Direct Materials

Red Oaks 7 per B.F

Granite 10 per sq.ft
Direct Manfacturing Labor 20 per hour

Products
Casual Table Deluxe Table
Red Oaks 12 bf 12
Granite 6 sq ft 8
Direct Manfacturing Labor 4 Hour 6
Tables per Batch 50 batch 40
hour per batch 10 12
Expected Sales 50,000 Units 10,000
Price 600 800
Ending Inv 11000 Units 500
Beg: Inv 1000 Units 500
Beg Inv Amount $ 384,000 $ 262,000

Direct Materials
Red Oaks Granite
Beg Inv 70000 bf 60000 sq ft
End Inv 80000 bf 20000 sq ft

Overhead Cost Drivers

Manfacturing labor hour
Setup-Up labor hour

Overhead Cost
Manfucturing Opearation overhead $ 9,000,000
Machine Setup Overhead $ 3,000,000

Non manfacturing cost

Fixed Variable
Product Design $ 1,024,000 -
Marketing $ 1,330,000 6.5% of Revenue
Distribution $ 1,596,000 $2 Per Cubic Feet Moved

Casual Table 18 Cubic feet

Deluxe table 24 Cubic feet
 Revenue Budget
Units Prcie T.Revenue
Casual 50,000 600 $ 30,000,000
Deluxe 10000 800 $ 8,000,000
Total $ 38,000,000

Production Budget
Casual Table Deluxe Table
Sales 50,000 10,000
End Inv 11000 500
Required units 61,000 10,500
Beg Inv 1000 500
Units to be produced 60,000 10,000

Direct Material Budget

Red Oaks Granite
Casual 720000 360000
Deluxe 120,000 80,000
Total quantity 840,000 440,000

Cost $ 5,880,000 $ 4,400,000

Total Amount

Direct Material Purchase Budget

Red Oaks Granite
Required Quantity 840,000 440,000
Ending Inv 80000 20000
Total Requirement 920,000 460,000
Beg Inv 70000 60000
Purchased Quantity 850,000 400,000

Purchased Cost $ 5,950,000 $ 4,000,000

Direct Labor Budget

Production
quantity Per Unit Hour Total hour
Casual 60,000 4 240000
Deluxe 10,000 6 60,000
Total 300,000

Setup-Up Hours
Casual Deluxe
Units produced 60,000 10,000
Tables per batch 50 40
# of batches 1200 250
Hour per batch 10 12
Total Hour 12000 3,000
Setup-up Hour per table 0.2 0.3

Units Cost per Finished Goods

Casual deluxe
Per unit
Cost Input per unit Total Input per unit
Red Oaks 7 12 $ 84 12
Granite 10 6 $ 60 8
Direct labor 20 4 $ 80 6
Manufacturing Overhead 30 4 $ 120 6
Setup Overhead 200 0.2 $ 40 0.3
$ 384

Ending Inventory Budget

Quantity Cost Per Unit Total
Direct Materials
Red Oaks 80000 7 $ 560,000
Granite 20000 10 $ 200,000 $ 760,000
Finished Goods
Casual 11000 384 $ 4,224,000
Deluxe 500 524 $ 262,000 $ 4,486,000
Total Ending Inventory $ 5,246,000

Cost Of Goods Sold Budget

Beg Finished Good Inventory $ 646,000
Direct material used $ 10,280,000
Direct labor Used $ 6,000,000
Manfacturing Overhead $ 12,000,000
Cost of Goods Manfactured $ 28,280,000
Goods Available for Sale $ 28,926,000
Deduct Ending Inventory $ 4,486,000
Cost of Goods Sold $ 24,440,000

NonManfacturing Cost Budget

 Variable Fixed Total
Product Design - $ 1,024,000 $ 1,024,000
Marketing $ 2,470,000 $ 1,330,000 $ 3,800,000
Distribution $2,280,000 $ 1,596,000 $ 3,876,000
Total $ 4,750,000.00 $ 3,950,000.00 $ 8,700,000

Budgeted Income Statement

For the year ending XYZ

Revenue $ 38,000,000
Cost of Goods Sold $ 24,440,000
Gross Profit $ 13,560,000
Opearting Costs
Product Design $ 1,024,000
Marketing $ 3,800,000
Distribution $ 3,876,000 $ 8,700,000
Opearting Income $ 4,860,000
$ 10,280,000

Total Cost
$ 4,800,000
 $ 1,200,000
$ 6,000,000

15,000

deluxe

Total
$ 84
$ 80
$ 120
$ 180
$ 60
$ 524