Activity No. 12 Master Budget ComputationFurniture Manufacturing Company - School Desk DivisionScholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that aresold to public school systems throughout the Philippines. The controller of the company's DeskDivision is currently preparing a budget for the thrid quarter of the year. The following forecasthas been made by the division's sales manager.Sales Budget - Sales Price = P600/setAugustP60,000JulySeptemberOctoberP54,000P75,000P90,000Based on the information below, prepare the company's third quarter budget of the following:A. SalesB. Production.• Desired ending inventory (finished sets) is equal to 20% of next month's budgeted salesC. Raw Material Purchases• 10 board feet per set• Desired ending inventory (board feet) = 10% of next month's use of board feet• Cost of raw material purchases = P6.00/board footD. Direct Labor BudgetDirect labor hours per set = 1.5Direct labor cost per hour - P210.00

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Description: Activity No. 12 Master Budget ComputationFurniture Manufacturing Company - School Desk DivisionScholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that aresold to public school systems throughout the Philippine

Budgeting is an Estimation of Expected Expenses or a particular production to be need in Future.…

Business

Accounting

Activity No. 12 Master Budget Computation Furniture Manufacturing Company - School Desk Division Scholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Philippines. The controller of the company's Desk Division is currently preparing a budget for the thrid quarter of the year. The following forecast has been made by the division's sales manager. Sales Budget - Sales Price = P600/set July August September October P54,000 P60,000 P75,000 P90,000 Based on the information below, prepare the company's third quarter budget of the following: A. Sales B. Production. • Desired ending inventory (finished sets) is equal to 20% of next month's budgeted sales C. Raw Material Purchases • 10 board feet per set • Desired ending inventory (board feet) = 10% of next month's use of board feet • Cost of raw material purchases = P6.00/board foot D. Direct Labor Budget • Direct labor hours per set = 1.5 • Direct labor cost per hour - P210.00

Activity No. 12 Master Budget Computation Furniture Manufacturing Company - School Desk Division Scholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that are sold to public school systems throughout the Philippines. The controller of the company's Desk Division is currently preparing a budget for the thrid quarter of the year. The following forecast has been made by the division's sales manager. Sales Budget - Sales Price = P600/set July August September October P54,000 P60,000 P75,000 P90,000 Based on the information below, prepare the company's third quarter budget of the following: A. Sales B. Production. • Desired ending inventory (finished sets) is equal to 20% of next month's budgeted sales C. Raw Material Purchases • 10 board feet per set • Desired ending inventory (board feet) = 10% of next month's use of board feet • Cost of raw material purchases = P6.00/board foot D. Direct Labor Budget • Direct labor hours per set = 1.5 • Direct labor cost per hour - P210.00

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.

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Question

Activity No. 12 Master Budget Computation
Furniture Manufacturing Company - School Desk Division
Scholastic Furniture Inc. Manufactures a variety of desks, chairs, tables, and shelf units that are
sold to public school systems throughout the Philippines. The controller of the company's Desk
Division is currently preparing a budget for the thrid quarter of the year. The following forecast
has been made by the division's sales manager.
Sales Budget - Sales Price = P600/set
August
P60,000
July
September
October
P54,000
P75,000
P90,000
Based on the information below, prepare the company's third quarter budget of the following:
A. Sales
B. Production.
• Desired ending inventory (finished sets) is equal to 20% of next month's budgeted sales
C. Raw Material Purchases
• 10 board feet per set
• Desired ending inventory (board feet) = 10% of next month's use of board feet
• Cost of raw material purchases = P6.00/board foot
D. Direct Labor Budget
Direct labor hours per set = 1.5
Direct labor cost per hour - P210.00

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