Park A. Aniak-comm Anah ah Paril . Budgets The mimicment of Quiver he wants to determine the number of does mcquinal to bask cron par During July of the ciment your , the mmagent of Quivers he sokol the conbulky, Robin, bo propane month. The utilities cost, which is part of factory overhead , is a mixed cast The blowing August nmu bewiring and income statement budgets Denand win exported to be 1.500 boss of jel was at in bemotion wins poheral from the find six months of operation munding this cost: $100 parcice ber August Inventory planning in motion is provided in bellows : Month Finished Goods Inventory Januan BOLLOO Februar 800 660 00 Cart March 1.200 740.00 Extinctal finichol yoods inventory, August 1 300 $ 12,000.00 1 100 720.00 Desired michel youds inventory, August 31 175 $ 7010200 950 690.00 1,025 705.00, Cream Dare fog) Exdinvital mikeruk inventory, August I 2:50 1. Belemine the fixed and wordle portion of the utility cost using the high low method. Destined nicruk inventory, August 31 1.010 360 240 2. Determine the contrinution margin por cine I. Determine the fixed costs per month, including the utility fixed cost from question (1) 4 Belemine the book-even num beref coes per month There wins negligible work in process inventory soumad brother the beginning orend of the month; thus none wias soonmal. In saldition, there was no change in the cost per unit or clinical unit por box uponting damn from January- S.Prepare the August production budget S. Prepare the August diread milkricks punchices budget J.Prepare the August direct thor cost budget Round the houm mauinal ber production to the nearest hour 3. Prepare the August Extory overhead cost budget Prepare the August budgcied income stoicmint, including selling expenses Part C. August Variance Analysis During September of the current your, Robin was asked to perform variance analyses for August. The January operating data provided the standard prices, mates, Imos, and quantities porcase. There were 1,500 actual cases produced during August, which was 250 more cases than planned at the beginning of the month. Actual data for August wore as follows: Actual Direct Actual Direer Material Materials Price Materials 10. Belemine and interpod the dinat niterid price and quantity vabme for the three micrisks per Unit Quandry per Cream Bara 0.160 102 I L. Belemine and interpod the dinai ber nie and time virime for the two departments. Round hour be the nomad hour. Natural Ols (or] 0.32 31 0.42 12.5 13. Belemine and intoped the Eatery overhead veline variance Asos why are the standand dinat bhur and direct nicrick costs in the oakcubtions brats (10j and (II) based on the actual 1.501-Go production velin mather than the planned 1.175 boss of production usal in the budget berquestions The prices of the mikerub were different from standand due to fluctuations in naked press The standard Actual Direct Actual Direer quantity of mileruck usal peruice wins in ideal standand. The Mixing Department usual a higher poale baror Labor Time per chooification during the month, thus causing the actual ber nie to excel stedand. The Filling Department Labor Rare Case (minutes) used a lower youle bhor ebootification during the month, thus causing the actual bor mile to be less than 18.20 19.50 Filling 14.00 5.60 Actual Variable Overhead 305.00 Nomal Volume (Cascal 1.600REQUIREMENT #5: Develop the production budget. Quivers Inc. Production Budget For the Month Ended August 31 Cases Expected cases to be sold Plus desired ending inventory Total units required Less estimated beginning inventory Total units to be producedRequirement #6: Develop the direct materials purchases budget. Quivers Inc. Direct Materials Purchases Budget For the Month Ended August 31 Cream Natural Bottles Total Base (oz.) Oils (OZ.) (bottles) Units required for production Raw Materials Plus desired ending inventory Units x Volume = Total Total units required Cream Base Less estimated beginning inventory Natural Oils Total materials to be purchased Bottles x Unit price Total direct materials to be purchasedRequirement #7: Develop the direct labor cost budget. Quivers Inc. Direct Labor Cost Budget For the Month Ended August 31 Labor Mixing Filling Total Units x Production Time Hour = Total Mixing Hours required for production of: Filling Ophelia Wax Product x Hourly rate Total direct labor costA B c D E Requirement #8: Develop the factory overhead cost budget. Quivers Inc. Factory Overhead Cost Budget For the Month Ended August 31 Fixed Variable Total Utilities Faciity Lease Equipment Depreciation Supplies Total factory overhead cost _ Fixed Cost [from Question 3] Variable Utility Cost Cases Cost Total Requirement #9: Create the budgeted income statement. Quivers Inc. Budgeted Income Statement Units x Price = Total For the Month Ended August 31 Sales Sales Selling Expenses Finished goods inventory, August 1 Direct materials: Direct materials inventory, August 1 Direct materials purchases [from Question 6] Cost of direct materials available for use Less direct materials inventory, August 31 Cream Base (oz.) Oils (oz.) Bottels (oz.) Total Cost of direct materials placed in production Direct materials inventory, August 1 Direct labor [from Question 7] Direct materials inventory, August 31 Factory overhead [from Question 8] Cost of goods manufactured Rate Cost of finished goods available for sale Cream Base (oz.) Less finished goods inventory, August 31 Oils (oz.) Cost of goods sold Bottels (oz.) Gross profit Selling expenses Income from operationsDevelop the production budget. Develop the direct materials purchases budget. Develop the direct labor cost budget. Develop the factory overhead cost budget. Create the budgeted income statement. 5 - Production Budget - Direct Materials Purchases 7 - Direct Labor Cost 8 - Factory Overhead Cost 9 - Budgeted Income statement