Submit – Excel File containing the Operating Budget for Fred’s Reproduction.
Within your Excel File, please complete part 2 of the assignment as well. If you prefer, a Word document is acceptable.
REQUIRED
Prepare the following for 2017, based upon forecasted Monthly and Yearly Sales:
Sales Budget (in dollars, per product)
Production Budget (in units, per product)
Direct Materials Usage Budget (in dollars, per product)
Direct Labor Budget (in hours, and in dollars, per carpenter & per helper)
Factory Overhead Budget (in dollars per variable & per fixed)
Administrative & Marketing Budget (in dollars per variable & per fixed)
Budgeted Income Statement (contribution margin format) (R-V=CM-F=P)
One of the purposes of the budgeting process is to encourage management to consider ways to improve profitability next year. Prepare your own proposal for improving profits that:
Defines a proposed change in operations (sales, production, etc),
How the firm would realistically accomplish the change,
The impact of the proposal on the income statement,
Potential drawback(s) to your proposal, and
Your recommendation as to whether management should implement your proposal
