The Tamison Toy Company manufactures toy building block sets for children. Tamison is planning for 2025 by developing a master budget by quarters. Tamison's balance sheet for December 31, 2024, follows: (Click the icon to view the balance sheet.) Other budget data for TamisonToy Company: (Click the icon to view the other data.) Read the requirements. Requirement 1. Prepare Tamison's operating budget and cash budget for 2025 by quarter. Required schedules and budgets include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor hours. (Round all calculations to the nearest dollar.) Begin by preparing the sales budget. Requirement 1. Prepare Thompson's ogeraing budget and cash budget for 2025 by quaner. Required schedules and budpets include: salos budget, production budget, direct materials budpex, direct iabor budget, manufacturing overhesd budget, cost of goods sold budgot, selling and administrative expense budget, schedule of cash receipth. schedule of cash paryenents, and cash budget, Manufacturing ovethead cosits are allocated bused on direct liber hours. Iflound al caiculations to the nearest dotiar.) Begin by preparing the seles budget. Data table Requirement 1. Prepare Thomsson's operabing bubget and cash budget tor 2025 by quaher, Required schedules and budgets include: sales budget, production budget, direct materiats budget, direct laber budget, manufacturing overiead budget, cost of goods sold bubget, selling and soministrative expense budget, schedvile of cash receipts. schedsle of cash payments, and cash budget Marulacturing everthead costs are alfocated based on drect fabor houre. (Round at calloulation to the neareat dollar? Begin by preparing the sales budpet. More info [Ucless otherwise nobed, assume al of the following events ocounpd during 2024 and that any batances given aie stated as of December 31, 2024) a. Budgeted sales are 1,800 sets for the fint quarter and expected to increase by 200 sets per quater. Cash saies are expecied so be 30% of total soles, with the semaining 70% of sales on accocunt. Sets are budpeled to sel for $90 per set. b. Finshed Goods inventory on December 31, 2024, consuts of 100 sets at 535 each. c. Desied endimg Finished Goods inventory is 30% of the next quarters soles: finst ouarber sales for 2026 are expected to be 2.300 sets. Fifo imventoy cosing method is used. d. Raw Materisis tmentory en December 31, 2024, consints of 400 pounds. Derect materials recuirement is four pounds per set. The cost is $1 per pound e. Desined ending Raw Materials inventory is 10% st the next guarter's dired matedials neefed insignitant and not consibened for budjeting purposes. f. Each set resuires 0.20 hours of direct labor; diect labor conts average 8 per hour. 9. Wariable manulacturing pvenead is $1,60 per set. h. Fixed manutocturing evertead inclades $3000 per quarter in desreciabion and $11.022 per quarter for other obsts, such as utlities, insutance, and property taxes. for rent: $1,950 per quaher for insurance: and $1,000 per euanter for desreciation. 1. Variable selling and administrative expenses indude supelies at 2% of sales. k. Capial expenditures include $15.000 for new manulochiring eguipment, to be purchased and poid for in the first quarter. 1. Cash neceipts for sales on account are 50% in the quarter of the sale and 50% in the quarter flollowing the sale; Accounts Pecervable balance en Oecember 31, 2024, is expected to be recelved in the frst purposes. Acocunts Payable balarve on December 34, 2604, is expected to be paid in the first quarter of 2025 n. Direct labs, manulacturing overthead, and selling ard adrninittrafive costs ave paid in he quarter nourred. o. Income tax expense is projected at $2.500 per quarter and is paid in the cuarter incurred. p. Thompson deskes to maintais a minimum cash balasce of $25,000 and borrows from the local bank as needed in increments of $1,000 at the beginning of the quater, peincipal reparyments are made ar the begining of the quarter when excess funds ace avallable and in increments of 51,000 , intereat is 8\% per year and paid at the begirning of the quarter bosed on the amount outntanding fram the previcas quarter. 1. Piepare Thompsom's operating bubget and cash budget for 2025 by quarter. Required schedules and budgots include: sules budpot, production budget, ditect materials budgot, direct labor budpot, manutacturing ovethead budpet cost of gosds sold budpel, seling and administrative expense budget. schedule of cash receipts, schedule of canh perments, and cash budget. Mandacturing overtheas eesls are allocated based on direct labor hours. (Riound all calculations to the rearest dotar.) 2. Piepare Thombson's anfual finandial budget for 2025, induding budpeled inceme stalement and budgeted balance sheet. 3. Thompeon soid 7,600 sets in 2025, and is actual operating income was as follows. Prepare a flowble budget performance teport Evrouph operating inceme for 2025. Show product costs imentory having a diferent cost than those prostoced and seld in 2025 , ansume the foloning sroduct eoets: 4. What was the effect on Thompsor's operating income of seling 400 sets mone than the statio budpet ievel of sales? 5. What is Thempsoch stafic budget variance for ecerating income? 6. Explain why the flexele budget performance report provides more uselul inlormation to Thompson's managens then the stakic budget performance sesert. What insights can Thompterrs managers draw fom this performance report? 7. During 2025, Thompton resonded the following cost data below. Compole see cost and efficiency variances for dinect materials and direct labee. 50 71 9: 8. For manufacturing overthebd, compule the vanabie oventead cost and efficiency variances and the fored overthead cost and volume variances. 9. Prepare the standard coat income statement for 2025 . 10. Calculate Thompson's ROI for 2025. To calculabe average total assets. vae the December 31, 2024 balance sheet for the teginning balance and the tudgeted thalance sheet for Dectmber 31, 2085, lor the ending baiance. Alound all of your anawers to four decimat places