Using the assumption information, and the budgeted sheet what are two flaws based on the assumptions or the budget sheet itself.

Buns Bakery -Assumptions Sales: Results for last quarter Loaves of Bread 85,000 Product Muffins Cookies Quantity One-dozen packages except loaves of bread which is each 45,000 65,000 Price 5.50 4.75 5.25 Andy Griffs Price Increases 6.00 $ 5.25 5.75 10% Jeff Barza, Sales Manager Suggestions on Drop in Volume for first quarter Nicole's Assumption 10% Increase in Quarters 2-3 5% Increase in Quarter 4 due to holidays 20% Increase in New Year, Quarter 1 5% Sales to Caf - All Cash 10% Qtr of Sale Qtr after Sale 2 Qtrs after Sale Credit Policy: Cash Collections by Qtr 30% 45% 25% 100% No bad debt Qtr 3 Sales 802,000 Qtr 4 Sales 1,002,500 Production: Inventory Levels based on 90 day Qtr 90 days Raw Materials Needed for Next Qtr 15% Work in Process 2 days Finished Goods Cookies 0.25 Muffins Loaves of Bread Time Requirements Mixing for 8 dozen muffins Mixing for 12 dozen cookies Mixing for 4 loaves of bread 0.25 0.25 Baking for each batch 0.5 0.5 0.5 Packaging for (2) one dozen cookies Packaging for (2) one dozen muffins Packaging for 8 loaves of bread 0.25 0.25 0.25 Labor Requirements Mixers' Hourly Rate Bakers Hourly Rate $ 7.50 8.00 LC 6.50 Packers' Hourly Rate Summary of Ingredients -Exhibit 1 Accounts Payable: Vendor Requirements Percentage paid in Qtr 30 days of making purchase 85% 210,984 31,648.00 $ Dollar Amount of Raw Materials Ordered Accounts Payable Balance 31,647.60 Variable Overhead Rate per Direct Labor Hour 1.50 Proposed Increase to cover Increased Fees 2,00 Fixe per Quarter Depreciation's Percentage of Fixed Overhead rf 160,000 8% 12800 Sales Commission Percentage of Total Sales 1% Selling and Administrative Expenses - Exhibit 2 Debt: Amount of Mortgage Interest Rate Quarterly Payment of Principal 1,109,969 6% 3,350 Disallows prepayment if principal in first 3 years Income Taxes: Tax Rate 30% Balance Sheet for Prior Year - Exhibit 3 Financing Transactions per discussions with Andy Griff, CEO 40,000 25,000 Minimum Cash Balance Dividend Payments each Qtr Issuance of Number of Shares Common Stock at Beginning of Qtr 3 50,000 Capital Provided by Venture 400,000 Qtr1 Qtr 2 Qtr 3 Qtr 4 Purchase of New Equipment $ 75,000 $ 10,000 $ 50,000 35,000 Revolving Line of Credit 1,000,000 assuming withdrawal on first day and paid on last day of quarter Interest Rate on Line of Credit 8% Loares of Bre Maffias Cookies Total 1. Sales Budqet: Sales (in unite) Quarter 1 40,500 58,500 T6,500 Quarter 2 42,525 61,425 80,325 Quarter 3 44,651 64,436 84,341 Quarter 4 53,582 77,396 101,210 342,376 181.258 261,817 Unit Slling Price 6.00 5.25 5.75 $1,374,537.94 $1,368,660.56 1,087,546,50 Total Salea #### Year 2. Production Budget (Maffins): Sales (in units) etr 1 etr 2 Btr 3 etr 4 Hert Yr, etr 1 Sales 40,500 42,525 44,651 53,582 181,258 49,228 1,033.36 Add: Deaired Endina Finighed Goode Inv. 345,00 332.25 1,130.70 1,033.36 182,352 Unite Neaded 41,445 43,517 45,842 54,675 Subtract: Beqinning Finished Goods Inv. s00,00 345.00 42,572.25 332.25 1,190.70 53,484.76 s00.00 Units to be Produced 40,545.00 44,843.70 181,451.71 Production Bdqet (Cookies): Sales ( in units Add: Desired Ending Finished Goods Inv. Units Needed etr 1 etr 2 Rtr 3 etr 4 Year 58,500 61,425 64,436 77,336 261,817 71,107 1580.16 1,365.00 1,433.25 1,719.30 1,580.16 263,337 53,865 62,858 66,216 78,376 1,433.25 64,782.90 Subtract: Beginning Finished Goods Inv. 1,300.00 1,365.00 