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Your job is to create the following: Overhead budget (for each quarter): Variable Overhead Rate ($/hr) Budgeted Variable Overhead Budgeted fixed overhead without depreciation Depreciation
Your job is to create the following:
Overhead budget (for each quarter):
Variable Overhead Rate ($/hr)
Budgeted Variable Overhead
Budgeted fixed overhead without depreciation
Depreciation
Total Overhead
Selling & Administrative Budget (for each quarter)
Planned sales in dollars
Variable S & A rate (per unit sold)
Variable S & A Expense
Fixed S & A Expense without depreciation
Depreciation
Total S & A Expense
Diesel Dynamo Company | ||||||
Budget Project | ||||||
Fall 2017 | ||||||
INPUT SECTION | ||||||
SALES | ||||||
4th | 1st | 2nd | 3rd | 4th | ||
Quarter | Quarter | Quarter | Quarter | Quarter | ||
2017 | 2018 | 2018 | 2018 | 2018 | ||
Budgeted Sales in units | 43,000 | 37,900 | 34,500 | 31,000 | 43,000 | |
Budgeted Selling Price | $530 | per production unit (Finished Good) | ||||
RECEIVABLES | ||||||
Receivables Collection Schedule | 91.50% | quarter of sale | ||||
5.50% | quarter following sale | |||||
3.00% | uncollectible | |||||
100.00% | ||||||
Policy | Entire projected uncollectible receivables are written off each quarter | |||||
INVENTORY COSTS | ||||||
Direct Labor | 4.5 | hours | ||||
$19.50 | per direct labor hour | |||||
Raw Materials | 3 | direct material units per finished good production unit | ||||
$85.00 | per raw material unit | |||||
Variable Overhead | $9.50 | per Direct Labor Hour | ||||
Fixed Overhead | ||||||
Depreciation | $304,000 | per quarter | ||||
Other Fixed Overhead | $950,000 | per quarter | ||||
Fixed Overhead Application Rate | CALCULATE FROM PRODUCTION BUDGET | |||||
INVENTORY ACCOUNTS | ||||||
4th | 1st | 2nd | 3rd | 4th | ||
Ending Finished Goods Inventory | Quarter | Quarter | Quarter | Quarter | Quarter | |
in units | 0 | 15,000 | 19,000 | 20,000 | 15,000 | |
Raw Materials Inventory | ||||||
Beginning Inventory 1/1/2018 | 28,436 | units |
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