this part is all filled out below to help you solve the rest

first sheet: Ch22 Master Budget Blank

Secobd Sheet: Ch22 Master BudgetSolution

Sheet Three: Ch24 Standard Cost Change Info

Shert four: Ch24 Standard Costs

Now i want tou to use the informatuon from above to help you solve the blanks below.

Sheet five: Actual 2022 Income Statement

Sheet six: 2023 Master Budget

Sales in the previous year were 500 units. They are bringing on a new customer and management is expecting a 35% increase in 2022. They will increase the selling price to $3,500 this year to account for anticipated rising costs. At the end of last year, there were no boats lett in inventory to sell in 2021. Managenent would like to start 2022 with inventory on hand. They would iike to budget to end 2022 with 25 completed and finished units. Management expects to end last year with some direct materials. They want to make sure that at the end of 2022 , they have enough direct materials on hand to start production right away in 2023. Sundancer, Inc. Direct Materials Budget For the Year Ended December 31, 2022 Direct Materials Budget 52 Total materials required 53 Less: Beginning direct materials in pounds (ending balance 2020) 54 Direct materials purchases 55 Cost per pound 56 Total cost of Metal Parts direct materials purchases 57. 58 Required production units 99 Paint and Stickers Direct materiais pounds per unit produced: 60 Total pounds needed for production 61 Add; Desired ending direct materials in pounds (ending balance 2022) (2) Total materials required 63 Less: Beginning direct materials in pounds (ending balance 2020) 64 Direct materials purchases 65 Cost per pound 66. Total cost of Paint and Stickers direct materials purchases \begin{tabular}{|rr|} \hline & 355,000 \\ \hline 1,000 \\ \hline & 354,000 \\ \hline$ & 0,50 \\ \hline 5 & 177,000 \\ \hline \end{tabular} 67. Total cost of ALL direct materials purchases 5778,800 Management expects that it will take 25 hours of direct labor to manufacture each boat. Direct labor is billed at $20 hour. Sundancer, Ine. Direct Labor Budget For the Year Ended December 31, 2022 Required production units Direct labor time (hours) per unit Total required direct labor hours 1 Direct labor cost per hour Total direct labor cost \begin{tabular}{|rr|} \hline & 700 \\ \hline & 25 \\ \hline 5 & 17,500 \\ \hline 5 & 20 \\ \hline \end{tabular} Manufacturing overhead applied to the boats is related to machine hours used. It will take 100 machine hours per boat and the cost is \$8/hour. Management also anticipates the following fixed costs. These have increased slightly frem 2020. 97 95 Bullding and Equipment Depreciation 99 Company insurance Tha Cempany Advertising col Administrative Salaries and Benefits $80,000$17,0005123,0005330,000 96 Management also anticipates the following fixed costs. These have increased slightly from 2020. 97. 98 Building and Equipment Depreciation 99 Company Insurance 100 Company Advertising 101 Administrative Salaries and Benefits $60,000$17,000$123,000$330,000 Sundancer, Inc. Selling and Administrative Expense Budget For the Year Ended December 31, 2022 106 Fixed expenses 100 Building and Equipment Depreciation 110 Company Insurance 111 Company Advertising 112 Administrative salaries and benefits 113 Total selling and administrative expenses \begin{tabular}{|rr|} \hline 5 & 60,000 \\ \hline 5 & 17,000 \\ \hline 8 & 123,000 \\ \hline 5 & 330,000 \\ \hline 5 & 530,000 \\ \hline \end{tabular} Management had to borrow some money from the bank to start the business five years ago. As a result, they still have some interest expense. It is $10,000 per year. Management anticipates a 21% tax rate for 2022 . 121 interest expense 128 incom before income taxes 129 Income tax expense 130 Net Income \begin{tabular}{|rr|} \hline & 10,000 \\ \hline$ & 202,500 \\ \hline & 42,525 \\ \hline 5 & 159,975 \\ \hline \end{tabular} 132. "Suppiemental Schedule-COGS Cost Budget per Unit 133 Cost Element 134 Plastic Parts Direct materials: 135 Metal Parts Direct materials: 136 Paint and stickers Direct materials: 137 Direct labor 138 Manufacturing overhead - Machine hours \begin{tabular}{|r|l|} \hline \multicolumn{2}{|c|}{ Quantity } \\ \hline 400 & pounds \\ \hline 500 & pounds \\ \hline 10 & pounds \\ 225 & hour \\ \hline 100 & hour \\ \hline \end{tabular} Unit Cost Total 130 Total COGS Budget per Unit \begin{tabular}{|lr|rr|} \hline$ & 2.00 & $ & 800.00 \\ \hline$ & 0.50 & $ & 250.00 \\ \hline$ & 5.00 & $ & 50.00 \\ \hline$ & 20.00 & $ & 500.00 \\ \hline$ & 8.00 & $ & 800.00 \\ \hline & & $ & 2,400.00 \\ \hline \end{tabular} 140 Sundancer Boats, Inc. manufactures paddle boats in various colors for 5-Star Resorts. Management is preparing the budget for next