Prepare the monthly MOH budget for the upcoming first quarter for Vaughn's sling bag business (present quarter totals as well). (Round machine hours per unit to 1 decimal place, e.g. 15.2.) January February
Prepare the monthly MOH budget for the upcoming first quarter for Vaughn's sling bag business (present quarter totals as well). (Round machine hours per unit to 1 decimal place, e.g. 15.2.) 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:Prepare the monthly MOH budget for the upcoming first quarter for Vaughn's sling bag business (present quarter totals as well).
(Round machine hours per unit to 1 decimal place, e.g. 15.2.)
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$
$
January
$
$
February
$
Prepare the monthly MOH budget for the upcoming first quarter for Vaughn's sling bag business (present quarter totals as well).
(Round machine hours per unit to 1 decimal place, e.g. 15.2.)
LII
III
$
Ć
$
January
$
$
March
$
$
February
$
Quarter
Transcribed Image Text:Budgeted sales volume
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
Additional information:
January February March April
13,000 13,000 15,000
Variable-MOH: 6 minutes of machine time
●
16,000
●
Budgeted Resource Costs
$3 per square yard
$0.50 per linear yard
$14 per DL hour
$7 per machine hour
May
16,000
June
19,000
Budgeted selling price per unit: $10.
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 $3,200 per month, depreciation on plant assets of $2,400 per month,
property taxes and insurance of $1,200 per month.
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