Fast Mobile company approached you as Management Accounting expert to assist them in preparing their 2022 budget.
Question:
Fast Mobile company approached you as Management Accounting expert to assist them in preparing their 2022 budget.
They provided you with the following data:
•Expected number of units to be sold in 2022
o Model 1: 14,000 units
o Model 2: 9,000 units
•Expected selling Price
o Model 1: $250
o Model 2: $200
•Each model requires 5 components (camera, keypad, screen, frame, and motherboard). Model 1 has 2 cameras, while model 2 has only 1 camera.
•Component prices are as follows:
o Camera: $15
o Keypads: $10
o Screen: $20
o Frame: $3
o Motherboard: $12
•The company already had a beginning inventory of 3,000 units of each of the above components at a cost of:
o Camera: $12.50
o Keypads: $9
o Screen: $18
o Frame: $2.75
o Motherboard: $11.50
•No ending inventory of any component item or finished goods is required.
•Both Mobile models need 5.5 hours of labor at a cost of $5.00 per hour.
•Overhead is allocated at a rate of $15 per direct labor hour.
Required:
•Prepare the following for the year 2022:
o Sales Budget
o Component Budget
o Direct Labor Budget
o An overhead Budget
•Prepare a budgeted partial income statement for 2022 till “Gross Profit Line”
Expert Answer:
1 Sales Budget for the Year 2022 Particulars Model 1 Model 2 Total Estimated Sales Units A 14000 9000 23000 Estimated Selling Price Per Unit B 250 200 ... View the full answer
