ACC 207 MDE Manufacturing Budget: Bird Feeder I. Sales and Manufacturing Expenses: Budget and Actual (2014)

n the last 10 years, there have been a number of high-profile incidents in which companies have adversely impacted investors and their own
June 28, 2019
Milestone Two, Part I Use Tables I through IV on the MDE Manufacturing Budget to complete your calculations. Refer to Exhibit 7-2 on page 253 of the text
June 28, 2019

ACC 207 MDE Manufacturing Budget: Bird Feeder

        I.            Sales and Manufacturing Expenses: Budget and Actual (2014)

You will use this table to complete Milestones One and Two.

  Budget ($) Actual ($)
     
Sales 1,050,000 991,700
     
Expenses    
Materials – Cedar 225,000 248,160
Materials – Plastic 37,500 37,741
Factory Worker Labor 300,000 332,760
Materials – Indirect 3,000 2,585
Factory Depreciation 78,000 78,000
Factory Utilities 12,000 12,000
Factory Maintenance and Repairs 5,000 4,500
Shipping ($2.25/each) 112,500 105,750
Sales Commissions ($2.00/unit sold) 100,000 94,000
Office Rent 12,000 12,000
Advertising 20,000 20,000
Liability insurance 5,000 5,000
Office Depreciation 1,000 1,000
Office Salaries 48,000 48,000
     
Total Expenses 959,000 1,001,496

      II.            Contribution Margin: Static Budget and Actual Results (2014)

You will use this table to complete Milestone Two.

   Actual Results  Static Budget Amount
     
Units Sold 47,000 50,000
Revenues ($) 991,700 1,050,000
Manufacturing Costs ($)    
Variable 621,246 565,500
Fixed 94,500 95,000
Gross Margin 275,954 389,500

    III.            Standard Variable Manufacturing Costs (2014)

You will use this table to complete Milestone Two.

  Static Budget Costs Standard Input
     
Direct Materials: Cedar 225,000 3.0 ft/unit
Direct Materials: Plastic 37,500 1.0 ft/unit
Direct Manufacturing Labor 300,000 0.5 hrs/unit
Variable Manufacturing Overhead 3,000 0.3 ft/unit

    IV.            Actual Variable Manufacturing Costs (2014)

You will use this table to complete Milestone Two.

  Actual Costs Actual Input
     
Direct Materials: Cedar 248,160 3.2 ft/unit
Direct Materials: Plastic 37,741 1.1 ft/unit
Direct Manufacturing: Labor ($) 332,760 .60 hr/unit
Variable Manufacturing Overhead 2,585 0.25 ft/unit
 
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