61,433.25 1,713.30 77,255.76 1,300.00 262,036.31 Units to be Produced 58,565.00 Production Budget fLoares): Sales (in unite Add: Desired Ending Finished Goods Inv etr 1 etr 2 etr 3 etr 4 Year 80,325 1,874.25 82,133 76,500 84,341 101,210 342,376 32,386 2,066.36 2.066.36 1,785.00 2,243.10 Units Needed T8,285 86,530 103,276 344,442 Subtract: Beginning Finished Goods Inv. 1,700.00 76,585.00 1,785.00 80,414.25 1,874.25 84.716.10 2,243.10 101,026.76 1,700.00 342,742.11 Units to be Produced 3. Direct Materials Purchases Budqet Mallias: etr 2 etr 3 etr 4 Year Units to be Produced 40,545.00 42.572.25 44,843.70 53,484,76 181,45171 Raw Materials Requirements DM needed for production (pounds) 40,545.00 42,572.25 44,843.70 53,484.76 181,451.71 ding Raw Materials Inventory 8,022.71 7,384.20 Add: Decired 6,385.84 6,727.46 7,384.20 Total needed (poundo) 46,330.84 43,293.71 52,812.41 60,868.96 188,835.91 6,081.75 40,843.03 6,385.84 42,313,87 6,72746 8,022.7 Subtract: Beq. Raw Materials Inventory Total DM to be purchosed (pounds Cost per (1lb. per doaen 6,081.75 46,144.36 52,846.24 182,154.16 1,31 1.31 1.31 1.31 1.31 233,407.34 Budgeted purchase copt of DM 53.512.30 56,217.17 60,443.90 $ 69,228.58 Cooties: etr 1 etr 2 etr 3 etr 4 Tear 61,433.25 Unite to be Produced 58.565,00 64.782.30 77,255.76 262,036.91 Baw Materiale Requirements DM needed for production (pounds) 58,565.00 61,433.25 64,782.30 77,255.76 262,036.31 10,666.07 87,321.83 11,588.36 Add: Desired Ending Raw Materials Inventory 3,223.33 3,717.44 10,666.07 212,762,38 Total needed (pounds) Subtract: Beg. Raw Materials Inventory Total DM to be purchooed (pounds Cost per (1lb. per dozen 67,788.33 71,210.63 6,371.26 8,784.75 9,223.33 3,717.44 11,588.36 8,784.75 59,004.24 61,386.70 66,653.83 76,333.46 263,378.23 1,73 1,73 1,73 1,73 1,73 105,617.53 Budgeted purchase cost of DM 110,956.13 113,310.35 $136,636.30 472,521.02 Loares of Broad: etr 1 etr 2 etr 3 etr 4 Year 80,414.25 84,716.10 101,026.76 342,742.11 Units to be Produced T6,585.00 Raw Materials Requirements DM needed for production 1 1 76,585.00 80,414.25 84,716.10 101,026.76 342,742.11 Add: Desired Ending Raw Materials Inventory 12,062.14 12,707.42 15.154,01 13,347,33 13,347.33 356,630,04 Total needed 88,647.14 33,121.67 33.870.11 114,374.63 Subtract: Beq. Raw Materiale Inventory 12,062.14 81,053.53 11,487.75 12,707.42 15,154.01 33,820.68 11,487.75 345.202.23 Total DM to be purchased 77153.33 87,162.70 Cost per loaf 1,04 1.04 1,04 1,04 1.04 s 103,813.51 $ 359,010.33 Budgeted purchase cost of DM t 80,245.76 84,301.91 30,643.21 251,475.26 Totals for Each earter 239,375.65 270,409.46 303,678.98 1,070,933.35 4. Direct Labor Budget: Department: Mizinq Muffins Total Rtr 1 etr 2 Rtr 3 etr 4 42,572.25 Units to be Produced 40,545.00 44,849.70 53,484.76 Per Unit of Measure - 8 Dozen 8.00 8.00 8.00 8.00 Number of Batches of 8 Dozen 5,068.13 5,321.53 5,606.21 6,685.53 Cookies Units to be Produced 58,565.00 61,433.25 64,782.30 77,255.76 12.00 Per Unit of Measure - 12 Dozen 12.00 12.00 12.00 Number of Batches of 12 Dozen 4,880.42 5,124.44 5,338.58 6,437.98 Loaves of Bread: 80,414.25 Units to be Produced 76,585.00 84,716.10 101,026.76 Per Unit of Measure - 4 loaves 4.00 4.00 4.00 4.00 Number of Batchea of 4 loaves 13,146.25 20,103.56 21,173.03 25,256.63 130,208.40 Total Batches of Product Per Quarter 29,034.73 30.543.53 32,183.81 38,380.26 Multiply by Time Requirement in Dept 0,25 0.25 0,25 0,25 0.25 7,637.38 #Hours Required to Produce Batch 7,273.70 8,045.95 