How do I calculate the budgeting for this problem?

Printem Mastery Problem: Budgeting LearnCo LeamCo manufactures and sells one product, an abacus for classroom use, with two models, the basic model and the Deluxe model. The company began operations on January 1, 2011, and is planning for 2012, its second year of operations, by preparing budgets from its master budget. 2 The company is trying to decide how many units to manufacture, how much it might spend on direct materials and direct labor, and what their factory overhead expenses might be. In addition, the company is interested in budgeting for selling and administrative costs, and in creating a budgeted income statement showing a prediction of net income for 2012 You have been asked to assist the controller of Learno in preparing the 2012 budgets. Sales Budget The sales budget often uses the prior year's sales as a starting point, and the sales quantities are revised for various factors such as planned advertising and promotion projected pricing changes, and expected industry and general economic conditions. Learn has completed reviewing its prior year's sales and has prepared the following sales budget After reviewing Learnco's sales budget, you note that three numbers have been omitted. The company's controlier has told you that the units sold for the Boucand Deluxe models are expected to be the same. Fill in the missing amounts. Learnco Sales Budget For the Year Ending December 31, 2012 Unit Sales Unit Selling Total Product Volume Price Sales Basic Abacus 36 $216,000 Deluxe Abacus 504,000 Totals 72,000 $720,000 Previous Check My Work Save and Submit Arsime for Gradie All work saved Budget The production budget should be integrated with the sales budget to ensure that production and sales are kept in balance during the year. The production budget estimates the number of units to be manufactured to meet budgeted sales and desired Inventory levels. You note that LearnCo has omitted six numbers from the following production budget and fill in the missing amounts. You may need to use numbers from the sales budget you prepared. LearnCo Production Budget For the Year Ending December 31, 2012 Units Basic Units Deluxe 1,000 3,000 Expected units to be sold (from Sales Budget) Desired ending Inventory, December 31, 2012 Total units available Estimated beginning inventory, January 1, 2012 Total units to be produced (1,050) (2,100) Feb Direct Materials Purchases Budget The direct materiale son but should be intrarated with the endurtin bufet.net.in.net (Previous Check My Work Save and Submit Assignment for Grader All work saved Direct Materials Purchases Budget The direct materials purchases budget should be integrated with the production budget to ensure that production is not interrupted during the year Before you make any changes to the budget, you review the information on the following Direct Materials Data Table and enter the units to be produced from the Production Budget. After scanning the direct materials purchases budget (which follows the Direct Materials Data Table), you observe that Learno has omitted quite a few numbers from the budget. Fill in the missing amounts. You may need to use numbers from the Direct Material Data Table, or from the sales budget and production budget you prepared. When required, round your answers to the nearest dollar Direct Materials Data Table Wood Pieces Beads 1 2 2 3 Packages required per unit: Basic abacus Deluxe abacus Cost per package Wood pieces Beads $0.20 50.20 Units to be produced (from Production Budget) Basic abacus Deluxe abacus Learnco Direct Materials Purchases Budget For the Year Ending December 31, 2012 Precis Check My Work Save and All work saved Submit Angst for Grade scover lity Learn.co Direct Materials Purchase Budget For the Year Ending December 31, 2012 Direct Material Wood Places Packages required for production Basic abacus Bende Total scover on A. son Deluxe abacus 2,200 5,000 Bus.co 2020 (3.500) Desired Inventory, December 31, 20Y2 Total packages available Estimated Inventory, January 1, 2012 Total packages to be purchased Unit price (per package) Total direct materials to be purchased (4,500) und trip glese... x $58,310 JS MAPS VIDE earch Direct Labor Cost Budget Direct inber needs from the direct labor cost budget should be coordinated becween the production and personnel departments so that mere will be tougher available for production. Before you make any changes to the budget, you review the information on the following Direct