See attached files.
Merrit Industries Inc. has the following budget information available for February:
Assembly 1/2 hour per unit X $8
Direct materials 2 pounds per unit X $3
Inspection $200 per batch of 1,000 units
Manufacturing overhead $2 per unit
Manufactured units 20, 000
Product development $15,000
Sales units 20,000 units X $30
Setup cost $10 per batch of 1,000 units
Prepared a February activity-based budgeting income statement
Developing a Master Budget for a Manufacturing Organization: Challenge problem
Banana Computer Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro-forma income statement for 2010. You have obtained the following information:
The solution prepares a February activity-based budgeting income statement and also develops a Master Budget for a Manufacturing Organization.