Explore BrainMass
Share

# Budgeted Income Statement

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Using the attached excel worksheet (attached), Budgeted Income Statement and data below:

Data:

Use the following data to analyze the Budgeted Income Statement's Cost of Goods Sold (assume 40% of the COGS total amount is from direct material costs and 40% is from direct labor costs. The other 20% is from manufacturing overhead):

- Budgeted Production Volume for the first quarter of 2010 = 150,000 units (standard quantity) (assume all units were sold)

- Budgeted Production Volume is recorded based on Standard Per Unit Cost

- Assume Actual Production Volume for the first quarter in 2010 = 200,000 units

- Assume Actual Cost of Goods Sold (COGS) for the first quarter in 2010 = \$1,100,000 (40% direct material, 40% direct labor, 20% manufacturing overhead)

1. Using the information above, calculate the Direct Material Price and Quantity Variances. 2. Are they favorable of unfavorable?

3. Using the information above, calculate the Direct Labor Rate and Efficiency Variances, and Direct Labor Variance. 4. Are they favorable of unfavorable?

5. Discuss how Kaizen Costing and Balance Scorecard tools could be used to better BFBS's performance.

6 Discuss an analysis of the numerical data. 7. Discuss the strengths and/or weaknesses of the BFBS variance analyses. 8. Evaluate the data, discuss your recommendations?

#### Solution Summary

Budgeted income statements are examined. The production volume for the first quarter is examined.

\$2.19
Similar Posting

## Develop a master budget in excel - Harrison Company

PROJECT ONE HARRISON COMPANY BUDGET INSTRUCTIONS

Below you will find the data for Project One. You will be completing budgets and schedules for the firm's first quarter of operations in the year 20XY. Do all schedules and budgets showing the three months of January-March and a Total column, except for the balance sheet. Your budgets and schedules should include the following:

1. Sales budget and Schedule of Sales Cash Collections (Note - for Sales, Production and Direct Materials budgets you may need projections for April and May.)
2. Production budget
3. Direct Materials budget and Schedule of Cash Disbursements for Materials
4. Ending Raw Materials Inventory budget
5. Direct Labor budget and Schedule of Cash Disbursements for Direct Labor
6. Total Fixed and Variable Manufacturing Overhead budget and Schedule of Cash Disbursements for Overhead, and Unit Costs for Overhead
7. Ending Finished Goods Inventory budget
8. Cost Goods Manufactured and Cost of Goods Sold budgets
9. Fixed and Variable Selling and Administrative Expense budget and Schedule of Cash Disbursements for S & A Expenses
10. Schedule of Other Collections and Disbursements not included in budgets or schedules above, or other data in additional data (see below)
11. Cash budget
I suggest you do one month at a time to figure financing needs, repayments of principal, interest and ending cash balance; if financing is needed see additional data on financing.
12. Budgeted Income Statement
You will need to go back and forth between the cash budget and income statement to figure interest expense.
13. Budgeted Balance Sheet for March 31, 20XY
Just show the balance sheet for the end of the quarter not for each month.

PROJECT ONE HARRISON COMPANY BUDGET INSTRUCTIONS

Below you will find the data for Project One. You will be completing budgets and schedules for the firm's first quarter of operations in the year 20XY. Do all schedules and budgets showing the three months of January-March and a Total column, except for the balance sheet. Your budgets and schedules should include the following:

1. Sales budget and Schedule of Sales Cash Collections (Note - for Sales, Production and Direct Materials budgets you may need projections for April and May.)
2. Production budget
3. Direct Materials budget and Schedule of Cash Disbursements for Materials
4. Ending Raw Materials Inventory budget
5. Direct Labor budget and Schedule of Cash Disbursements for Direct Labor
6. Total Fixed and Variable Manufacturing Overhead budget and Schedule of Cash Disbursements for Overhead, and Unit Costs for Overhead
7. Ending Finished Goods Inventory budget
8. Cost Goods Manufactured and Cost of Goods Sold budgets
9. Fixed and Variable Selling and Administrative Expense budget and Schedule of Cash Disbursements for S & A Expenses
10. Schedule of Other Collections and Disbursements not included in budgets or schedules above, or other data in additional data (see below)
11. Cash budget
I suggest you do one month at a time to figure financing needs, repayments of principal, interest and ending cash balance; if financing is needed see additional data on financing.
12. Budgeted Income Statement
You will need to go back and forth between the cash budget and income statement to figure interest expense.
13. Budgeted Balance Sheet for March 31, 20XY
Just show the balance sheet for the end of the quarter not for each month.