Subject-Manegerial Accounting

Side notes: Our country was hit by the Pandemic in March of 2019, therefore the sales were normal in January and February. The information of pre-pandemic is given in the question but the information and values would be as you assume or see fit.So,the values of the post-pandemic is not given in the question.Our country sells only three types of burgers: beef, chicken and vegetarian burgers. As we are assuming the numbers and values for the budget for the post-pandemic, every increase or decreases in the values need to be explained.As a restaurant our main target should be keep the business going even after the pandemic.And every budgeting value needs to be explained.If you write the answers in papers make sure that I can see the whole thing and understand the handwriting or you can do it in MS Word.This is a project and as we are assuming values of raw materials or labour or MOH ourselves there is no right or wrong answer, the main focus should be the explanations behind the each value you assume. Taka(tk) is our country's currency.And if you can not see the picture of the question clearly, I am writing the whole question down below.

QUESTION

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

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)