year and has asked for the accountants help. Sales in the previous year were 500 units. They are bringing on a new customer and management is expecting a 35% increase in 2022. They will increase the selling price to $3,500 this year to account for anticipated rising costs. At the end of last year, there were no boats left in inventory to sell in 2021. Management would like to start 2022 with inventory on hand. They would like to budget to end 2022 with 25 completed and finished units. At the end of last year, there were no boats left in inventory to sell in 2021. Management would like to start 2022 with inventory on hand. They would like to budget to end 2022 with 25 completed and finished units. Management expects to end 2021 with some direct materials. They want to make sure that at the end of 2022 , they have enough direct materials on hand to start production right away in 2023. Management expects to end 2021 with some direct materials. They want to make sure that at the end of 2022 , they have enough direct materials on hand to start production right away in 2023. Sundancer, Inc. Direct Materials Budget For the Year Ended December 31, 2022 Managementexpects that it will take 25 hours of direct labor to manufacture each boat. Direct labor is billed at $20 hiour. Overhead for the company only exists of machine usage. It will take 100 machine hours per boat and the cost is 58/hour. 96 Management also anticipates the following fixed costs, some anticipated changes from last year: 97 98 Building and Equipment Depreciation 99 Company Insurance 100 Company Advertising 101 Administrative Salaries and Benefits $60,000$17,000$123,000$330,000 102 103 104 105 106 107 100 Fixed expenses 109 Building and Equipment Depreciation 110 Company Insurance 111 Company Advertising 112 Administrative salaries and benefits 113 Total selling and administrative expenses Sundancer, Inc. Selling and Administrative Expense Budget For the Year Ended December 31, 2022 114 \begin{tabular}{|lr|} \hline 5 & 60,000 \\ \hline 5 & 17,000 \\ \hline 5 & 123,000 \\ \hline 5 & 330,000 \\ \hline 5 & 530,000 \\ \hline \end{tabular} Management had to borrow some money from the bank to start the business five years ago. As a result, they still have some interest expense. It is $10,000 per year. Management anticipates a 21% tax rate for 2022 . 126 income from operations 127 Interest expense 128 Income before income taxes 129 Income tax expense 130 Net Income \begin{tabular}{|rr|} \hline 5 & 212,500 \\ \hline & 10,000 \\ \hline$ & 202,500 \\ \hline & 42,525 \\ \hline$ & 159,975 \\ \hline \end{tabular} 132 'Supplemental Schedule - COGS Cost Budget per Unit 133 Cost Element 134 Plastic Parts Direct materials: 135 Metal Parts Direct materials: 136 Paint and Stickers Direct materials: 137 Direct labor 138 Manufacturing overhead - machine hours 139 Total COGS Budget per Unit Sundsincer Boats, Inc. manufactures paddle boats in various colors for 5 -Star Resorts. Management now wants the accountants to complete a data analysis to compare the budget to standard costs for 2021. We know that based o. the budget that was set, if everything goes exactly like we budgeted; the company will earn net income of just under $160,000. But, how likely that to happen? Let's diseuss changes from budget and standard that oecurred during 2022. Overall, the company was able to increase several efficiencies. However, the company also experienced some increased costs. Use this information to complete the CH24 standard Costs tab; the green section. Plastic parts direct materials: The company was able to reduce waste by 20 pounds! However, purchase price, net of discounts increase by $0.50/pound. This caused an increase of $0.25 tor both freight as well as receiving and handling. Metal parts direct materials: The company was also able to reduce waste in metal by 30 poundis! That was also beneficial because the price of metal, net of discounts increased \$1.10ipound. Freight and receiving/handling also increased by $0.20/pound. That Was also benericta because the price ormend, net or alscounts increased \$1.10/pouna. Freight and receiving/handling also increased by $0.20/pound. Paint and stickers direct materials: The company was aiso able to reduce waste in paint by 3 pounds. There were no changes in price for paint and stickers. Direct labor: Employees were tasked with increasing equipment assembly and decreasing labor hours. They were successful in 2022 and brought hours down by 5/ hours/unit! The company provided a $6/hour raisel This also lead to an increase of $2/ hour in payroll taxes. Manufacturing overhead: As a result of the decrease in direct labor hours, manufacturing overhead came down. Instead of Overhead being allocated at 