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Activity-Based Budget for Merit Industries; Banana Computer

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Activity-Based Budget

Merrit Industries Inc. has the following budget information available for February:

Administration $40,000
Advertising $15,000
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:

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Solution Summary

The solution prepares a February activity-based budgeting income statement and also develops a Master Budget for a Manufacturing Organization.

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