The budget director of Royal British Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every a. Estimated sales of William and Kate chairs for MarchEastern Domestic: William7,500 units at $800 per unit Kate6,000 units at $650 per unitWestern Domestic: William6,000 units at $700 per unit Kate7,500 units at $550 per unitInternational: William4,250 units at $600 per unit Kate1,000 units at $350 per unitb. Estimated inventories at March 1:Direct materials: Finished products: Fabric 5,500 sq. yds. William1,500 units Wood 13,700 lineal ft. Kate300 units Filler 3,800 cu. ft. Springs 3,500 units c. Desired inventories at March 31:Direct materials: Finished products: Fabric 9,000 sq. yds. William2,000 units Wood 20,000 lineal ft. Kate900 units Filler 5,000 cu. ft. Springs 7,500 units d. Direct materials used in production:In manufacture of William: Fabric 4.0 sq. yds. per unit of product Wood 16 lineal ft. per unit of product Filler 3.8 cu. ft. per unit of product Springs 14 units per unit of productIn manufacture of Kate: Fabric 2.5 sq. yds. per unit of product Wood 12 lineal ft. per unit of product Filler 3.2 cu. ft. per unit of product Springs 10 units per unit of producte. Anticipated purchase price for direct materials:Fabric $9.00 per sq. yd. Filler $1.50 per cu. ft.Wood 5.00 per lineal ft. Springs 2.00 per unit f. Direct labor requirements:William: Framing Department 2.5 hrs. at $15 per hr. Cutting Department 1.0 hr. at $12 per hr. Upholstery Department 3.0 hrs. at $16 per hr.Kate: Framing Department 1.5 hrs. at $15 per hr. Cutting Department 0.5 hr. at $12 per hr. Upholstery Department 2.0 hrs. at $16 per hr.Required:1. Prepare a sales budget for March.Royal British Furniture CompanySales BudgetFor the Month Ending March 31Product and AreaUnit Sales VolumeUnit Selling PriceTotal SalesWilliam: Eastern Domesticfill in the blank 290a74f2a04f00d_1$fill in the blank 290a74f2a04f00d_2$fill in the blank 290a74f2a04f00d_3Western Domesticfill in the blank 290a74f2a04f00d_4fill in the blank 290a74f2a04f00d_5fill in the blank 290a74f2a04f00d_6Internationalfill in the blank 290a74f2a04f00d_7fill in the blank 290a74f2a04f00d_8fill in the blank 290a74f2a04f00d_9Totalfill in the blank 290a74f2a04f00d_10 $fill in the blank 290a74f2a04f00d_11Kate: Eastern Domesticfill in the blank 290a74f2a04f00d_12$fill in the blank 290a74f2a04f00d_13$fill in the blank 290a74f2a04f00d_14Western Domesticfill in the blank 290a74f2a04f00d_15fill in the blank 290a74f2a04f00d_16fill in the blank 290a74f2a04f00d_17Internationalfill in the blank 290a74f2a04f00d_18fill in the blank 290a74f2a04f00d_19fill in the blank 290a74f2a04f00d_20Totalfill in the blank 290a74f2a04f00d_21 $fill in the blank 290a74f2a04f00d_22Total revenue from sales $fill in the blank 290a74f2a04f00d_23 2. Prepare a production budget for March.Royal British Furniture CompanyProduction BudgetFor the Month Ending March 31 William UnitsKate UnitsExpected units to be soldfill in the blank fb7d9efc6f8ffa9_1fill in the blank fb7d9efc6f8ffa9_2 Plus desired inventory, March 31Plus desired inventory, March 31Totalfill in the blank fb7d9efc6f8ffa9_6fill in the blank fb7d9efc6f8ffa9_7 Less estimated inventory, March 1Less estimated inventory, March 1Total units to be producedfill in the blank fb7d9efc6f8ffa9_11fill in the blank fb7d9efc6f8ffa9_12 3. Prepare a direct materials purchases budget for March.Materials Purchases BudgetFor the Month Ending March 31 Fabric (sq. yds.)Wood (lineal ft.)Direct MaterialsFiller (cu. ft.)Springs (units)TotalRequired units for production: Williamfill in the blank 96a9d4f10053ffa_1fill in the blank 96a9d4f10053ffa_2fill in the blank 96a9d4f10053ffa_3fill in the blank 96a9d4f10053ffa_4 Katefill in the blank 96a9d4f10053ffa_5fill in the blank 96a9d4f10053ffa_6fill in the blank 96a9d4f10053ffa_7fill in the blank 96a9d4f10053ffa_8 Plus desired inventory, March 31Plus desired inventory, March 31Plus desired inventory, March 31Plus desired inventory, March 31 Totalfill in the blank 96a9d4f10053ffa_14fill in the blank 96a9d4f10053ffa_15fill in the blank 96a9d4f10053ffa_16fill in the blank 96a9d4f10053ffa_17 Less estimated inventory, March 1Less estimated inventory, March 1Less estimated inventory, March 1Less estimated inventory, March 1 Total units to be purchasedfill in the blank 96a9d4f10053ffa_23fill in the blank 96a9d4f10053ffa_24fill in the blank 96a9d4f10053ffa_25fill in the blank 96a9d4f10053ffa_26 Unit price$fill in the blank 96a9d4f10053ffa_27$fill in the blank 96a9d4f10053ffa_28$fill in the blank 96a9d4f10053ffa_29$fill in the blank 96a9d4f10053ffa_30 Total direct materials to be purchased$fill in the blank 96a9d4f10053ffa_31$fill in the blank 96a9d4f10053ffa_32$fill in the blank 96a9d4f10053ffa_33$fill in the blank 96a9d4f10053ffa_34$fill in the blank 96a9d4f10053ffa_35 ## Direct Labor Cost Budget for March### Royal British Furniture Company**Direct Labor Cost Budget** *For the Month Ending March 31*#### Budget Components:- **Departments:** - Framing Department - Cutting Department - Upholstery Department - Total for all Departments- **Hours Required for Production:** - William - Kate - Total- **Costs:** - Hourly Rate ($) - Total Direct Labor Cost ($)Each department (Framing, Cutting, Upholstery) has designated sections for inputting the required production hours for employees William and Kate. Additionally, spaces are provided for calculating the total production hours, hourly wage rate, and direct labor cost for each department. The total column summarizes these figures across all departments.

