Chapter 10 formulas

Question 1

what is the sales budget formula

Answer 1

multiply expected sales volume in units for each product by its anticipated selling price per unit

Question 2

Ex. for sales budget
3,000 units in the first quarter with 500 unit increments in each quarter after that. show by quarter. Selling price is $60 per unit.

Answer 2

Company Name
Sales budget
for the year ending December 31, 2012
Quarter
1 2 3 4
Expected unit sales 3,000 3,500 4,000 15,000
Unit selling price x$60 x$60 x$60 x$60
Total Sales $180,000 $210,000 $240,000

Question 3

What is the formula for the production budget

Answer 3

Budgeted Sales units + Desired Ending FG Units - Beg FG Units = Required production units

Question 4

What is the formula for DM budget

Answer 4

(Units to produce x raw materials per unit) + desired ending inventory - beginning inventory = raw materials to purchase

Question 5

What is the formula for DL budget

Answer 5

Units to produce x direct labour time per unit x DL cost per hour = total direct labour cost

Question 6

what is the formula for Man OH budget

Answer 6

(DL hours x Variable OH rate) + FMOH - depreciation = cash disbursements for overhead

Question 7

What is the formula for ending FG inventory budget

Answer 7

(DM cost per unit + DL cost per unit + MOH per unit) x ending FG inventory in units = ending FG inventory

Question 8

What is the formula for selling and admin expense budget

Answer 8

(unit sales x V Sell & Adm per unit) + F Sell & Adm exp. = total selling and admin expenses