3,535.07 32,552.10 Multiply by Labor Rate in Dept 7,50 .50 50 7,50 7.50 Labor Cost in Dept 60,344.65 54,552.73 57,280.37 71,963.00 244,140.75 Depart et: Baking etr 4 etr 1 etr 2 etr 3 Muffins: Units to be Produced 40,545.00 42,572.25 44,843.70 53,484,76 Per Unit of Measure - 8 Dozen 8.00 8,00 8.00 8.00 Number of Batches of 8 Dozen 5,068.13 5,321.53 5,606.21 6,685.59 Cookies 58.565.00 Unite to be Produced 61,493.25 64.782.30 77,255.76 Per Unit of Meogure 12 Dozen 12,00 12.00 12.00 12,00 Number of Batches of 12 Dozen 4,880.42 5,124.44 5,338.58 6,437.98 Loaves of Bread: 84,716.10 Units to be Produced 76,585.00 80,414.25 101,026.76 Per Unit of Measure - 4 loaves 4.00 4.00 4.00 4.00 13,146.25 21,173.03 25,256.63 Number of Batches of 4 loaves 20,103.56 23,034.73 30,543.53 38,380.26 Total Batches of Product Per Quarter 32,183.81 130.208.40 Multiplu bu Time Bequirement in Dept 0.50 0.50 0.50 0.50 0.50 Hours Required to Produce Batch 14,547.40 15,274.77 16,031.31 13,130.13 65,104.20 8.00t Multiply by Labor Rate in Dept 8.00 8.00 8.00 8,00 $ 122,138.13 $ 153,521.06 Labor Coat in Dept 116,379.17 128,735.25 520,833.60 Depart eat: Packaqing etr 1 etr 2 etr 3 etr 4 Muffins Units to be Produced 40,545.00 42,572.25 44,849.70 53,484,76 Per Unit of Measure - 2 Dozen 2.00 2.00 2.00 2.00 21,286.13 Number of Batches of 2 Dozen 20,272.50 22,424.85 26,742.38 Cookies Units to be Produced 58,565.00 61,433.25 64,782.30 77,255.76 Per Unit of Measure - 2 Dozen 2.00 2.00 2.00 2.00 Number of Batches of 2 Dozen 29,282.50 30,746.63 32,331.45 38,627.88 Loaves of Bread 80,414.25 Units to be Produced 76,585.00 84,716.10 101,026,76 Per Unit of Measure - 8 loaves 8.00 8.00 8.00 8.00 Number of Batchcs of 8 loaves 9,573.13 10,051.78 10,583.51 12.628.35 65,405.81 Total Batches of Product Per Quarter 53,128.13 62,084.53 77,398.60 264,617.07 Multiply by Time Requirement in Dept 0,25 0.25 15,521.13 0.25 0,25 0.25 #Hours Required to Produce Batch 14,782.03 16,351.45 6.50t 106,284.45 $ 126,747.73 19,499.65 66,154.27 6.50 Multiply by Labor Rate in Dept 6,50 6.50 6.50 100,887,36 Labor Cost in Dept 36,083.20 430,002.74 267,015.10 Totals for Each Quarter 280,365.86 295,364.34 352,231.78 5. Factor Orerhead etr 3 etr 4 etr 1 etr 2 Total Variable Orerhead: 163,810.57 Direct Labor Hours 36,603.13 38,433.28 40.483.31 48.284,85 2.00 $ Multiply by: Proposed Overhead Rate 2.00 2.00 76,866.56 2.00 2.00 327,621.14 640,000,00 Total Variable Overhead 73,206.25 80,378.63 36,563.70 160,000.00 160,000.00 160,000.00 Fixed Overhead 160,000.00 256,569.70 Total Budgeted Overhead 233,206.25 236,866.56 240,378.63 367,621.14 Predetermined Overhead Rate 5,31 Rtr 1 etr 2 etr 3 etr 4 Total 6. Selling and Administratire Badget Sales Commissions 9,300.00 10,335,00 10,314.75 13,037.70 44,307.45 Fixed Expenses 40,000,00 Adverticing 40,000.00 40,000.00 40,000.00 160,000,00 Cleaning Supplies 1,000.00 1,000.00 1,000.00 1,000.00 4,000.00 6,000.00 Janitorial Service 6,000.00 6,000.00 6,000.00 24,000.00 Office Staff Salaries 100,000.00 25,000.00 25,000.00 25,000.00 25,000.00 Office Suppliee 3,000.00 3,000.00 3,000.00 3,000.00 12,000,00 3,000.00 3,000.00 Bent Office 3,000.00 3,000.00 36,000.00 Sales Saloriog 35,000.00 35,000.00 35,000.00 35,000.00 140,000,00 80,000.00 80,000,00 Top Management Salarics 80,000.00 80,000.00 320,000.00 Utilities Office Total Fixed 1,800.00 7,200.00 1,800.00 1,800.00 1,800.00 200,800.00 200,800.00 200,800.00 s 200,800.00 803,200.00 Total Variable& Fixed Expenses $ 213,837.70 211.135,00 847,507.45 