Use this list of terms to complete the sentences that follow.

Long-range plans Master budget Operating budgets

Sales forecast Participative budgeting Financial budgets

1. establish goals for the company's sales and production personnel.
2. The is a set of interrelated budgets that constitutes a plan of action for a specified time period.
3. reduces the risk of having unrealistic budgets.
4. include the cash budget and the budgeted balance sheet.
5. The budget is formed within the framework of a
6. contain considerably less detail than budgets.

Rado Company classifies its selling and administrative expenses budget into variable and fixed components. It expects variable expenses to be $25,700in the first quarter, and expects $5,400increments in the remaining quarters of 2020. It expects fixed expenses to be $38,700in each quarter. Prepare the selling and administrative expenses budget by quarters for 2020.

RADO COMPANY

Selling and Administrative Expense Budget

For the Year Ending December 31, 2020

Quarter

1 2 3 4

Variable costs

Fixed Costs

Total

Good-Buy Electronics Inc. produces and sells two models of pocket calculators, Deluxe and Standard. The calculators sell for $8and $6, respectively. Because of the intense competition Good-Buy faces, management budgets sales annually. Its projections for the four quarters of 2020 are as follows:

Unit Sales

Product Quarter 1 Quarter 2 Quarter 3 Quarter 4

Deluxe 9,800 14,900 30,500 25,400

Standard 14,700 19,800 24,600 30,300

Prepare a sales budget for the four quarters ending December 31, 2020. For each quarter and for the 12 months, indicate the number of units, selling price, and total sales for each product and in total.

GOOD-BUY ELECTRONICS INC.

Sales Budget

For the year ending December 31, 2020

Quarter

1 2 3 4 Total

Deluxe

Sales in units:

Unit price:

Deluxe sales:

Standard

Sales in units:

Unit price :

Standard sales:

Total sales combined:

Choo-Foo Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020:

January February March April May

Estimated unit sales 9,000 13,000 9,000 10,000 9,000

Sales price per unit $55.00 $52.70 $52.70 $52.70 $52.70

Direct labour hours per unit 2.0 2.0 1.5 1.5 1.5

Wage per direct labour hour $8.00 $8.00 $8.00 $9.00 $9.00

Choo-Foo has a labour contract that calls for a wage increase to $9.00per hour on April 1. It has installed new labour-saving machinery, which will be fully operational by March 1.

Choo-Foo expects to begin the year with14,000frames on hand and has a policy of carrying an end-of-month inventory of 100% of the following month's sales, plus 50% of the next month's sales.

(a)Prepare a production budget and a direct labour budget for Choo-Foo by month and for the first quarter of the year. The direct labour budget should include direct labour hours and show the detail for each direct labour cost category .(Round DLH per unit to 1 decimal places, e.g. 1.2, labor rate per hour to 2 decimal places, e.g. 12.25 and all other answers to 0 decimal places, e.g. 125.)

CHOO-FOO COMPANY

Production Budget

For the quarter ending March 31, 2020

Jan Feb Mar Total

-------------------- -------- ------------ ------------ --------------------

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TOTAL -------------- ----------- ------------ -----------------------

CHOO-FOO COMPANY

Direct Labour Budget

For the quarter ending March 31, 2020

Jan Feb Mar

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TOTAL ---------------- ------------------------- --------------------------------