Prepare the monthly MOH budget for the upcoming first quarter for Blue's sling bag business (present quarter totals as well). (Round machine hours per unit to 1 decimal place, eg 15.2) Budgeted Units to be Produced Budgeted Variable-MOH Rate per Machine Hour Total Budgeted Variable MOH Costs Budgeted Foxed-MOH Costs January February
Prepare the monthly MOH budget for the upcoming first quarter for Blue's sling bag business (present quarter totals as well). (Round machine hours per unit to 1 decimal place, eg 15.2) Budgeted Units to be Produced Budgeted Variable-MOH Rate per Machine Hour Total Budgeted Variable MOH Costs Budgeted Foxed-MOH Costs January February
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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Transcribed Image Text:Blue's sling-bag company is now in its sixth year of operations. She credits much of her success to her hard-working great-aunt, who
taught Blue the value of planning. Blue realizes she can't plan for every scenario, but she can plan for the most likely ones. This mindset
is essential to Blue when it is time to budget for her business. She gathers the most likely sales volumes and resource usages for the
upcoming period as follows.
January
Budgeted sales volume 14,000
Budgeted Resource Usage for One Unit
DM: 0,3 square yards of fabric
DM: 1 linear yard of lightweight rope
DL: 6 minutes of direct labor time
Variable-MOH:6 minutes of machine time
Additional information:
.
.
February March April
14,000 14.000 15,000
•
Budgeted Resource Costs
$3 per square yard
$0.50 per linear yard
$14 per DL hour
$7 per machine hour
May
17,000
June
20,000
Budgeted selling price per unit: $11.
Target ending FG inventory of sling bags: 15% of following month's sales volume.
Target ending DM inventory of fabric: 20% of following month's production needs.
Target ending DM inventory of rope: 40% of following month's production needs.
Budgeted Fixed MOH costs: supervisor salaries of $3,000 per month, depreciation on plant assets of $2.400 per month.
property taxes and insurance of $1.200 per month.
Transcribed Image Text:Prepare the monthly MOH budget for the upcoming first quarter for Blue's sling bag business (present quarter totals as well).
(Round machine hours per unit to 1 decimal place, eg 15.2)
Budgeted Units to be Produced
Budgeted Variable-MOH Rate per Machine Hour
Total Budgeted Variable-MOH Costs
Budgeted Foxxed-MOH Costs
Total Budgeted MOH Cost
Less
Non-cash MOH Costs
Total Budgeted Cash Needs for MOH
Show Transcribed Text
January
January
February
c
Prepare the monthly MOH budget for the upcoming first quarter for Blue's sling bag business (present quarter totals as well).
(Round machine hours per unit to 1 decimal place, es 15.2)
February
March
Quarter
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