210,700.00 211,714.15 7, Cost of Goods Sold Schedale etr 1 etr 2 etr 3 etr 4 Total Total Manufacturing Costs: $ 313,420.67 $ 262,819.24 243,473.33 Direct Materials Needed for Production 231,533.70 Direct Labor Cost 267,015.10 280.365,86 235,364.34 352,231.78 1,194,377.03 233,206.25 236,866.56 766,705,81 16,800.51 783,506.31 367,621.14 Factory Overhead Cost 240,378.63 256,563.70 Total Manufacturing Costs: 737,815,05 T93,162.21 322,222.15 13,831.00 ####### Add: Beqinninq Finished Goods Inventory 13,831.00 17,640.53 816,802.74 21,168.64 751,646.05 343,330.78 Goods Available For Sale Less: Ending Finished Goods Inventory 16,800.51 17,640.53 21,168.64 19,448.63 19,448.63 Cost of Goode Sold T34,845.55 765,865.78 735,634.10 323,342.10 ######## etr 2 etr 4 etr 1 Rtr 3 Total 8. Cost Per Unit Schedule/Ending inreatorg Schedule Muffins 237,701.73 Direct Materials 53,113.95 55,763.65 58,753.11 T0,065.03 Direct Labor 62,718.05 65,853.35 69.376,88 82,134.23 280,683.11 Factory Overhead 52,330.05 168,222.04 55,003.55 57,352.35 186,082.33 63,110.10 234,462.04 $176,633.15 221,303.36 752,846.83 Number of Units Produced 40,545.00 4.15 42,572.25 44,849.70 53,484,76 181,451.71 4.15 Cost Per Unit 4.15 4.15 4.15 Cookies 104,831.35 T6,256.51 64,863.87 Direct Materials 110,072.92 115,361.33 138,287.81 463,153.47 Direct Labor 80,063.34 84.352.73 100,533.44 341,272.02 Factory Overhead 68,107.06 71,750.53 85,564.88 230,286.34 272,064.65 324,446.13 245,351.73 t 258.243.32 t 1,100,711.82 262.036.31 Number of Units Produced 58.565.00 61,433.25 64,782.30 T7,255.76 Cost Per Unit 4.20 4.20 4.20 4.20 4.20 Cost Per Unit 4.15 4.15 4.15 4.15 4.15 Cookies Direct Materials 115,361.33 138,287,81 463,153.47 t 104,831.35 110,072.92 Direct Labor 76,256.51 64.863,87 80,063.34 84,352.73 100,533.44 341,272.02 Factory Overhoad 68,107.06 71,750.53 272,064.65 85,564.88 324,446.13 230,286.34 1,100,711.82 245,351.73 $258,243.32 61,433.25 T7,255.76 Number of Units Produced 58,565.00 64,782.30 262,036.91 Cost Per Unit 4.20 4.20 4.20 4.20 4.20 Bread: 105,067.83 356,451,80 Direct Materials t T9,648.40 128.040.55 83,630.82 88,104.14 Direct Labor 134,442.57 141,634.73 168,304.12 130,541.30 $ 404,513.24$1,372,346.51 573,021.97 Factory Overhoad 103,306.33 306,647.93 321,380.32 98,358,38 109.465,55 442,872.75 333,205.02 80,414.25 Number of Units Produced 76,585,00 84,716.10 101,026.76 342,742.11 Cost Per Unit 4.00 4.00 4.00 4.00 4.00 Bcainning Inventory Balances: 4,116.8 4,940.24 Muffins t 3,734.12 3,320.82 Cookies 5,453.53 5,732.50 6,019.13 7,222.96 Bread 6,806.84 16,000.48 7,147.18 1,504.54 17,640.53 9,005.44 16,800.51 21,168.64 Balance Sheet Ending Inventory Balances: 4,940.24 4,538.84 Muffins 3,320.82 4,116.87 5,732.50 Cookies 6,013.13 7,222.96 6,636.03 Bread 7.147.18 7,504.54 3,005.44 21,168.64 8,273.75 17,640.53 16,800.51 19,448.63 etr 4 Total 8. Pro Forma Income Statement etr 1 etr 2 etr 3 ####### 1,031,475.00 765,865.78 $1,303,770.00 Sales 330,000.00 ######## T95,634.10 Cost of Goods Sold: 734,845.55 255,154.45 273,634.22 323,342.10 3,220,287.53 385,827.90$1,210,457.47 Gross Profit 295,840.30 Selling and administrative expenses 210,700.00 211,135.00 211,714.75 213,837.70 847,507.45 362,350.02 Income Before Interest and Taxes 44,454.45 62,433.22 84,126.15 171,330.20 Interest Expense 16,438.73 16,643.54 16,533.23 45,833.33 16,543.04 66,236.64 Pretax net operating income 27,804.32 67.577.11 155,431.42 236,653.38 Income taxes 8,341.47 13.751.98 20.273.13 46,623.42 88,336.01 13,463,44 After tax