Decimal Places Figurines Electrical Sets Lamp Shade Labor Variable Overhead Percent Increase 9. 24% 1.254 % 64% 2.25 4.50% 0.225 2% $9.5680000 $1.3000000 $6.2400000 $2.3512500 $0.2295000 {4.01} {4.02} {4.03} {4.04} {4.05) Projected Variable Manufacturing Cost Per Unit 18.925 $19.6887500 (4.06} Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 6.50% 20x2 Cost Rounded to 7 Decimal Places 3.3547500 Variable Selling Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.0400000 {4.07} {4.08} {4.09} 5.50% 0.0422000 18.925 Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit $19.6887500 23.0857000 {4.06} {4.10} 22.115 Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places $ 300,000.00 250,000 {4.11} lamps @__) $ 27,000.00 Fixed Overhead (normal capacity of - Fixed Selling Fixed Administrative 20x1 Fixed Administrative 20x2 Projected Total Fixed Costs 40,000.00 $ {4.12} {4.13} {4.14} {4.15) 60,000.00 387,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ $9.20 $1.25 4,600.00 625.00 3000 @ $28.9250 $ 86,775.00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6.800.00 $ 13,200.00 207,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410.00 153,410.00 207,410.00 $ T See The Light Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $28.93 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ Administrative Expenses Total Selling and Administrative Expenses: Net Profit $3.15 $ 23,000.00 7 8,750.00 $ 101,750.00 41.000.00 142,750.00 259,000.00 $ The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 4.00%. 2. Labor Costs are expected to increase by 4.50%. 3. Variable Overhead is expected to increase by 2.00%. 4. Fixed Overhead is expected to increase to $300,000. 5. Fixed selling expenses are expected to be $27,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 6.50%. Fixed Administrative expenses are expected to increase by $20,000. The total administrative expenses for 20x0 were $40,920.00, when 23,000 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.50%. The total administrative expenses for 20x0 were $40,920.00, when 23,000 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. PART 3 Budgets Keep in mind that the budget section builds on work from the previous parts, including Part I as well as the Background Information (tabs 1-4). You should continue to use the same file with your previously submitted answers. Division N has decided to develop its budget based upon projected sales of 43,000 lamps at $55.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the figurines inventory to 575 pieces and increasing the finished goods by 24.00% . 20x2 Cost Rounded to 7 Decimal Places 9 Variable Cost of making one unit next year - used to calculate the Ending Inventory of Finished Goods Material cost per unit Labor Cost Per Lamp Variable Factory overhead per unit Total variable manufacturing cost of one unit (11.01) 20x2 Cost Rounded to 2 Decimal Places 10 Budgeted Operating Income Using Variable (Direct) Costing Sales {11.02) {11.03) Variable Cost of Goods Sold - Assume FIFO (First-In, First-Out) Beginning Inventory, Finished Goods (Variable Costing) Production Costs: Materials: Figurines: Electrical Parts Lamp Shades: Labor: Variable Overhead: Total Variable Production Costs Cost of Goods Available For Sale Less: Ending Inventory, Finished Goods (Variable Costing) Variable Cost of Goods Sold Variable Selling (Round to two places, $##.##) Variable Administrative (Round to two places, $##.##) Total Variable Costs Contribution Margin Fixed Costs: Fixed Manufacturing Overhead Fixed Selling Fixed Administrative Total Fixed Operating Income, Variable Costing {11.04) (11.05) {11.06) (11.07) {11.08} (11.09) Decimal Places Figurines Electrical Sets Lamp Shade Labor Variable Overhead Percent Increase 9. 