Libor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Labor Data Table, you observe that leamhaitted it few numbers from the budget. Fit in the missing amounts. You may need to use numbers from the Direct Labor Data Table, or from the sales budget, broduction budget and dired materiale purchases budget you prepared. When required, round your answers to the nearest dollar gema ou Rodra... NO LIMIT Previous Check My Work ments? Sme and Subment for Grading Oy Mico All work savad Part 2) mework Pri tem Direct Labor Cost Budget Direct labor needs from the direct labor cost budget should be coordinated between the production and personnel departments so that there will be magh aber available for production Before you make any changes to the budget, you review the information on the following Direct Labor Data Table and enter the units to be produced from the Production Budget. After scanning the Direct Labor Cost Budget (which follows the Direct Lahor Data Table), you have that came has omitted cuite a few numbers from the budget. Fw in the missing amounts. You may need to use numbers from the Direct Labor Data Table, out from the sales budget, production budget and direct material purchases budget you prepared. When required, round your answers to the nearest dollar Direct Labor Data Table Gluing Assembly Hours required per unit Basic abacus 0.10 0:10 Deluxe abacus 0.10 0.20 Labor hourly rates Gluing $13 Assembly $19 Units to be produced (from Production Budget): Basic abacus X Deluxe abacus LearnCo Direct Labor Cost Budget For the Year Ending December 31, 2012 Gluing Assembly Total Check My Work Sutton for Grading All work saved LearnCo Direct Labor Cont Budget For the Year Ending December 31, 2012 Gluing Assembly Hours required for production Basic abacus Total I Deluxe abacus Total Hourly rate Total direct labor cost 303,230 TOM Review an example of the director cost budget and the computation for each part of the budget. You will need to use the information on the Director Data Table in your computations . : Factory Overhead Cost Budget The factory over and cost budget should be integrated with the production budget to ensure that production is not interrupted during the year. The budget may be supported by departmental schedules, which normally parate factory overhead costs into fled and variable costs so that woment managers may rotor and evaluate couts during the year for simplicity, Learno has not separated cost this manner After reviewing the following factory overhead cost budget you note that learn has completed the budget with the exception stone amount. Fit in the amount Learnco (Previous Check My Work 123 items Submission for Grading All work saved : 47.1% Wear athleuden art.com Search & Discover im Deviation At active vs Reality 3) by Tahiro art.com Beren Discove Om Devotional LearnCo Cost of Good Sold Hudget For the Year Ending December 31, 2012 Finished goods inventory, January 1, 2012 Work in process inventory, January 1, 2012 Direct materials Direct materials inventory, January 1, 2012 $1,600 Direct materials purchases 19,1170 $2,010 mboy station edia bediorg Commuterus.co d_Map 02 2020 zonaws.com Cost of direct materials available for use Direct materials invertory, December 31, 20Y2 Cost of direct materials placed in production 00:00 (1.440) Direct labor it train round trip price - Google com ALL NEWS MAPS PING IMAGES VIDED Montana pedia ipedia.org (1.250) Factory overhead Total manufacturing costs Total work in process during period Work in process inventory, December 31, 2012 Cost of goods manufactured Cost of finished goods available for sale Finished goods inventory, December 31, 2012 Cost of goods sold t - Google Search 10:00 (1.500) odsum edia Visit images sleep with you 7 by KyloRendra... ntart.com SH SEARCH AND OVER O SUBMIT e Final Moments? antart.com 1 Nancy right as the voice of vest Perl(Part 2) Previous Check My Vilark Save and Surat Aarpment for orators Al work svet Selling/Admin. Expenses Budget The sales budget is often used as the starting point for the selling and administrative expenses budget. For example, a budgeted increase in sales may require more advertising expenses. Learn has prepared to selling and administrative expenses budget as follows. This budget is merely reviewed by you for use on the budgeted Income statement Learnce Selling and Administrative Expenses Budget For the Year Ending December 31, 2012 Selling expenses Sales salaries expense 145,000 Advertising expense 15,000 Travel expense 5,400 Total selling expenses $65,400 Administrative expenses