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Unformatted text preview: Recalculate the factory overhead application rate based on the revised total factory overhead and new direct labor hours. Team Member #4 Calculate the ending finished goods inventory and prepare the selling, general, and administrative expense budget. Team Member #5 Prepare the cash budget. Assume that anticipated taxes are reduced in half. The company will continue with the planned purchase of equipment and debt financing/repayment schedule. Team Member #6 Prepare the budgeted income statement and budgeted balance sheet. The electronic spreadsheet version of this problem includes the existing budget as displayed within Chapter 21 of the textbook. You may find it easiest to revise your portion of that template, and then pass the electronic file along to the next member of the team. As you do so, discuss the importance of communication between colleagues in working through the budgeting process (i.e., sales must communicate with production, etc.)....
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- Spring '11