Question

1 точистограЫсстат с Fantasy Budget Co. makes two products, basic saddles and deluxe saddles. Data for the month on November of the current year are as follow: Budgeted Sales Production Information Basic Deluxe Basic Deluxe Units 9,250 6,200 Leather 5 m2 10 m2 340 420 Padding 10 kg 4 kg Direct Labour 3 hours 2 hours Price Units m Inputs Leather Padding Direct Labour Cost per unit- Upcoming month 14.75 2.00 22.00 Cost per unit - Previous month 14.00 2.20 22.00 kg hours Inventories Beginning inventory - Units Beginning inventory - Cost Target Ending Inventory - Units Materials Leather Padding Total 1,100 1,800 15,400 3,960 19,360 1,670 970 Finished Goods Basic Deluxe Total 463 310 78,625 62,248 140,873 740 500 Required: For the current month, prepare: Revenue budget Production budget Direct materials usage budget Direct materials purchases budget Direct manufacturing labour budget

please full calculation and explanation.

Answer 1

Fantasy Budget Co. Revenue Budget for the month of November Currency Units Selling price Total Notes P.U. revenue Basic Saddles Deluxe Saddles Total budgeted revenue 9,250 340 3,145,000 6,200 420 2,604,000 15,450 5,749,000 Notes for students: Mathematically, Budegted revenue = Budgeted sales (in units) X Selling proce per unit

Fantasy Budget Co. Production Budget in units for the month of November Products Units: Notes Basic Deluxe Saddles Saddles Budgeted sales Add: Target closing stock Total quantity required Less: Opening stock Units to be produced 9,250 6,200 740 500 9,990 6,700 463 310 9,527 6,390

Fantasy Budget Co. Direct material usage budget for the month of November Basic Cost per Total cost of Units Notes Unit materials Saddles used Units to be produced 9,527 Leather @5 per finished product Paddling@10Kg per finished product Direct material usage (units and cost) 47,635 15 702,616 m2 m2 95,270 KG 2 190,540 142,905 893,156 Units Notes Deluxe Cost per Total cost of Unit materials Saddles used Units to be produced Leather@10m2 per finished product Paddling@4Kg per finished product Direct material usage (units and cost) 6,390 m2 63,900 15 942,525 KG 25,560 51,120 89,460 993,645 Units: Total Notes Cost per Total cost of Unit materials used Leather @10m2 per finished product Paddling@4Kg per finished product Direct material usage (units and cost) m2 111,535 15 1,645,141 120,830 232,365 KG 2 241,660 1,886,801

Fantasy Budget Co Direct material Purchases budget for the month of November Units Notes Leather Paddling (m2) (KG) Target closing stock Units required for production Total quantity required Less: Opening stock In units Units to be purchased Unit price Purchase cost 1,670 970 111,535 120,830 113,205 121,800 1,100 1,800 120,000 112,105 14.75 2 1,653,549 240,000

Fantasy Budget Co. Direct manufacturing labour budget for the month of November Hours Notes Basic Cost per Total cost of materials Saddles Unit used Units to be produced Direct Labour @3 hours per unit Direct material usage (units and cost) 9,527 hours 28,581 22 628,782 28,581 628,782 Hours Notes Deluxe Cost per Total cost of materials Saddles Unit used Units to be produced Direct Labour @ 2 hours per unit Direct material usage (units and cost) 6,390 hours 12,780 22 281,160 12,780 281,160 Total 41,361 909,942