RequiredA. Prepare the following monthly budgets for the upcoming first quarter for Harmony's sling bag business (present|quarter totals for each budget, as well)1. Sales forecast2. Production budget3. DM purchases budget for (i) fabricand (ii) rope4. DL budget5. MOH budgetB. By using the most realistic information possible in Harmony's budget how that might affect her employees'motivation in the meeting the budget (for sales) and in the exceeding the budgets (in the production areas includedabove).C. Explain what other approaches Harmony might use to help generate more buy-in for these budgets. Harmony's company is now in its sixth year of operations. Harmony credits much of her success to herhard-working great-aunt, who taught Harmony the value of planning. Harmony realizes she can't planfor every scenario, but she can plan for the most likely ones. This mindset is essential resource usagesfor the upcoming period as follows.January FebruaryMarchAprilМayJuneBugeted Sales Volume15,00014,00013,00016,00018,00020,000Budgeted Resource Usage for One UnitBudgeted Resource Costs0.3 square yards of fabric1 linear yard of lightweight rope3 per square yard0.50 per linear yard$6 minutes of direct labor time13 per DL hour6 minutes of machine time8 per machine hourAddition Information:1. Budgeted selling price per unit: $102. Target ending FG inventory of sling bags: 15% of following month's sales volume3. Target ending DM inventory of fabric: 20% of following month's production needs4. Target ending DM inventory of rope: 40% of following month's production needs5. Budgeted Fixed-MOH costs: Supersiver salaries of $3,000 per mont; Depreciation of $2,500 per month; Propertytaxes and insurance of $1,200 per month.

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Answered: Harmony's company is now in its sixth…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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