this is the question
which solution is right? 1 or 2
solution 1
solution 2
Fast Mobile company approached you as Management Accounting expert to assist them in preparing their 2023 budget. They provided you with the following data: Expected number of units to be sold in 2023 o Model 1: 15,000 units o Model 2: 10,000 units Expected selling Price o Model 1: 5250 o Model 2: $200 Each model requires 5 components (camera, keypad, screen, frame, and motherboard), Model 1 has 2 cameras, while model 2 has only 1 camera. Component prices are as follows: o Camera: 515 o Keypads: 510 Screen: 520 Frame: $3 o Motherboard: $12 The company already had a beginning inventory of 2.000 units of each of the above components at a cost of: Camera: $12.50 Keypads: 59 Screen: $18 Frame: $2.75 o Motherboard: $11.50 No ending inventory of any component item or finished goods is required Both Mobile models need 5.5 hours of labor at a cost of $5.00 per hour! Overhead is allocated at a rate of $15 per direct labor hour. Required: Prepare the following for the year 2022 Sales Budget Component Budget o Direct Labor Budget An overhead Budget Prepare a budgeted partial income statement for 20235 "Grous Profit Une A.1) SALES BUDGET FAST MOBILE COMPANY SALES BUDGET MODEL I MODEL Sales units) 15000 10000 Selling prices) 250 200 Total saless) 3750000 2000000 2)COMPONENT BUDGET FAST MOBILE COMPANY COMPONENT BUDGET CAMERA KEYPADS SCREEN FRAME MOTHERBOARD TOTAL Units needed for production Model 1 30000 15000 15000 15000 15000 Model 2 10000 10000 10000 10000 10000 Add desired ending inventory 0 Total 40000 25000 25000 25000 25000 Less:beginning inventory 2000 2000 2000 2000 2000 Total units needed (purchase) 38000 23000 23000 23000 23000 Unit price SIS S10 $20 53 SIZ Total cost of component to be purchased 5570000 $230000 $460000 6000 5276000 S160500C 3)Direct labour budget FAST MOBILE COMPANY DIRECT LABOUR BUDGET No of units for cach model: Modell Model 2 10000 Total units 25000 Hours required per unit 5.5 Total hours needed for production 137500 Rate per hour S5 Total Direct labour cos (137500*55) 5687500 4)overhead budget FAST MOBILE COMPANY OVERHEAD BUDGET Total hours needed for production 137500 Rate per hour S15 Total overhead cost S2062500 B FAST MOBILE COMPANY PARTIAL INCOME STATEMENT Sales revenue S5750000 15000 Less Cost of goods available for sale S1712500 KS1605000-2000"(12.50 9+18+2.75-11.50) Direct labour S687500 Overhead cost S2062500 $4462500 Gross profit 51287500 Total 50s Description Medel Model 2 Emble IS 10.000 Sale Price 15 200 e Nevena 5 3.190.000 2.IS Sales Revenue Expected units to be sold Sale price per unit 21 Component Budget 4,750 Pote 15.00 La 2 Leone RA 13.000 0.00 Dorel RE 20 . 15 HUDO LI . 1.000 0.000 3.00 . caldo Derne 2010 15 15 Po w RE od of Meerboard 1.000 200 Co of other Tural Center All componente . LO Workings: Total Need of components Expected sales units required component per unit Required Purchase of Componentes Total need to components - Beginning wentory Total Cost of Components Required purchase of components rate per un 3) Direct Labor Budget Description Medel Model: Total Expected to le 15.00 10,000 Laborbu pa 53 SS Toller med 2x 55.00 ale per Sod S. Total of Labor S 412.500/65 275.000,00 5 687,500.00 Total Labor Hours required Expected units to be sale "Labor hours per unit Total Cost of Labor Total labor hours required rate per hour 4) An Overhead Bludget- Det Modeli Medel Total Laber House 82.500 55.000 Delicadasc per hour 5 1.005 15.00 Total Clericiales 5 1.237.50000S 825.000.0 52.062.500.00 Total Overhead Costa Total Labor hours required Overhead rate per hour 5) Partial income Statement trageted come Statement Partiel) For Pridad2021 Des Art 15 5. Les out of 154 anos 15 1.125