Officers salaries expose 185.000 Office salaries expense 35,000 Officerent expense Office supplies expense 6,400 Miscellaneous administrative expenses 1.600 Total administrative expenses 154,000 Total sing and administrative expenses 19,400 Budgeted Income Statement The budget Income statement is prepared by integrating the sales budget cost of good old boy, and selling and administeret. A 26.000 Check My Work Items Save and Sun Alignment for Grading A Wave 47.15 SO WA Realty Co Metin A atation Budgeted Income Statement Data Table Interest revenue for the year $2,000 Interest expense for the year $1,500 Learco's income tax rate 40N Learne Budgeted Income Statement For the Year Ending December 31, 2012 Revenue from sales Cost of goods sold uterBun.co 02 2020 a pom Gross profit Selling and administrative expenses Selling expenses Administrative expenses Total selling and administrative expenses n round trio Google Se.. NEWS MAPS LADES VIDE Operating income Other revenue and expenser org Interest revenue gle Search Interest expense Income before income tax Income Net income magos me Ren Rodra am RCH AND Pro Candy Sand San Gradie al Moments om Nancy She wice Peril Part 21 All we saved 13-Homework Princhem Final Questions Budgeting affects the planning, directing, and controlling functions of management Learno wishes to determine the sensitivity of some of its budget values to change In the economy Using the information on the completed budgets, answer the following questions Comide each question separately, suming that all other data remains the same including the level of production of each model 1. Learco believes that sales of the Dekowe Abacus model mayoncrease in 2012. It Deluxe bacon sales enero, what will be the effect on Learno's income before Income tax For simplicity, Ignore any change in Cost of Goods Sold auf Learnosels zero Deluxe Abacus units in 2012, it will break even le, the company will have income before income tax). b. LearnCo will have a netloss before income tax if it is en Deluxe Abacus units in 2002 2. LoomCo will still have poetive income before income taxes nero Deluwe Abacus is in 2012. 2. Lemos vender for bed packages is expected to double its price per package of beads. If this occurs what will be the effect on Leo's come before income tax a. If the price for bead packages doubles, LearnCo wilbreak even the company will have income before income tax) beanco will have before income tax if the price for bed packages doubles Leance will have positive income before income tax if the price for bead paces doubles 3. Lame is ware that is tabornices for the Gluing part of the manufacturing Proces may increase to $15.00 per hour due to change in minimum www state of this court, what will be the effect on anco's income before income tax? Leace will still have poslove income before income tax in the costs to $15.00 per hour D. 11 Gluing tabor con increase to $15.00 per hout Lame will break even the company will have to come before income) Previous Oy Work - 23/23 tems Sand Sud Agrment for Grading All works Score: 47.15 6. Lenco will have a net kes before income tax it ses per Deluxe Abacus units in 2012 LearnCo will still have positive Income before income itsellerer Dele Ahaus units in or.. 2. Learnos vender for bead packages is expected to double its price per package of best curs, what will be the effect on Lenco's income before Income tax? If the price for bead packages doubles, Lance will break even the company will have zero income before income tax). b. LearnCo will save a loss before Income tax if the price for bead padiages doubles Cleamco will sen have positive Income before income tax the price for bred packages doubles 3. Learno is aware that its labor ces for the Gluing part of the manufacturing process may were to $15.00 per hour due to change in minimum wage laws in state. If this occurs, what will be the effect on the income before income tax? LemCo will still have positive income before income tax if Guing labor costs increase to $15.00 per hour h. If Gluing labor costs increasta $15.00 per hour, Lernce will break event, the company will have recome before income tax) LeamCo will have a loss before income tax Gluing labor cost increase to $15.00 per hour 111 4. Lemos contre beleves that the comman can decrease its sing expenses by 10% and its administratives by 15. How much would come before income taxer the expense cute implemented Round your to the nearest dollar Previous Check My Work items Sow and Suht Aime for Grading All work ved 37.15 dan 20