net operating incomo 32,087.35 47.303.38 $108,801.93 207,657.36 Buns Bakery -Assumptions Sales: Results for last quarter Loaves of Bread 85,000 Product Muffins Cookies Quantity One-dozen packages except loaves of bread which is each 45,000 65,000 Price 5.50 4.75 5.25 Andy Griffs Price Increases 6.00 $ 5.25 5.75 10% Jeff Barza, Sales Manager Suggestions on Drop in Volume for first quarter Nicole's Assumption 10% Increase in Quarters 2-3 5% Increase in Quarter 4 due to holidays 20% Increase in New Year, Quarter 1 5% Sales to Caf - All Cash 10% Qtr of Sale Qtr after Sale 2 Qtrs after Sale Credit Policy: Cash Collections by Qtr 30% 45% 25% 100% No bad debt Qtr 3 Sales 802,000 Qtr 4 Sales 1,002,500 Production: Inventory Levels based on 90 day Qtr 90 days Raw Materials Needed for Next Qtr 15% Work in Process 2 days Finished Goods Cookies 0.25 Muffins Loaves of Bread Time Requirements Mixing for 8 dozen muffins Mixing for 12 dozen cookies Mixing for 4 loaves of bread 0.25 0.25 Baking for each batch 0.5 0.5 0.5 Packaging for (2) one dozen cookies Packaging for (2) one dozen muffins Packaging for 8 loaves of bread 0.25 0.25 0.25 Labor Requirements Mixers' Hourly Rate Bakers Hourly Rate $ 7.50 8.00 LC 6.50 Packers' Hourly Rate Summary of Ingredients -Exhibit 1 Accounts Payable: Vendor Requirements Percentage paid in Qtr 30 days of making purchase 85% 210,984 31,648.00 $ Dollar Amount of Raw Materials Ordered Accounts Payable Balance 31,647.60 Variable Overhead Rate per Direct Labor Hour 1.50 Proposed Increase to cover Increased Fees 2,00 Fixe per Quarter Depreciation's Percentage of Fixed Overhead rf 160,000 8% 12800 Sales Commission Percentage of Total Sales 1% Selling and Administrative Expenses - Exhibit 2 Debt: Amount of Mortgage Interest Rate Quarterly Payment of Principal 1,109,969 6% 3,350 Disallows prepayment if principal in first 3 years Income Taxes: Tax Rate 30% Balance Sheet for Prior Year - Exhibit 3 Financing Transactions per discussions with Andy Griff, CEO 40,000 25,000 Minimum Cash Balance Dividend Payments each Qtr Issuance of Number of Shares Common Stock at Beginning of Qtr 3 50,000 Capital Provided by Venture 400,000 Qtr1 Qtr 2 Qtr 3 Qtr 4 Purchase of New Equipment $ 75,000 $ 10,000 $ 50,000 35,000 Revolving Line of Credit 1,000,000 assuming withdrawal on first day and paid on last day of quarter Interest Rate on Line of Credit 8% Loares of Bre Maffias Cookies Total 1. Sales Budqet: Sales (in unite) Quarter 1 40,500 58,500 T6,500 Quarter 2 42,525 61,425 80,325 Quarter 3 44,651 64,436 84,341 Quarter 4 53,582 77,396 101,210 342,376 181.258 261,817 Unit Slling Price 6.00 5.25 5.75 $1,374,537.94 $1,368,660.56 1,087,546,50 Total Salea #### Year 2. Production Budget (Maffins): Sales (in units) etr 1 etr 2 Btr 3 etr 4 Hert Yr, etr 1 Sales 40,500 42,525 44,651 53,582 181,258 49,228 1,033.36 Add: Deaired Endina Finighed Goode Inv. 345,00 332.25 1,130.70 1,033.36 182,352 Unite Neaded 41,445 43,517 45,842 54,675 Subtract: Beqinning Finished Goods Inv. s00,00 345.00 42,572.25 332.25 1,190.70 53,484.76 s00.00 Units to be Produced 40,545.00 44,843.70 181,451.71 Production Bdqet (Cookies): Sales ( in units Add: Desired Ending Finished Goods Inv. Units Needed etr 1 etr 2 Rtr 3 etr 4 Year 58,500 61,425 64,436 77,336 261,817 71,107 1580.16 1,365.00 1,433.25 1,719.30 1,580.16 263,337 53,865 62,858 66,216 78,376 1,433.25 64,782.90 Subtract: Beginning Finished Goods Inv. 1,300.00 1,365.00 61,433.25 1,713.30 77,255.76 1,300.00 262,036.31 Units to be