Make an activity-based budget for producing aninsulated water bottle. This will involve calculating the costs associated with production and the revenue produced from sales.

Reminder: You have to research about the product and come up with your own numbers. After finding the information, jot down the numbers in the pictures below.

Begin by identifying the assumptions that will drive the budget results:

STEP 1

Assumptions rd 1. Remember that new product you thought of in Module 1? 2. Prepare a sales, production, direct materials, and direct labor budget based on the following assumptions 3. Sales Projections In Units 01 02 Q4 Q4 JLLN 4. Sales Price per Unit uncouth Q1 Q2 Q3 Q4 '3 5. Beginninglnventory \" 6. Desired Ending Inventory '2 *hint, your desired beginning inventoryfor o guorter, shouid eguovr the desired ending inventory ofthe previous quarter 3 7. Material Costs lb. per unit of material ("now many pounds are needed to produce one unit} '4 cost per pound of material '5 Q1 Q2 Q3 Q4 5 8. Material Beginning Inventory lbs. '? 9. Material Desired Ending Inventory lbs. 8 *hint, your desired beginning inventoryfor o guorter, should equal the desired ending inventory ofthe previous quarter '9 10. Labor Costs per hour as 11. Time to produce one unit hour I .l 2, \fProduction Budget Expected number of goods to be produced to meet the sales projection What you need: Sales Forecast - date from the Sales Budget Ending INVEHTUW - irwentor'yr left over from the previous time period Beginning Inventoryr - what i5 left over from the revious reporting period Legend: Data Input Itelculation ITotal Units to he Produced To meet the sales projection, what i5 the quantity you have to produce? Direct Material Budget Expected material that will be needed for production What you need: Units to be produced - taken from Production Budget Materials needed to produce each unit {an assumption] Desired ending inventory of materials {an assumption] Beginning inventory of materials {an assumption] Unit price per lb. {an assumption] Legend: Data Input Calculation Total u1__\" mm Planned Production Needs {in units} _ { _ Materials needed to produce a unIt assumptlon} Production Needs {lbs} Desired Ending Inventory.r of materials {in lbs} Total Needs {lbs} Less: Beginning Inventory.r of materials lbs} Needed Materials {lbs} Cost of materials to produce one unit Coat of Materlala to Produce Required Units What will it cost 1,Irou in I11 for material? Direct Labor Budget Expected costs to produce required products What you need: Units to be produced - taken from Production Budget Direct labor hours required to produce one unit {an assumption} Cost of labor per hour {an assumption} H Legend: Data Input Calculation ITotal Required Units to be Produced [taken from Production Budget] Direct Labor Hours required to produce one unit Hours Required to Fill Production Needs Cost of Labor per hour Total Cost of Labor to Produce Required Units What is it going to cost you in labor to produce the number of units required to meet revenue projections? \f