Example You need to create a budget for the coming year in the fo will need to use the estimating techniques from the entire semester to determine the budget amounts for each line item. rmat of a P&L statement. You Last year you made 150.000 widgets and sold all of what you produced. For the coming year. you can assume that your sales will increase by 12%. Each widget sells for $17.59 Your current productivity standard is .22 hours per widget. The historical nonproductive time is 16%. The average hourly rate for production workers is S17.50 per hour and benefits are an additional 22% of the total wage. For every 5 workers on duty there is a shift supervisor. In addition, there is a plant manager and administrative assistant for the plant. . The average hourly rate for the Supervisor-S25.64, Plant Manager S39.50, and Administrative Assistant-$16.50 per hour and benefits are an additional 23% of the total wage e e The company policy is to hire operators as a .9 FTE to have flexibility in staffing during increased production periods. A partial FTE would be counted as l headcount. Fixed staffing is hired as a 1.0 FTE The material cost of the widgets is $1.23 per widget and there is a 10% scrap rate. In addition to material costs there is a machine cost associated with the production of each widget. e The hourly cost of the machine (which includes preventative maintenance) is S0.38 per hour On a quarterly basis, you provide company training at a cost of $120.00 per headcount. Annually you have a company picnic at a cost of S15,000.00 Your sales cost is 10% of your material and machining costs combined. At year end, you pay out bonuses equal to 1% of the earnings. e