Produced 58,565.00 Production Budget fLoares): Sales (in unite Add: Desired Ending Finished Goods Inv etr 1 etr 2 etr 3 etr 4 Year 80,325 1,874.25 82,133 76,500 84,341 101,210 342,376 32,386 2,066.36 2.066.36 1,785.00 2,243.10 Units Needed T8,285 86,530 103,276 344,442 Subtract: Beginning Finished Goods Inv. 1,700.00 76,585.00 1,785.00 80,414.25 1,874.25 84.716.10 2,243.10 101,026.76 1,700.00 342,742.11 Units to be Produced 3. Direct Materials Purchases Budqet Mallias: etr 2 etr 3 etr 4 Year Units to be Produced 40,545.00 42.572.25 44,843.70 53,484,76 181,45171 Raw Materials Requirements DM needed for production (pounds) 40,545.00 42,572.25 44,843.70 53,484.76 181,451.71 ding Raw Materials Inventory 8,022.71 7,384.20 Add: Decired 6,385.84 6,727.46 7,384.20 Total needed (poundo) 46,330.84 43,293.71 52,812.41 60,868.96 188,835.91 6,081.75 40,843.03 6,385.84 42,313,87 6,72746 8,022.7 Subtract: Beq. Raw Materials Inventory Total DM to be purchosed (pounds Cost per (1lb. per doaen 6,081.75 46,144.36 52,846.24 182,154.16 1,31 1.31 1.31 1.31 1.31 233,407.34 Budgeted purchase copt of DM 53.512.30 56,217.17 60,443.90 $ 69,228.58 Cooties: etr 1 etr 2 etr 3 etr 4 Tear 61,433.25 Unite to be Produced 58.565,00 64.782.30 77,255.76 262,036.91 Baw Materiale Requirements DM needed for production (pounds) 58,565.00 61,433.25 64,782.30 77,255.76 262,036.31 10,666.07 87,321.83 11,588.36 Add: Desired Ending Raw Materials Inventory 3,223.33 3,717.44 10,666.07 212,762,38 Total needed (pounds) Subtract: Beg. Raw Materials Inventory Total DM to be purchooed (pounds Cost per (1lb. per dozen 67,788.33 71,210.63 6,371.26 8,784.75 9,223.33 3,717.44 11,588.36 8,784.75 59,004.24 61,386.70 66,653.83 76,333.46 263,378.23 1,73 1,73 1,73 1,73 1,73 105,617.53 Budgeted purchase cost of DM 110,956.13 113,310.35 $136,636.30 472,521.02 Loares of Broad: etr 1 etr 2 etr 3 etr 4 Year 80,414.25 84,716.10 101,026.76 342,742.11 Units to be Produced T6,585.00 Raw Materials Requirements DM needed for production 1 1 76,585.00 80,414.25 84,716.10 101,026.76 342,742.11 Add: Desired Ending Raw Materials Inventory 12,062.14 12,707.42 15.154,01 13,347,33 13,347.33 356,630,04 Total needed 88,647.14 33,121.67 33.870.11 114,374.63 Subtract: Beq. Raw Materiale Inventory 12,062.14 81,053.53 11,487.75 12,707.42 15,154.01 33,820.68 11,487.75 345.202.23 Total DM to be purchased 77153.33 87,162.70 Cost per loaf 1,04 1.04 1,04 1,04 1.04 s 103,813.51 $ 359,010.33 Budgeted purchase cost of DM t 80,245.76 84,301.91 30,643.21 251,475.26 Totals for Each earter 239,375.65 270,409.46 303,678.98 1,070,933.35 4. Direct Labor Budget: Department: Mizinq Muffins Total Rtr 1 etr 2 Rtr 3 etr 4 42,572.25 Units to be Produced 40,545.00 44,849.70 53,484.76 Per Unit of Measure - 8 Dozen 8.00 8.00 8.00 8.00 Number of Batches of 8 Dozen 5,068.13 5,321.53 5,606.21 6,685.53 Cookies Units to be Produced 58,565.00 61,433.25 64,782.30 77,255.76 12.00 Per Unit of Measure - 12 Dozen 12.00 12.00 12.00 Number of Batches of 12 Dozen 4,880.42 5,124.44 5,338.58 6,437.98 Loaves of Bread: 80,414.25 Units to be Produced 76,585.00 84,716.10 101,026.76 Per Unit of Measure - 4 loaves 4.00 4.00 4.00 4.00 Number of Batchea of 4 loaves 13,146.25 20,103.56 21,173.03 25,256.63 130,208.40 Total Batches of Product Per Quarter 29,034.73 30.543.53 32,183.81 38,380.26 Multiply by Time Requirement in Dept 0,25 0.25 0,25 0,25 0.25 7,637.38 #Hours Required to Produce Batch 7,273.70 8,045.95 3,535.07 32,552.10 Multiply by Labor Rate in Dept 7,50 .50 50 