Budget: budget is an estimate prepared by the company to know its future goals and actions required…

Answered: he budget director of Royal British…

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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Question

The budget director of Royal British Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every

a. Estimated sales of William and Kate chairs for March

Eastern Domestic:
	William	7,500 units at $800 per unit
	Kate	6,000 units at $650 per unit
Western Domestic:
	William	6,000 units at $700 per unit
	Kate	7,500 units at $550 per unit
International:
	William	4,250 units at $600 per unit
	Kate	1,000 units at $350 per unit

b. Estimated inventories at March 1:

Direct materials:			Finished products:
Fabric	5,500	sq. yds.	William	1,500	units
Wood	13,700	lineal ft.	Kate	300	units
Filler	3,800	cu. ft.
Springs	3,500	units

c. Desired inventories at March 31:

Direct materials:			Finished products:
Fabric	9,000	sq. yds.	William	2,000	units
Wood	20,000	lineal ft.	Kate	900	units
Filler	5,000	cu. ft.
Springs	7,500	units

d. Direct materials used in production:

In manufacture of William:
Fabric	4.0	sq. yds. per unit of product
Wood	16	lineal ft. per unit of product
Filler	3.8	cu. ft. per unit of product
Springs	14	units per unit of product
In manufacture of Kate:
Fabric	2.5	sq. yds. per unit of product
Wood	12	lineal ft. per unit of product
Filler	3.2	cu. ft. per unit of product
Springs	10	units per unit of product

e. Anticipated purchase price for direct materials:

Fabric		$9.00	per sq. yd.		Filler		$1.50	per cu. ft.
Wood		5.00	per lineal ft.		Springs		2.00	per unit

f. Direct labor requirements:

William:
Framing Department		2.5 hrs. at $15 per hr.
Cutting Department		1.0 hr. at $12 per hr.
Upholstery Department		3.0 hrs. at $16 per hr.
Kate:
Framing Department		1.5 hrs. at $15 per hr.
Cutting Department		0.5 hr. at $12 per hr.
Upholstery Department		2.0 hrs. at $16 per hr.