4 times Direct Labor Hours; it is now only 2 times Direct Labor Hours. However, there was a slight increase of $2 hour for each of the plant utilities and clean up. ln2022 Sundancer Eoats, lne manulaetures baddle boats in variows colors for 5 -5tar Flesorts. Mandgetent nov wahts the accoentants to complete a data inalgsis to compate the bedget to standard costs lor 2022. Ve knov that based ob the budget that was set, if exergthing goes erasily the re budgeted, the eompang will earn set income of just under Stie,000. Bul, Mov likilg is that to happen? Question 1 Hov vele 202z Pioduction Cost detived? Qwestion 2: What if the ACTuAt eosts ohange Quesaion 3i. What if the ACItiAL usage per unit 20\%2 EdubiEY + Curtent andard Fredetermined Unit cesis Masiae Pats Dureet Materials: Metal Pats Direet Matelials. Paint and Stbeters Dareet Materials: Cheer Lafor Howis: Manur acturing Overbead Maekine Hours 2021 3 KANDARD COSY DUDGET - Curtent StandaId Predettrmined Wnit Costs 93 Receivingthanding 3) Pequited imatetials 38. Aliovine for maste 40 41 4) Paint and Stackers Direot Materials 42. Purchase price, net of discounts 45 Freight 44 Peceivingthandling. 45 Required materials 45. Allovance for y aste 45. Dueet Labor Price and Euantits Gtandard 4) Direct Labor Hourst 50 Hourls vage rate 31 Cost of living dsjustiments 1. pastoll taxes 83 Dther benefits s4 Actual produetion Se: [lieals 56. Setup and cleaning 30 60 Manulacturing Ouerhead 6) Manufacturing Insur ance 62 Mand acruring Plant Utifities 63 Manulacturing Cleanup 64 4iunes Direet labor Hours 252623 65 \begin{tabular}{|r|r|r|r|} \hline 100 & hours & & 10.00 \\ \hline & & 2.00 \\ & & & 2.00 \\ 4 & & 5 & 1.00 \\ \hline \end{tabular} fe Question 2. Vhat if the ACTUAL costs change during the gear? Question Question 3: What if the ACTUAL usage per unit to malte the boats changes? Diretef 1 abon P? Dirtet t abor 11 lourly yape rat cost of loving agrell tames iner benefils rual dioducti Direet Materials Price and Ruantity Standard Metal Parts Direct Materials: Purchase price. net of discounts Freight Receivingthandling Pequired materials Allovance for vaste K. L M M 470 pounds \begin{tabular}{|cc|} \hline & 2.00 \\ \hline & 1.50 \\ $ & 0.25 \\ $ & 0.25 \\ \hline & \end{tabular} Direct Materials Price and Quantity Standard Paint and Stickers Direct Materials: Purchase price, net of discounts Freight Receivingthandling Required inaterials Allovance for vaste \begin{tabular}{|l|ll|} \hline pounds & 5 & 5.00 \\ \hline & 5 & 4.25 \\ & 5 & 0.50 \\ & 5 & 0.25 \\ \hline \end{tabular} Direot Labor Price and Ruantits Standard Direet Labor Hours: Hourlg vage rate Cost of living adjustments Payroll tares Other benefits Actual production Breaks Setup and cleaning Manufacturing Overhead Quantity Standard Manufacturing Overhead Manufactuting insurance Manufacturing Plant Utilities. Manufacturing Cleanup 2 times Direet abor Hours \begin{tabular}{|r|r|r|r|r|} \hline 40 & hours & 4 & 1200 \\ \hline & & 7 & 2,00 \\ \hline & 700 \\ 7 & & 200 \\ \hline \end{tabular} CH24 Standard Costs Actual 2022 income Statement 2023 Master Budget Question 4: Hov can favorable and unfavorable variances be communicated? NOTE about this section: It will AUTOMATICALLY UPDATE ONCE YOU PUT IN THE INFOFMATION IN THE 2022 ACTUAL GREEN SECTION ard Costs Sundancer Boats, ine. manufactures paddle boats in various colors for 5.Star Resorts. Prepare the 2022 Income Statement based on the following information: 1. Luckily, the company got word of the huge increase in plastic and metal prices. They adjusted their actual unit selling price for the year to $4,750. However, they didn't sell the budgeted 675 , they only sold 625 boats. 2. Based off the ACTUAL COSTS determined in 2022, compute the Supplemental Schedule for COGS. "Hint" Use Actual Standard Costs from Tab CH24 Standard Costs 4. Management had to borrow some money from the bank to start the business five years ago. As a result, fhey still have some interest expense. It is $10,000 per year. Management anticipates a 21% tax rate for the next saveral yeors 22 \( 2 3 \longdiv { 2 4 } \) Sundancer, Inc. Income Statement For the Year Ended December 31, 2022 Sales 26 "Cost of goods sold 29 Gross profit 30 Selling and administrative expenses 31 Income from operations 32. Interest expense 33. Income before income taxes 34 Incometax expense 35. Net inconse 37 "Supplomental Schedule - COGS Cost per Unit 23 Cost Liement 29 Plastic Parts Direct materlals: 40. Metal Parts Direct materials: 41 Paint and Stickers Direct materials: 42 Direct labor 4) Manulacturing overhead-machine hours Total COGS per Unit Quantity pounds pounds pounds hour hour \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Unit Cast Total \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline Unit Cast & Total \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} Sundancer Boats, Inc. manufactures paddle boats in various colors for 5.Star Resorts. Management is preparing the budget for 2023 and has asked for the accountants help. Last year was a tough year with price increases and a decrease in unit sales. Prepare the 2023 budget. You should use: 1. Information provided for you within each Budget section betow. 