24% 1.254 % 64% 2.25 4.50% 0.225 2% $9.5680000 $1.3000000 $6.2400000 $2.3512500 $0.2295000 {4.01} {4.02} {4.03} {4.04} {4.05) Projected Variable Manufacturing Cost Per Unit 18.925 $19.6887500 (4.06} Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 6.50% 20x2 Cost Rounded to 7 Decimal Places 3.3547500 Variable Selling Variable Administrative 20x1 Variable Administrative 20x2 3.15 0.0400000 {4.07} {4.08} {4.09} 5.50% 0.0422000 18.925 Projected Variable Manufacturing Unit Cost Projected Total Variable Cost Per Unit $19.6887500 23.0857000 {4.06} {4.10} 22.115 Schedule of Fixed Costs 20x1 Cost Projected Increase 20x2 Cost Rounded to 2 Decimal Places $ 300,000.00 250,000 {4.11} lamps @__) $ 27,000.00 Fixed Overhead (normal capacity of - Fixed Selling Fixed Administrative 20x1 Fixed Administrative 20x2 Projected Total Fixed Costs 40,000.00 $ {4.12} {4.13} {4.14} {4.15) 60,000.00 387,000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 34,710.00 67,500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Figurines Electrical Sets Work in Process Finished Goods Total Current Assets 500 @ 500 @ $9.20 $1.25 4,600.00 625.00 3000 @ $28.9250 $ 86,775.00 194,210.00 $ Fixed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 20,000.00 6.800.00 $ 13,200.00 207,410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 141,410.00 153,410.00 207,410.00 $ T See The Light Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $28.93 $ 1,125,000.00 723,250.00 $ 401,750.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses: Fixed Variable (Commission per unit) @ Administrative Expenses Total Selling and Administrative Expenses: Net Profit $3.15 $ 23,000.00 7 8,750.00 $ 101,750.00 41.000.00 142,750.00 259,000.00 $ The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Figurines Electrical Sets Lamp Shade Direct Labor: Variable Overhead: Fixed Overhead: $9.2000000 per lamp 1.2500000 per lamp 6.0000000 per lamp 2.2500000 per lamp (4 lamps/hr.) 0.2250000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $28.9250000 per lamp Expected increases for 20x2 When calculating projected increases round to SEVEN decimal places,$0.0000000. 1. Material Costs are expected to increase by 4.00%. 2. Labor Costs are expected to increase by 4.50%. 3. Variable Overhead is expected to increase by 2.00%. 4. Fixed Overhead is expected to increase to $300,000. 5. Fixed selling expenses are expected to be $27,000 in 20x2. 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 6.50%. Fixed Administrative expenses are expected to increase by $20,000. The total administrative expenses for 20x0 were $40,920.00, when 23,000 units were sold. Use the High-Low method to calculate the total fixed administrative expense. 8. Variable administrative expenses (measured on a per lamp basis) are expected to increase by 5.50%. The total administrative expenses for 20x0 were $40,920.00, when 23,000 units were sold. Use the High-Low method to calculate the variable administrative expense per lamp. PART 3 Budgets Keep in mind that the budget section builds on work from the previous parts, including Part I as well as the Background Information (tabs 1-4). You should continue to use the same file with your previously submitted answers. Division N has decided to develop its budget based upon projected sales of 43,000 lamps at $55.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting: The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the figurines inventory to 575 pieces and increasing the finished goods by 24.00% . 20x2 Cost Rounded to 7 Decimal Places 9 Variable Cost of making one unit next year - used to calculate the Ending Inventory of Finished Goods Material cost per unit Labor Cost Per Lamp Variable Factory overhead per unit Total variable manufacturing cost of one unit (11.01) 20x2 Cost Rounded to 2 Decimal Places 10 Budgeted Operating Income Using Variable (Direct) Costing Sales {11.02) {11.03) Variable Cost of Goods Sold - Assume FIFO (First-In, First-Out) Beginning Inventory, Finished Goods (Variable Costing) Production Costs: Materials: Figurines: Electrical Parts Lamp Shades: Labor: Variable Overhead: Total Variable Production Costs Cost of Goods Available For Sale Less: Ending Inventory, Finished Goods (Variable Costing) Variable Cost of Goods Sold Variable Selling (Round to two places, $##.##) Variable Administrative (Round to two places, $##.##) Total Variable Costs Contribution Margin Fixed Costs: Fixed Manufacturing Overhead Fixed Selling Fixed Administrative Total Fixed Operating Income, Variable Costing {11.04) (11.05) {11.06) (11.07) {11.08} (11.09)