ZAYED UNIVERSITY COLLEGE OF BUSINESS MANAGERIAL ACCOUNTING ACC-203 INDIVIDUAL PROJECT FALL 2020

INSTRUCTIONS

3. Your answer MUST be completed on an Excel sheet using formulas, NOT a calculator

4. Your answer (Excel File) must be uploaded on Blackboard

1

Dubai Technologies Company approached you as a Business Consultant to assist them in preparing their 2021 Master Budget. You have been provided with the following data:

• The company is manufacturing and selling TWO models of a branded Smart Phone: o XYZ Plus
• o XYZs
• Expected number of units to be sold in 2021
• o XYZ Plus: 150,000 units o XYZs: 100,000 units
• Expected selling Price:
• o XYZ Plus: AED1500 per unit
• o XYZs: AED 1000 per unit
• Each model requires 5 components (raw materials):
• o Camera (XYZ Plus has 4 Cameras, while XYZs has only 2 Cameras). o Keypad
• o Screen
• o Frame
• o Motherboard.
• Purchasing prices for the five components are as follows:
• o Camera: AED 90
• o Keypads: AED 60
• o Screen: AED 120
• o Frame: AED 18
• o Motherboard: AED 72
• The management policy is no ending inventory of any component item or finished goods is required.
• Each Mobile model requires 5.5 hours of labor at a cost of AED 40.00 per hour to be manufactured.
• Manufacturing Overhead is allocated at a rate of AED 60 per Direct Labor Hour. 2
• Selling and Admin variable expense rates per unit of sales are sales commissions AED 5 and freight-out AED 2
• Selling and Admin fixed expenses include Depreciation AED 16,000, Salaries AED 20,000 and maintenance AED 8000 for each model
• Interest is AED 10,000 and Taxes are AED 50,000 Required:

Prepare the following for 2021:

o Sales Budget

o Components (Direct Material Purchases) Budget o Direct Labor Budget

o An overhead Budget

o Selling and Administrative Budget

Prepare a budgeted income statement