| | Prepare the organization annual budget. Please respect the following instructions : |
| 1) | 12 months budget (January to December) |
| 2) | Material |
| | | 0.6529kg material is required to produce 1 unit |
| | | The material purchase price is 4.39$/pound |
| | | 1kg = 2.2046 pound |
| | Direct labor |
| | | The employee is paid 18.72$/hr |
| | | It requires 26 minutes to produce 1 unit |
| | OH variable = 0.2659 $/unit |
| | OH Fixed = 5.64 $/unit |
| 3) | Selling price = above manufacturing cost + 2.15$ |
| 4) | The annual production volume is 6,125,333 units broken as followed |
| | Month-1 | 3% |
| | Month-2 | 5% |
| | Month-3 | 11% |
| | Month-4 | 14% |
| | Month-5 | 8% |
| | Month-6 | 12% |
| | Month-7 | 7% |
| | Month-8 | 6% |
| | Month-9 | 15% |
| | Month-10 | 1% |
| | Month-11 | 2% |
| | Month-12 | 16% |
| 5) | Fixed costs detail (cost per year) |
| | | Plant depreciation | | | 1,354,985 |
| | | Plant electricity | | | 987,500 |
| | | management salaries | | | 3,045,879 |
| | | mecanic salaries | | | 1,525,984 |
| | | Phone | | | 524,685 |
| | | tools | | | 568,974 |
| | | rent | | | 2,678,954 |
| | | 40% of the balance = insurance |
| | | 60% of the balance = city taxes |
| | These expenses are evenly distributed among the months |
| | You must show these detailed expenses in the budget |
| 6) | Variable costs detail |
| | | repair parts - variable | | | 0.1348 | $/unit |
| | | The balance is the Machine electricity |
| | You must show these detailed expenses in the budget |
| 7) | Assume all the quantities produced are sold in the following month |
| | Therefore there are no sales in January |
bappi
test.xlsx
