ACIS 2116 Chapter 10 Budget Explanations_Corrected2

ACIS 2116 Chapter 10 Budget Explanations_Corrected2 - Sales...

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* The calculation of MOH is based on the assumption that the overhead rate is based on direct labor hours. Disclaimer: Chapter 10 has way more budgets than the budgets presented here. Created by Ms. Sanchez, your GTA J Sales Budget Budgeted Sales in Units x Selling Price =Total Budgeted Sales Production Budget Budgeted Sales in Units Add: Desired Ending Inventory Equals: Total needs Less: Beginning Inventory Equals: Required Production Cash Receipts Budget Collection of Beginning Accounts Receivable Balance Plus: (Total Budgeted Sales x % Collected) = Total Cash Collections Material Purchases Budget Required Production x Material per unit Equals: Production needs Add: Desired Ending Inventory Equals: Total needs Less: Beginning Inventory Equals: Material to be purchases x Cost per material Equals: Cost of materials to be purchased Direct Labor Budget Required Production x Direct labor hours per unit Equals : Labor hours needed x Direct labor cost per hour Equals: Total direct labor cost MOH Budget* Labor hours needed x Variable Overhead Rate Equals: Variable Manufacturing Overhead Plus: Fixed Manufacturing Overhead Equals: Total Manufacturing Overhead
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This note was uploaded on 09/25/2009 for the course ACIS 2116 taught by Professor Cmeasterwood during the Spring '08 term at Virginia Tech.

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ACIS 2116 Chapter 10 Budget Explanations_Corrected2 - Sales...

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