced will increase to 3,200, reflecting an anticipated sales increase related to a new marketing campaign.

Question 5: Using the above information, prepare a budget for May 20X8 stating the total cost. Use a spreadsheet to display your data and calculations.

Before starting your calculations, review materials on integrating accounting and financial information.

Submit your Production Cost Budget Report and Calculations to the dropbox below. Be sure to show your calculations in Excel and provide a narrative analysis in PowerPoint. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of company.

Before you submit your assignment, review the competencies below, which your instructor will use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them in your work.

3.1 Identify numerical or mathematical information that is relevant in a problem or situation.

3.2 Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.

3.3 Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.

3.4 Employ software applications and analytic tools to analyze, visualize, and present data to inform decision-making.

10.5 Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions.