Question: Activity: Outdoor sofas http://www.outdoorlivinadirect.com.au Product Basic Premium Projected sales Budgeted Units 15,000 10,000 Price 899 1,299 Expected target 1 Jan 2015 20,000 31 Dec

10,000 Price 899 1,299 Expected target 1 Jan 2015 20,000 31 Dec

Activity: Outdoor sofas http://www.outdoorlivinadirect.com.au Product Basic Premium Projected sales Budgeted Units 15,000 10,000 Price 899 1,299 Expected target 1 Jan 2015 20,000 31 Dec 2015 25,000 8,000 9,000 Amount Used per unit Expected Inventory Direct Expected Price Basic Materials A (in kg) $12 (was $11) 5 B (in kg) $20 3 C (in units) $15 0 Premium 752 1 Jan 2015 31 Dec 2015 6,000 3,000 10,000 5,000 11,000 8,000 Step 1: Prepare the Revenue Budget Question: How many products can be sold? Griffith Business School 3 Step 2: Prepare the Production Budget (in units) Question: How many products should be produced? Griffith Business School 4 Step 3a: Direct Material Usage Budget in Quantity and Dollars

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Detailed Explanation Revenue Budget To prepare the revenue budget we need to calculate the expected revenue from the projected sales of both Basic and Premium outdoor sofas ... View full answer

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