Gordon Helps and Associates Company makes two products. Information regarding one of those products is given below: Budgeted output /Sales for the year: 900 units Standard details for one unit Direct materials 40 square metres at $5.30 per square meter Direct wages Bonding department : 24 hours at $5.00 per hour Finishing depart: 15 hours at $4.80 per hour Variable overhead $1.50 per bonding labour hour $1 per finishing labour hour Fixed production overhead $36,000 Fixed non-production overhead $27,000 Note: Variable overheads are recovered (absorbed) using hours, fixed overheads are recovered on a unit basis Required: Prepare a standard cost card for one unit and and enter on the standard cost card the following subtotals: Prime cost Variable production cost Total production cost Total cost Calculate the selling price per unit allowing for a profit of 25% of the selling price.
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.
- Gordon Helps and Associates Company makes two products. Information regarding one of those products is given below:
Budgeted output /Sales for the year: 900 units
Standard details for one unit
Direct materials 40 square metres at $5.30 per square meter
Direct wages Bonding department : 24 hours at $5.00 per hour
Finishing depart: 15 hours at $4.80 per hour
Variable overhead $1.50 per bonding labour hour
$1 per finishing labour hour
Fixed production overhead $36,000
Fixed non-production overhead $27,000
Note: Variable overheads are recovered (absorbed) using hours, fixed overheads are recovered on a unit basis
Required:
- Prepare a
standard cost card for one unit and and enter on the standard cost card the following subtotals: - Prime cost
- Variable production cost
- Total production cost
- Total cost
- Calculate the selling price per unit allowing for a profit of 25% of the selling price.
NB: This is one question, you are required to followed to the instruction.
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