7,50 7.50 Labor Cost in Dept 60,344.65 54,552.73 57,280.37 71,963.00 244,140.75 Depart et: Baking etr 4 etr 1 etr 2 etr 3 Muffins: Units to be Produced 40,545.00 42,572.25 44,843.70 53,484,76 Per Unit of Measure - 8 Dozen 8.00 8,00 8.00 8.00 Number of Batches of 8 Dozen 5,068.13 5,321.53 5,606.21 6,685.59 Cookies 58.565.00 Unite to be Produced 61,493.25 64.782.30 77,255.76 Per Unit of Meogure 12 Dozen 12,00 12.00 12.00 12,00 Number of Batches of 12 Dozen 4,880.42 5,124.44 5,338.58 6,437.98 Loaves of Bread: 84,716.10 Units to be Produced 76,585.00 80,414.25 101,026.76 Per Unit of Measure - 4 loaves 4.00 4.00 4.00 4.00 13,146.25 21,173.03 25,256.63 Number of Batches of 4 loaves 20,103.56 23,034.73 30,543.53 38,380.26 Total Batches of Product Per Quarter 32,183.81 130.208.40 Multiplu bu Time Bequirement in Dept 0.50 0.50 0.50 0.50 0.50 Hours Required to Produce Batch 14,547.40 15,274.77 16,031.31 13,130.13 65,104.20 8.00t Multiply by Labor Rate in Dept 8.00 8.00 8.00 8,00 $ 122,138.13 $ 153,521.06 Labor Coat in Dept 116,379.17 128,735.25 520,833.60 Depart eat: Packaqing etr 1 etr 2 etr 3 etr 4 Muffins Units to be Produced 40,545.00 42,572.25 44,849.70 53,484,76 Per Unit of Measure - 2 Dozen 2.00 2.00 2.00 2.00 21,286.13 Number of Batches of 2 Dozen 20,272.50 22,424.85 26,742.38 Cookies Units to be Produced 58,565.00 61,433.25 64,782.30 77,255.76 Per Unit of Measure - 2 Dozen 2.00 2.00 2.00 2.00 Number of Batches of 2 Dozen 29,282.50 30,746.63 32,331.45 38,627.88 Loaves of Bread 80,414.25 Units to be Produced 76,585.00 84,716.10 101,026,76 Per Unit of Measure - 8 loaves 8.00 8.00 8.00 8.00 Number of Batchcs of 8 loaves 9,573.13 10,051.78 10,583.51 12.628.35 65,405.81 Total Batches of Product Per Quarter 53,128.13 62,084.53 77,398.60 264,617.07 Multiply by Time Requirement in Dept 0,25 0.25 15,521.13 0.25 0,25 0.25 #Hours Required to Produce Batch 14,782.03 16,351.45 6.50t 106,284.45 $ 126,747.73 19,499.65 66,154.27 6.50 Multiply by Labor Rate in Dept 6,50 6.50 6.50 100,887,36 Labor Cost in Dept 36,083.20 430,002.74 267,015.10 Totals for Each Quarter 280,365.86 295,364.34 352,231.78 5. Factor Orerhead etr 3 etr 4 etr 1 etr 2 Total Variable Orerhead: 163,810.57 Direct Labor Hours 36,603.13 38,433.28 40.483.31 48.284,85 2.00 $ Multiply by: Proposed Overhead Rate 2.00 2.00 76,866.56 2.00 2.00 327,621.14 640,000,00 Total Variable Overhead 73,206.25 80,378.63 36,563.70 160,000.00 160,000.00 160,000.00 Fixed Overhead 160,000.00 256,569.70 Total Budgeted Overhead 233,206.25 236,866.56 240,378.63 367,621.14 Predetermined Overhead Rate 5,31 Rtr 1 etr 2 etr 3 etr 4 Total 6. Selling and Administratire Badget Sales Commissions 9,300.00 10,335,00 10,314.75 13,037.70 44,307.45 Fixed Expenses 40,000,00 Adverticing 40,000.00 40,000.00 40,000.00 160,000,00 Cleaning Supplies 1,000.00 1,000.00 1,000.00 1,000.00 4,000.00 6,000.00 Janitorial Service 6,000.00 6,000.00 6,000.00 24,000.00 Office Staff Salaries 100,000.00 25,000.00 25,000.00 25,000.00 25,000.00 Office Suppliee 3,000.00 3,000.00 3,000.00 3,000.00 12,000,00 3,000.00 3,000.00 Bent Office 3,000.00 3,000.00 36,000.00 Sales Saloriog 35,000.00 35,000.00 35,000.00 35,000.00 140,000,00 80,000.00 80,000,00 Top Management Salarics 80,000.00 80,000.00 320,000.00 Utilities Office Total Fixed 1,800.00 7,200.00 1,800.00 1,800.00 1,800.00 200,800.00 200,800.00 200,800.00 s 200,800.00 803,200.00 Total Variable& Fixed Expenses $ 213,837.70 211.135,00 847,507.45 210,700.00 211,714.15 7, Cost of Goods Sold Schedale etr 1 