Required: a) Using the information provided prepare a flexible budget statement for 27,000 units for the year ended 31st March 2022 and compare it with the actual results, showing all variances.
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- Use the following information for Exercises 9-50 and 9-51: Assume that Stillwater Designs produces two automotive subwoofers: S12L7 and S12L5. The S12L7 sells for 475, and the S12L5 sells for 300. Projected sales (number of speakers) for the coming 5 quarters are as follows: The vice president of sales believes that the projected sales are realistic and can be achieved by the company. Exercise 9-50 Sales Budget Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. CONCEPTUAL CONNECTION How will Stillwater Designs use this sales budget?The following information was extracted from the budget for the month ended 31 August 2022: Sales 10 000 units at R200 per unit Direct materials cost per unit R50 Direct labour cost per unit R34 Variable manufacturing overhead costs per unit R24 Variable selling costs per unit R12 Fixed manufacturing overhead cost R230 000 Fixed selling and administrative costs R170 000 3.1 The total Marginal Income and Net Profit/Loss if all 10 000 units are sold. 3.2 Break even value by using the marginal income ratio 3.3 Margin of safety (in units) 3.4 The sales volume required to earn a net profit of R560 000 3.5 The total Marginal Income and Net Profit/Loss if all the manufacturing costs increase by 10%.Your company manufactures tabies and chairs In your role as a manager you are responsible for the budget preparalion for the quarter ending 30 March 2018 Tho quartor consists of 13 weeks The other managers are inexpenenced, and you decided to do the budget on your own You have accumuiated the following data for the quarter Finished product Tables Chairs Forecasted sales (unts) 5,525 11,050 Seling Price per unit R242 50 R152 00 Inventory opening balance (unta) 450 700 Closing Inventory Tables closing inventory must equal 1 week's sales units Chairs closing inventory must equal 2 week's sales units Raw Materials: Wood Metal Tables (meters per unit) 8m 1m Chairs (meters per unit) 3m O 50m Cost per meter R135 00 R150 00 Opening nventory (meters) 2,000m 750m Closing nventory Wood closing stock must equal 1 week's producton requirement Metal closing stock must equal 1 week's production requirement Required Prepare the following budgets 1 Production budget (Units) 2 Direct material usage…
- a) Why do successful companies tend to use the bottom-up approach to establish a master budget? b) Green Tea’s data show the following information for the financial year, beginning July 2020: July Aug. Sept. Oct. Nov. Estimated sales (units) 25,000 25,000 27,000 27,500 28,000 Sales price per unit $31 $31 $31 $31 $31 Direct labour per unit $1.75 $1.75 $1.50 $1.50 $1.50 Labour rate per hour $21 $21 $24 $24 $24 New machinery will be added in September. This machine will reduce the labour required per unit and increase the labour rate for those employees qualified to operate the machinery. Finished goods inventory is required to be 20% of the next month’s requirements. Direct material requires 2.5 kg per unit at a cost of $5 per kg. The ending inventory required for direct materials is 20% of the next month’s needs. In July, the beginning inventory is 3,750 units of finished goods and 13,125 kg of…The Management Accountant of Kafululu Plc has prepared the following budget information for theyear ending 31st December 2022 for product A. Annual Fixed Costs K270,000.00 Variable costs per unit K90.00 Contribution to sales ratio(C/S) 75% Annual budget units 1,500 Required:a) Calculate the contribution per unit for Product A. b) Calculate the Unit Selling Price for Product A. c) Calculate the Break Even Point for Product A. d) Calculate the margin of safety in Units and in percentage terms. e) If the Selling Price per Unit is reduced by 10%, variable cost per Unit is increased to K100.00and Fixed costs remain unchanged, calculate:i. The new Breakeven Point. ii. The total units that should be sold in order to make a profit of K450,000 in 2020.(Accounting Please solve it ASAP with all requirements Q.7. Toews Ltd has prepared the following flexible budget for the coming year. The Budgeted level of activity is 7,500 units. £ Sales 250,000 Direct material 75,000 Direct labour 60,000 Variable overheads 30,000 Fixed overheads 45,000 Profit 22,500 lf the budget is flexed to a level of activity of 10,000 units, what would the total budgeted cost be? a) £280,000 b) £265,000 c) £123,750 d) £168,750
- Magika Enterprises has prepared the following budget for the month of November: Selling Price Variable Cost per unit per unit Unit Sales Product A ₱ 10 ₱ 4 15,000 Product B ₱ 15 ₱ 8 20,000 Product C ₱ 18 ₱ 8 5,000 If the Fixed Costs amount to ₱150,000, the break-even point in SALES amount to ₱________________. For uniformity of answers, for interim calculations, use 5 decimal places and round-off the final answer to a whole number.Samcor Limited manufactures tables. The following information was extracted from the budget June 2022: 1. 2. 3. 4. 5. Total production and sales Selling price per table Variable manufacturing costs per table: Direct material Direct labour Overheads Fixed manufacturing overheads Other costs: Fixed marketing and administrative costs Sales commission 2 400 units year R1 200 R288 R192 R96 R216 960 R144 000 5%NiNa plc manufactures 1 product; XYZ. It uses materials A and B inproduction of XYZ. The Financial Director of Rain plc has asked for yourassistance in producing the cash budget for the month of September 2021.She has provided you with the following information extracted from thefunctional budgets:July August September OctoberSales (£) 9,250,000 10,360,000 12,950,000 14,245,000Production (unit) 50,000 56,000 70,000 77,000Material A purchase(£) 1,500,000 1,680,000 2,100,000 2,310,000Material B purchase(£) 500,000 560,000 700,000 770,000Direct labour cost (£) 2,400,000 2,688,000 3,360,000 3,696,000The following additional information has also been provided to you:• Sales are 20% cash, 80% credit. Credit sales are paid one month afterthe month of sale. NiNa plc allows a 1% cash discount on all of its cashsales and the firm does not anticipate any bad debt in the foreseeablefuture.• Payment to material A supplier is made in the month following purchaseand payment to material B supplier is…
- Q2: The following monthly budgeted data are available for a wholesale company: Product Product Product A B с $800,000 $400,000 $200,000 640,000 240,000 140,000 $160,000 $160,000 $60,000 Sales Variable expenses Contribution margin The budgeted total fixed expense is $ 150,000. Required: a) Calculate the break-even sales for the month? b) Calculate the margin of safety in sales dollars? c) What is the sales Mix?AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's January 2021 flexible budget income statement shows output levels of 6,500, 8,000, and 10,000 units. The static budget was based on expected sales of 8,000 units. ALLTALK TECHNOLOGIES Income Statement Performance Report Month Ended January 31, 2021 By Units (Capacitors) Per Unit 6.500 8.000 Sales revenue $ 156.000 192.000 240.000 $ 65.000 80.000 100.000 Variable expenses Contribution margin 91.000 112.000 140.000 Fixed expenses 53.000 $ 53.000 53.000 Operating income $38.000 $59.000 $87.000 The company sold 10,000 units during January, and its actual operating income was as follows: ALLTALK TECHNOLOGIES Income Statement Month Ended January 31, 2021 Sales revenue $ 246.000 Variable expenses 104.500 Contribution margin $ 141.500 Fixed expenses 54.000 Operating income $ 87.500 Requirements 1. Prepare an income statement performance report for January. 2. What was…Cost Accounting The following budget is prepared by the Production manager for the last quarter of 2021:Units Total CostOctober 7500 530000November 6000 440000December 5000 380000 1. What is the variable cost per unit? ______2. How much is the fixed cost? ______3. What is the estimated budget for 6500 units?______