Your friend has come to you and asked you to help him create 4 Budgets and calculate some Variances. Use the information below to answer the questions below: Projected Sales Dollars for each product are as follows: Sales Price Per Chair Sales Price Per Table $13.25 $43.00 Projected Sales Amounts for each product are as follows: Projected Chairs Sales This Period Projected Tables Sales This Period 105,000 84,000 Estimated and Desired Inventory amounts for each level of inventory for each product as as follows: Estimated Beginning Square Feet Wood Inventory Estimated Beginning Square Feet Fabric Inventory Estimated Beginning Square Feet Foam Inventory Estimated Beginning Finished Goods Chairs Inventory Estimated Beginning Finished Goods Tables Inventory Desired Ending Square Feet Wood Inventory Desired Ending Square Feet Fabric Inventory Desired Ending Square Feet Foam Inventory Desired Ending Finished Goods Chairs Inventory Desired Ending Finished Goods Tables Inventory 12,000 16,000 13,000 7,000 8,000 14,000 19,000 17,000 9,000 5,000 Standard Dollar/Rate and Quantity/Time amounts for each material and labor are as follows: Standard Square Feet of Wood Standard Square Feet of Fabric Standard Square Feet of Foam Per Chair 23 5 3 Per Table 123 3 1 Wood $0.27 Fabric $0.48 Foam $0.17 Standard Purchase Price Per Square Foot Standard Minutes To Produce Each Product Standard Worker Hourly Wage Chair 20 $13.00 Table 35 $19.00 Actual Dollar and Quantity amounts for Wood and Actual Rate and Time amounts to produce tables are as follows: Actual Wood Square Feet Needed To Produce Chairs Actual Price Per Square Foot Of Wood 2,465,000 $0.28 Actual Hours Needed To Produce Tables Actual Hourly Wages Paid To Produce Tables 50,000 $19.75 Using what you read in the Information section, please create the following Budgets and calculate the following Variances: 1) Sales Budget 2) Production Budget 3) Direct Materials Purchases Budget 4) Direct Labor Cost Budget 5) Explain why Budgeting is important and why the Operating Budgets need to be created in a particular order: 6) Direct Labor Rate & Time Variances 7) Direct Materials Price & Quantity Variances 8) Explain how to read your Variances and what your calcuations tell you about Actual versus Planned Production: Your friend has come to you and asked you to help him create 4 Budgets and calculate some Variances. Use the information below to answer the questions below: Projected Sales Dollars for each product are as follows: Sales Price Per Chair Sales Price Per Table $13.25 $43.00 Projected Sales Amounts for each product are as follows: Projected Chairs Sales This Period Projected Tables Sales This Period 105,000 84,000 Estimated and Desired Inventory amounts for each level of inventory for each product as as follows: Estimated Beginning Square Feet Wood Inventory Estimated Beginning Square Feet Fabric Inventory Estimated Beginning Square Feet Foam Inventory Estimated Beginning Finished Goods Chairs Inventory Estimated Beginning Finished Goods Tables Inventory Desired Ending Square Feet Wood Inventory Desired Ending Square Feet Fabric Inventory Desired Ending Square Feet Foam Inventory Desired Ending Finished Goods Chairs Inventory Desired Ending Finished Goods Tables Inventory 12,000 16,000 13,000 7,000 8,000 14,000 19,000 17,000 9,000 5,000 Standard Dollar/Rate and Quantity/Time amounts for each material and labor are as follows: Standard Square Feet of Wood Standard Square Feet of Fabric Standard Square Feet of Foam Per Chair 23 5 3 Per Table 123 3 1 Wood $0.27 Fabric $0.48 Foam $0.17 Standard Purchase Price Per Square Foot Standard Minutes To Produce Each Product Standard Worker Hourly Wage Chair 20 $13.00 Table 35 $19.00 Actual Dollar and Quantity amounts for Wood and Actual Rate and Time amounts to produce tables are as follows: Actual Wood Square Feet Needed To Produce Chairs Actual Price Per Square Foot Of Wood 2,465,000 $0.28 Actual Hours Needed To Produce Tables Actual Hourly Wages Paid To Produce Tables 50,000 $19.75 Using what you read in the Information section, please create the following Budgets and calculate the following Variances: 1) Sales Budget 2) Production Budget 3) Direct Materials Purchases Budget 4) Direct Labor Cost Budget 5) Explain why Budgeting is important and why the Operating Budgets need to be created in a particular order: 6) Direct Labor Rate & Time Variances 7) Direct Materials Price & Quantity Variances 8) Explain how to read your Variances and what your calcuations tell you about Actual versus Planned Production