Clipboard Font Styles Ideas X fx Part 2 D E F G H I J K L M L 1 Part 2 2 You should use this worksheet as your data field and only use cell references and formulas in the budgets. I have set up a template budget worksheet for you to develop the budgets 3 Your grade will be based on accuracy of your solution and correct usage of excel. The budget worksheet has formatted budgets for you to complete. 4 The beauty behind excel is that managers can perform what-if analysis just by changing the data, so you do not need to retype the budgets if you 5 have used cell references and fomulas throughout 7 The budget director for Bird House Unlimited, Inc., has gathered the following data for use in developing the budgeted income statement for January 2020. Estimated sales for January Bird House 34,000 units at $42 per unit Bird Feeder 25,000 units at $70 per unit Direct materials Estimated inventories at January 1(beginning) Wood 2600 feet Plastic 3200 pounds Estimated inventories at January 31stlending) Wood 3500 feet Plastic 2800 pounds Direct materials used in production: In the manufacture of a Bird House: Wood Plastic 0.80 feet per unit of product 0.50 pounds per unit of product In the manufacture of a Bird Feeder: Wood Plastic 1.20 feet per unit of product 0.75 pounds per unit of product Estimated cost of direct materials Wood Plastic $6.50 per feet $0.90 per pound Work in process-given in total of the 2 products Estimated inventories at January 1(beginning) Estimated inventories at January 31stiending) $27,000 $32,400 Finished Goods Estimated inventories at January 1(beginning) Bird House Bird Feeder 4900 units 2.500 units at at $25 per unit $35 per unit Estimated inventories at January 31st(ending) Bird House Bird Feeder 5300 units 2,100 units at $24 per unit $36 per unit Direct Labor Requirements: Bird House Fabrication Department Assembly Department 0.25 hour 0.3 hour $14 per hour $10 per hour Bird Feeder Fabrication Department Assembly Department 0.45 hour 0.35 hour at $14 per hour $10 per hour Estimated Manufacturing Overhead Costs for January Indirect Factory Wages Depreciation of Plant and Equipment Power and Light Insurance and property tax $550 000 165,000 42,000 15,400 Estimated operating expenses for January Sales salaries expense Advertising expense Office salaries expense Depreciation expense-office equipment Telephone expense-selling Telephone expense-administrative Travel expense-selling Office supplies expense Miscellaneous Administrative expense $600,000 148,600 214,800 4,900 5,200 1,700 39,200 3,500 5.000 Estimated other income and expense for January Interest Revenue Interest Expense $14.000 11,000 Estimated tax rate 3246 H 145 144 1458. 146 147 148 149 Bird House Unlimited, Inc. Budgeted Income Statement For the Month Ending January 31, 2020 150 151 152 153 154 155 156 157 Sales Revenue Less: Cost of goods sold Gross Margin Operating expenses: Selling expenses Administrative expenses Total operating expenses Income from operations Other income: Interest revenue Other expenses: Interest expense Income before income tax Income tax expense Net income 158 159 160 161 162 163 164 165 166 167 168 9. What if the company decides to start a new advertising campaign 169 that will increase the total advertising expense to a total of $180,000 and the estimated sales 170 of bird house would increase to 36,000 units and Bird Feeders would increase to 29,000 units. 171 Make these changes on the Part 2 worksheet and if you have linked your data correctly to these budgets the 172 budgets should update immediately. What budgets changed? What would be the new budgeted income? 173 Would you recommend this advertising campaign? Why? 174 Please make sure you change your data back to the original information before you submit. 175 176 177