Thus is what I have done so far... I dont know what to do next please help. Thank you.
It was while watching college football games on January 1st that Elmer Fudd and Mickey Mouse were discussing Elmer's current situation. In December, the previous month, Acme Brick had closed their Conroe brick making facility. As Plant Manager, Elmer Fudd, had been responsible for seeing the equipment dismantled, and shipped to a site in Mississippi. Labor costs and material costs were cheaper in Mississippi, so Acme Brick was relocating their multi-million ton facility Elmer had worked for Acme Brick for over 25 years, and knew everything about how the process worked. His daughter was a student at Lone Star College, and planned to transfer to Sam Houston State University, so moving to Mississippi was not an option for him. He was sad to lose his job, and did not know what he was going to do. Mickey says, "look Elmer, you have no job, and I am stuck working for an employer that I do not like. Why not combine your brick making skills with my business skills, and, we go into business for ourselves". And, with that "Elmer Fudd's Brick Making Company, LLC" was born. Elmer and Mickey began making a budget so that they could forecast their revenue and expenses. Estimated Overhead (Monthly) Rent on Building and Land Portable Brick-Making Machine Insurance Property Taxes Fork Lift Rental Office Equipment -Deprciation Front Loader Rental Estimated Utilities Estimated Supplies 5,000 90% mfg and 10% admin 2,500 3,000 split like building rent 1,000 split like building rent 1,000 190 1,500 1,800 split like building rent 3,000 split like building rent Estimated Overhead per Month 18,990 Estimated Labor Costs (Monthly) Elmer Fudd Mickey Mouse Sales Staff Factory Labor 5,000 2,500 2,400 10,320 split 70% mfg, 30% admin 100% administration 100% administration 100% Mfg Est. Monthly Salary/Wages 20,220 Estimated Payroll Taxes (10%) 2,022 Page 2 Direct Materials Costs 10,000 bricks 20,000 bricks 30,000 bricks 40,000 bricks 0.30 per brick 0.25 per brick 0.20 per brick 0.18 per brick Questions: 1. What is the Pre-determind Overhead Rate at 10,000 bricks 20,000 bricks 30.000 bricks 40,000 bricks What is the Manufacturing Cost per brick at: 10,000 bricks 20,000 bricks 30.000 bricks 40,000 bricks Assuming, that labor is fixed for all levels of production. 3. Prepare an Income statement based on the following production volumes: (Assuming the following pricing structure.) 10,000 bricks 3.20 for each brick sold 20,000 bricks 2.20 for each brick sold 30.000 bricks 1.80 for each brick sold 40,000 bricks 1.50 for each brick sold 4. Based on the information provided, at what level of the sales should the company try to achieve ?? Explain Why Home Insert Headings Draw Formulas Sheet Tabs Data Review View Sheet Right-to-Left Formula Bar Gridlines Q Q Freeze Panes Admin 500.00 A B C Elmer Fudd's Brick Making Company, LLC Estimated Overhead ( Monthly) Rent on building and land $ 5,000.00 $ 4.500.00 $ Portable Brick Making Machine $ 2,500.00 $ 2,500.00 Insurance $ 3,000.00 $ 2,700.00 $ Property Taxes 5 1,000.00 $ 900.00 $ Fork Lift Rentals 1,000.00 $ 1,000.00 Office Equipment Depreciations 190.00 Front Loader Rentals 1.500.00 1,500.00 Estimated Utilities 1.800.00 $ 1,620.00 $ Estimated Supplies 3.000.00 2.200.00 $ Total 18,990.00 $ 17420.00 $ 300.00 100.00 190.00 180.00 300.00 1.520.00 MEG $ 3.500.00 $ Estimates Labor Costs (Monthly Elmer Fudds Mickey Mouse $ Sales Staff $ Factory Labor $ Total $ Total 5,000.00 2.500.00 2.400.00 10,320.00 20,220.00 Admin 1,500.00 2,500.00 2.400.00 $ $ 10.320.00 13,820.00 $ 6,400.00 10,000 40,000 Saless 32,000.00 $ 20,000 5,000.00 30,000 6,000.00 $ $ 60.000.00 D/M $ 3,000.00 $ 5,000.00 $ 6,000.00 $ 7,200.00 D/L O/H Applied Admin 500.00 Elmer Fudd's Brick Making Company, LLC Estimated Overhead (Monthly) Total MFG Rent on building and land $ 5,000.00 $ 4,500.00 $ Portable Brick-Making Machine $ 2,500.00 $ 2,500.00 Insurance $ 3,000.00 $ 2,700.00 $ Property Taxes $ 1,000.00 $ 900.00 $ Fork Lift Rentals 1,000.00 $ 1,000.00 Office Equipment Depreciation $ 190.00 Front Loader Rental $ 1,500.00 $ 1,500.00 Estimated Utilities $ 1,800.00 $ 1,620.00 $ Estimated Supplies S 3,000.00 $ 2,700.00 $ Total $ 18,990.00 $ 17,420.00 $ 300.00 100.00 190.00 180.00 300.00 1,570.00 Total MFG Admin $ 3,500.00 $ Estimates Labor Costs (Monthly) Elmer Fudd $ Mickey Mouse $ Sales Staff $ Factory Labor $ Total 5,000.00 2,500.00 2,400.00 10,320.00 20,220.00 1,500.00 2,500.00 2,400.00 $ $ 10,320.00 13,820.00 $ 6,400.00 Sales $ 10,000 32,000.00 $ 20,000 5,000.00 $ 30,000 6,000.00 $ 40,000 60,000.00 3,000.00 $ 5,000.00 $ 6,000.00 $ 7,200.00 D/ MS D/L 0/H Applied