2. The 2022 Actual Cost information from the "CH24 Standard Costs" tab as the 2023 Standard Cost Budget. Sales in 2022 were 625 units. The company worked hard to bring on some new customers in 2022. Overall, they are expecting a 20% increase in units ovorall from 2022. Management will keep the selling ptice of the boats at 54,750 because they fear pricing thernselves out of the market. They are hoping this will be an appropriate price point to generate net income. Sundancer, Inc. Sales Budget For the Year Ended December 31, 2023 Expocted sales units Unit selling price Total sales At the end of 2021, there were 75 boats left in inventory to sell in 2022. They would like to budget to end 2022 with 10 completed and finished units. Management ended 2022 with some direct materials on hand. They would also like to end 2023 with some direci mator iali on hand as well. Sundancer, Inc. Direct Materials Budget For the Year Ended December 31, 2023 41 Required production units 42 Plastic Parts Direct materials pounds per unit produced: 43. Total pounds needed for production 44 Add: Desired ending direct materials in pounds (ending balance 2023) 45 Total materials required 46 Less: Beginning direct materials in pounds (ending balance 2022) 47 Direct materials purchases 45 Cost per pound 49. Total cost of Plastic Parts direct materials purchases 50 51. Required production units 52 Metal Parts Direct materials pounds per unit produced: 53 Total pounds needed for production 5. Add; Desired ending direct materials in pounds (ending balance 2023) 55 Total materials required 56 Less: Beginning direct materials in pounds (ending balance 2022) 57. Direct materials purchases 58. Cost per pound 59 Total cost of Metal Parts direct materials purchases 60. 61 Reguired production units 62. Paint and Stickers Direct materials pounds per unit produced: 61. Total pounds needed for production 64. Add: Desired ending direct materials in pounds (ending balance 2023) 65 Total materials required \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} .. CH24 Standard Costs Change Into CH24 Standard Costs Actual 2022 Income Statement 2023 Master Budget Use the 2022 Actual Cont Information for: 1. Direct Labor hours per Boat and 2. Direct Labor cost per fiour Use the 2022 Actual Cosi Information for: 1. Direct Labor hours per Boat and 2. Direct Labor cost per hour Management had to borrow some money from the bank to start the business five years ago. They linally paid off the 2022. Therefore, there is no interest expense. Management anticipates a 21% tax rate for for the next soveral years. Management had to borrow some money from the bank to start the business five years ago. They finaily paid off the loan in 2022. Therefore, there is no interest expense. Management anticipates a 21% tax rate for for the next several years. Budget Reflection - Write a short reflection about the changes from: 2022 Actual and how those compare to 2023 Budgeted Results. If you run out of room, add rows. Write a short statement about: 1. Using unit change and change in selling price, explain the overall change in sales between the 2023 Master Budget Sales and 2022 Actual Sales. Budget Reflection - Write a short reflection about the changes from: 2022 Actual and how those compare to 2023 Budgeted Results. If you run out of room, add rows. Write a short statement about: 1. Using unit change and change in selling price, explain the overall change in sales between the 2023 Master Budget Sales and 2022 Actual Sales. Arswer here 2. Why are we using 2022 actual cost and actual usage in creating the 2023 Master Budget? Would there be any re, isons we would consider changing the 2021 actual cost or actual usage amounts used in the 2022 Master Budget? Answer nere 2. Why are we using 2022 actual cost and actual usage in creating the 2023 Master Budget? Would there be any reasons we would consider changing the 2021 actual cost or actual usage amounts used in the 2022 Master Budget? Answer bere 3. Was the business profitable in 2022? How does that compare to the business bottom line (net income) in the 2023 Master Budget? In your answer, think about All of the costs that impact net income, such as changes in revenue, COGS expense and selling and administrative expense. Arowe here