Required:

1. Prepare a sales budget for March.

Royal British Furniture CompanySales BudgetFor the Month Ending March 31

Product and Area	Unit Sales Volume	Unit Selling Price	Total Sales
William:
Eastern Domestic	fill in the blank 290a74f2a04f00d_1	$fill in the blank 290a74f2a04f00d_2	$fill in the blank 290a74f2a04f00d_3
Western Domestic	fill in the blank 290a74f2a04f00d_4	fill in the blank 290a74f2a04f00d_5	fill in the blank 290a74f2a04f00d_6
International	fill in the blank 290a74f2a04f00d_7	fill in the blank 290a74f2a04f00d_8	fill in the blank 290a74f2a04f00d_9
Total	fill in the blank 290a74f2a04f00d_10		$fill in the blank 290a74f2a04f00d_11
Kate:
Eastern Domestic	fill in the blank 290a74f2a04f00d_12	$fill in the blank 290a74f2a04f00d_13	$fill in the blank 290a74f2a04f00d_14
Western Domestic	fill in the blank 290a74f2a04f00d_15	fill in the blank 290a74f2a04f00d_16	fill in the blank 290a74f2a04f00d_17
International	fill in the blank 290a74f2a04f00d_18	fill in the blank 290a74f2a04f00d_19	fill in the blank 290a74f2a04f00d_20
Total	fill in the blank 290a74f2a04f00d_21		$fill in the blank 290a74f2a04f00d_22
Total revenue from sales			$fill in the blank 290a74f2a04f00d_23

2. Prepare a production budget for March.

Royal British Furniture CompanyProduction BudgetFor the Month Ending March 31

	William Units	Kate Units
Expected units to be sold	fill in the blank fb7d9efc6f8ffa9_1	fill in the blank fb7d9efc6f8ffa9_2
	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	fill in the blank fb7d9efc6f8ffa9_6	fill in the blank fb7d9efc6f8ffa9_7
	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be produced	fill in the blank fb7d9efc6f8ffa9_11	fill in the blank fb7d9efc6f8ffa9_12

3. Prepare a direct materials purchases budget for March.

Materials Purchases BudgetFor the Month Ending March 31

	Fabric (sq. yds.)	Wood (lineal ft.)	Direct Materials Filler (cu. ft.)	Springs (units)	Total
Required units for production:
William	fill in the blank 96a9d4f10053ffa_1	fill in the blank 96a9d4f10053ffa_2	fill in the blank 96a9d4f10053ffa_3	fill in the blank 96a9d4f10053ffa_4
Kate	fill in the blank 96a9d4f10053ffa_5	fill in the blank 96a9d4f10053ffa_6	fill in the blank 96a9d4f10053ffa_7	fill in the blank 96a9d4f10053ffa_8
	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31	Plus desired inventory, March 31
Total	fill in the blank 96a9d4f10053ffa_14	fill in the blank 96a9d4f10053ffa_15	fill in the blank 96a9d4f10053ffa_16	fill in the blank 96a9d4f10053ffa_17
	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1	Less estimated inventory, March 1
Total units to be purchased	fill in the blank 96a9d4f10053ffa_23	fill in the blank 96a9d4f10053ffa_24	fill in the blank 96a9d4f10053ffa_25	fill in the blank 96a9d4f10053ffa_26
Unit price	$fill in the blank 96a9d4f10053ffa_27	$fill in the blank 96a9d4f10053ffa_28	$fill in the blank 96a9d4f10053ffa_29	$fill in the blank 96a9d4f10053ffa_30
Total direct materials to be purchased	$fill in the blank 96a9d4f10053ffa_31	$fill in the blank 96a9d4f10053ffa_32	$fill in the blank 96a9d4f10053ffa_33	$fill in the blank 96a9d4f10053ffa_34	$fill in the blank 96a9d4f10053ffa_35

## Direct Labor Cost Budget for March

### Royal British Furniture Company
**Direct Labor Cost Budget**
*For the Month Ending March 31*

#### Budget Components:

- **Departments:**
- Framing Department
- Cutting Department
- Upholstery Department
- Total for all Departments

- **Hours Required for Production:**
- William
- Kate
- Total

- **Costs:**
- Hourly Rate ($)
- Total Direct Labor Cost ($)

Each department (Framing, Cutting, Upholstery) has designated sections for inputting the required production hours for employees William and Kate. Additionally, spaces are provided for calculating the total production hours, hourly wage rate, and direct labor cost for each department. The total column summarizes these figures across all departments.

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