etr 2 etr 3 etr 4 Total Total Manufacturing Costs: $ 313,420.67 $ 262,819.24 243,473.33 Direct Materials Needed for Production 231,533.70 Direct Labor Cost 267,015.10 280.365,86 235,364.34 352,231.78 1,194,377.03 233,206.25 236,866.56 766,705,81 16,800.51 783,506.31 367,621.14 Factory Overhead Cost 240,378.63 256,563.70 Total Manufacturing Costs: 737,815,05 T93,162.21 322,222.15 13,831.00 ####### Add: Beqinninq Finished Goods Inventory 13,831.00 17,640.53 816,802.74 21,168.64 751,646.05 343,330.78 Goods Available For Sale Less: Ending Finished Goods Inventory 16,800.51 17,640.53 21,168.64 19,448.63 19,448.63 Cost of Goode Sold T34,845.55 765,865.78 735,634.10 323,342.10 ######## etr 2 etr 4 etr 1 Rtr 3 Total 8. Cost Per Unit Schedule/Ending inreatorg Schedule Muffins 237,701.73 Direct Materials 53,113.95 55,763.65 58,753.11 T0,065.03 Direct Labor 62,718.05 65,853.35 69.376,88 82,134.23 280,683.11 Factory Overhead 52,330.05 168,222.04 55,003.55 57,352.35 186,082.33 63,110.10 234,462.04 $176,633.15 221,303.36 752,846.83 Number of Units Produced 40,545.00 4.15 42,572.25 44,849.70 53,484,76 181,451.71 4.15 Cost Per Unit 4.15 4.15 4.15 Cookies 104,831.35 T6,256.51 64,863.87 Direct Materials 110,072.92 115,361.33 138,287.81 463,153.47 Direct Labor 80,063.34 84.352.73 100,533.44 341,272.02 Factory Overhead 68,107.06 71,750.53 85,564.88 230,286.34 272,064.65 324,446.13 245,351.73 t 258.243.32 t 1,100,711.82 262.036.31 Number of Units Produced 58.565.00 61,433.25 64,782.30 T7,255.76 Cost Per Unit 4.20 4.20 4.20 4.20 4.20 Cost Per Unit 4.15 4.15 4.15 4.15 4.15 Cookies Direct Materials 115,361.33 138,287,81 463,153.47 t 104,831.35 110,072.92 Direct Labor 76,256.51 64.863,87 80,063.34 84,352.73 100,533.44 341,272.02 Factory Overhoad 68,107.06 71,750.53 272,064.65 85,564.88 324,446.13 230,286.34 1,100,711.82 245,351.73 $258,243.32 61,433.25 T7,255.76 Number of Units Produced 58,565.00 64,782.30 262,036.91 Cost Per Unit 4.20 4.20 4.20 4.20 4.20 Bread: 105,067.83 356,451,80 Direct Materials t T9,648.40 128.040.55 83,630.82 88,104.14 Direct Labor 134,442.57 141,634.73 168,304.12 130,541.30 $ 404,513.24$1,372,346.51 573,021.97 Factory Overhoad 103,306.33 306,647.93 321,380.32 98,358,38 109.465,55 442,872.75 333,205.02 80,414.25 Number of Units Produced 76,585,00 84,716.10 101,026.76 342,742.11 Cost Per Unit 4.00 4.00 4.00 4.00 4.00 Bcainning Inventory Balances: 4,116.8 4,940.24 Muffins t 3,734.12 3,320.82 Cookies 5,453.53 5,732.50 6,019.13 7,222.96 Bread 6,806.84 16,000.48 7,147.18 1,504.54 17,640.53 9,005.44 16,800.51 21,168.64 Balance Sheet Ending Inventory Balances: 4,940.24 4,538.84 Muffins 3,320.82 4,116.87 5,732.50 Cookies 6,013.13 7,222.96 6,636.03 Bread 7.147.18 7,504.54 3,005.44 21,168.64 8,273.75 17,640.53 16,800.51 19,448.63 etr 4 Total 8. Pro Forma Income Statement etr 1 etr 2 etr 3 ####### 1,031,475.00 765,865.78 $1,303,770.00 Sales 330,000.00 ######## T95,634.10 Cost of Goods Sold: 734,845.55 255,154.45 273,634.22 323,342.10 3,220,287.53 385,827.90$1,210,457.47 Gross Profit 295,840.30 Selling and administrative expenses 210,700.00 211,135.00 211,714.75 213,837.70 847,507.45 362,350.02 Income Before Interest and Taxes 44,454.45 62,433.22 84,126.15 171,330.20 Interest Expense 16,438.73 16,643.54 16,533.23 45,833.33 16,543.04 66,236.64 Pretax net operating income 27,804.32 67.577.11 155,431.42 236,653.38 Income taxes 8,341.47 13.751.98 20.273.13 46,623.42 88,336.01 13,463,44 After tax net operating incomo 32,087.35 47.303.38 $108,801.93 207,657.36