Subject-managerial accounting

Please do it in MS Word or you can write it in a copy but make sure I can see the whole thing and understand the handwriting. Some additional information I can provide you with is that Taka(tk) is our currency. And the pandemic hit our country in March of 2019. Therefore, all the numbers that you have to create a budget with for the post pandemic budget will be made up by you. Thus, every increase or decrease in any number or budget should be explained thouroughly.

Q) You are the manager of a fast food restaurant selling burgers since 2015. Information of your business in 2018 are as follows:

Selling price was 360 Taka

Average number of burgers sold each month was 420.

Annual sales growth was 10%

Selling price increases by 15% every year

Monthly average selling and administration cost of the restaurant was: Rent = 35,000 Taka per month

Utility = 21,000 Taka per month

Depreciation = 3,000 Taka per month

Salary of waiters = 15,000 Taka per month

During a normal situation, the following growth has been observed: Raw material cost increases by 10% every year

Labor cost increases by 5% every year

MOH cost increases by 10% every year

Selling and administration cost increases by 2% every year

Required:

Explain is short the production process of the restaurant to create a burger. (You must assume and explain what kind of raw materials might be needed to make a burger, what can be regarded as direct labor cost in relation to making a burger, what can be the MOH costs in relation to making a burger).

Make a Master Budget (Sales/Production/RM/Labor/MOH/Selling & Administrative/Cash budget) for the year 2019 (Pre CORONA virus year ) and another Master Budget for the year 2020 (CORONA virus year). You need to calculate your own production cost (raw material cost + labor cost + MOH cost) and beginning/ending inventory. Show details/breakdown of your calculation. All the production cost related figures should be based on assumption, however you MUST justify any assumption you make.

Give reasons for any changes in the assumptions between 2019 and 2020 Master Budget i.e., pre COVID 19 situation and during COVID 19 situation. Also keep in mind that due to the COVID 19 situation, the growth rate may be different than what has been observed during the normal scenario (mentioned above).

Note:

1. You must NOT go outside for data collection. You have to do the assignment based on your judgement and using the concept from books, slides, google, internet etc.

2.There is no word limit

The whole question is written in the writing space

THE WHOLE QUESTION ITSELF IS WRITTEN ABOVE THE PUCTURE!!!!!

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