I

1) Revenues unit
Budget =
Budgeted units ✗
selling prize

$264 )
( 62 $172 ) -1 146,000 ✗
ooo ✗
,

= $ 22,808 , ON
=

2) The CEO would want to determine whether the revenue

stretched Are faster than

budget is sufficiently .
revenues
growing
to
the market ? It not ,
sharia they increase marketing spending
incentives for the
boost sales or should
they implement more

to increase its sales ?

employees

3) Production Budget =
Budget sales 1- Target end .
FG inventory -

Beg .
FG
inventory
( units) ( units) limits)
( units)

Tung one
+ 21,000
62,000 26,000 -

=
67,0001

Thing two
46 , 000 + 14,00 -
13,000
= 47 00%
,

4) Direct material purchases budget

=
Production unit ✗ DM per unit
+ desired end .im
(in quantities) -

beg .
MV

Material A =
67,000×5 +
47,010 ✗6 1- 40,000
-

37,000
= 620 , 002g

47,000×4 + 35, ooo 52, ooo

67,000×3 + -

Material B
=

=
392,0%
 Material C =
67,020×0
+
47000×2 -112,000 -

lo , ooo

=
96,0°F
5) Direct materials purchase budget
=
Budgeted purchases ✗
Expected purchase prize permit
( in dollars) 4h quantity

Direct material A 1- Direct material B + Direct material C

= (620,000 × 1511)+(392,00×46) + ( 96,000 ✗ $ 5)

=
$9,652 , 0%

6) Direct unit DLX wage rate

manufacturing labor budget production units
= ✗

Thing one

67,00 ✗ 3 ✗ $11 =
$2,211,000

Thing one
✗ 4 ✗ $14 =
$2,652,000
47 ,
ooo

Ital
$2,211 ooo
+ $ 2,632,000
,

= $4,843 , 00%

7) Budgeted finished goods inventory - at December 31,2017

①

Thing one
DM costs :

5 ✗ $11 + s ✗ $6 = $73

labor costs
Direct manufacturing
:

3 ✗ $ 11 = $33
Mott costs :

3 ✗ $19 =
$57

manufacturing costs por unit

Budgeted
$73 + $33 1- $57 $163
=
 Finished goods inventor
of 163 ✗ 26,000 = $4,238,000
②
Thingtwo
DM costs :

+ 4×56 + 2 ✗ $5 =
$100
6 ✗ $11

labor costs
Direct manufacturing
:

$14 ✗ 4 =
$5b

Mott costs :

$19 ✗ 4 = $76

manufacturing costs por unit

Budgeted

$100 + $5b 1- $76 =

$232

Finished goods inventory

$232 ✗ 14,000 = $3,248,000

Budgeted finished goods inventory

at December 31,2017
'

$4,238,000 1- $3,248,000
=
$7,486,000
=

8) The CEO would want to know about the increase

in
target ending inventories .
Is it because it B now satisfying
customer demand
? Is it because of the decreased use of DM

? or is it because workers are now

utilising the direct
inventory
materials more efficiently ?
9) It helps Saadi Corporation . .
.

Communicate directions & -6 different departments

goals
-

d- a
company -6 help them coordinate the actions

they must pursue to satisfy customers & succeed in

the marketplace
Judge performance by measuring financial results against
-

planned objectives ,
activities & timelines -6 learn about
potential problems
Motivate to achieve their
-

employees goals