Master Budget Textbook Example in Chapter 7.xlsx

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input zones Sales Budg Quarter 1 2 3 3,000 3,500 4,000 Unit Selling Price $60 $60 $60 $180,000 $210,000 $240,000 Production Bu Quarter 1 2 3 3,000 3,500 4,000 Add: Desired ending inventory 700 800 900 20% of next quarter's sales Total required units 3,700 4,300 4,900 Less: Beginning Inventory (equals ending of last quarter or 20% of this quarters sales) 600 700 800 3,100 3,600 4,100 Direct Materials Quarter 1 2 3 3,100 3,600 4,100 Direct materials per unit (kg) 2 2 2 Total materials (kg) 6,200 7,200 8,200 Add: Desired ending materials (kg) 10% of next quarter production 720 820 920 Total materials required (kg) 6,920 8,020 9,120 Less Beginning (equals ending of last quarter or 10% of this quarters materials) 620 720 820 Direct materials purchases (kg) 6,300 7,300 8,300 Cost per kilogram $4 $4 $4 Total cost of material purchases $25,200 $29,200 $33,200 Cost per unit $8 $8 $8 Direct Labour B Quarter 1 2 3 Units to be produced 3,100 3,600 4,100 Unit Sales Total Sales Dollars Unit Sales Required Production UNITS Units to be produced 2 0% 10%
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Direct labour hours per unit 2 2 2 Total labour hours required 6,200 7,200 8,200 Cost per hour $10 $10 $10 Total Direct Labour cost $62,000 $72,000 $82,000 Labour cost per unit $20 $20 $20 Manufacturing Overh Quarter 1 2 3 Labour hours 6,200 7,200 8,200 Variable costs: Indirect materials ($1.00/labour hour) $1.00 $6,200 $7,200 $8,200 Indirect materials ($1.40/labour hour) $1.40 8,680 10,080 11,480 Utilities ($0.40/labour hour) $0.40 2,480 2,880 3,280 Maintenance ($0.20/labour hour) $0.20 1,240 1,440 1,640 Total Variable costs $18,600 $21,600 $24,600 Fixed costs
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