Ana Beatriz Rodrigues, Asli Tepencelik, Grace Clarke
January February March
Production 200,000 225,000 150,000
Standard
Quantity
Direct Materials Price Standard Direct
Standard
materials cost
Stainless steel 0.25 8.00 € 2.00 €
Clip for the handle 1 0.10 € 0.10 €
Direct Materials Unit Cost 2.10 €
Standard
Time
Direct Labor Rate Standard Direct Labor
Standard
cost
Stamping Operation 0.03 30.00 € 1.00 €
Direct Labor Unit Cost 1.00 €
Overhead 0.8
Total
575,000
Production Unit Cost
Direct Materials 2.10 €
Direct Labor 1€
Overhead 0.8
Cost Of Goods Manufactured Budget (COGM)
Direct Materials 1207500
Direct Labor Costs 575000
Overhead Expenses 460000
Cost of Goods Manufacture 2242500
Production 575,000
COGM per unit 3.9
January February March Total
200,000 225,000 150,000 575,000
420000 472500 315000 1207500
200000 225000 150000 575000
160000 180000 120000 460000
Total 2242500
Sales Budget
Q1 Q2 Q3
Quantity 40,000 30,000 50,000
Price 1.00 € 1.00 € 1.00 €
Sales 40,000 € 30,000 € 50,000 €
Production Budget
Q1 Q2 Q3
Sales 40,000 30,000 50,000
Inventory End 3,000 5,000 5,500
Inventory Beginning 4,000 3,000 5,000
Production 39,000 32,000 50,500
Direct Materials Purchases Budget
Q1 Q2 Q3
Production 39,000 32,000 50,500
Ounces per unit 20 20 20
Quantity of DM to be used 780,000 640,000 1,010,000
+Inventory End 128,000 202,000 222,000
-Inventory Beginning 156,000 128,000 202,000
Quantity of DM to be Purchased 752,000 714,000 1,030,000
Unit cost of Direct Materials 0.01 € 0.01 € 0.01 €
Cost DM purchases 7,520 € 7,140 € 10,300 €
Direct Labor Budget
Q1 Q2 Q3
Production 39000 32,000 50,500
Direct labor Hours per unit 0.001 0.001 0.001
Total direct labor hours 39 32 50.5
Cost per hour 8€ 8€ 8€
Total cost 312 € 256 € 404 €
Overhead Budget
Q1 Q2
Production Rates 39000 32000
Variable overhead costs
Factory Supplies 0.01 € 390 € 320 €
Employee benefit 0.05 € 1,950 € 1,600 €
Inspection 0.01 € 390 € 320 €
Maintenance and repairs 0.02 € 780 € 640 €
Utilities 0.01 € 390 € 320 €
Total Variable Cost 3,900 € 3,200 €
Total Fixed Costs 1,416 € 1,416 €
Total Overhead Cost 5,316 € 4,616 €
Selling and administrative expenses Budget
Cost rate Q1 Q2
Sales 40,000 € 30,000 €
Variable Selling and adm. costs
Delivery expenses 0.01 400 300 €
Sales commisions 0.02 800 600 €
Accounting 0.01 400 300 €
Other administrative expenses 0.01 400 300 €
Total Variable selling and Adm. expenses 2,000 1,500 €
Total Fixed selling and Adm. Expenses 5,000 5,000
Total selling and Adm. Expenses 7,000 6,500 €
Cost Of Goods Manufactured Budget (COGM)
Direct Materials used:
Direct Materials inventory beginning 1,560 €
Purchases 36,240 €
Cost of direct materials available for use 37,800 €
Less direct materials inventory, ending 2,400 €
Cost of direct materials used 35,400 €
Direct labor costs 1,416 €
Overhead costs 23,364 €
Total manufacturing costs 60,180 €
Work in process inventory, beginning 0
Less work in process inventory, ending 0
Cost of goods manufactured 60,180 €
Units produced 177,000
Manufactured cost per uniy 0.34 €
Q4 Year
55,000 175,000
1.00 € 1.00 €
55,000 € 175,000 €
Q4 Year
55,000 175,000
6,000 6,000
5,500 4,000
55,500 177,000
Q4 Year
55,500 177,000
20 20
1,110,000 3,540,000
240,000 240,000
222,000 156,000
1,128,000 3,624,000
0.01 € 0.01 €
11,280 € 36,240 €
Q4 Year
55,500 177,000
0.001 0.001
55.5 177
8€ 8€
444 € 1,416 €
Q3 Q4 Year
50500 55500 177,000
505 € 555 € 1,770 €
2,525 € 2,775 € 8,850 €
505 € 555 € 1,770 €
1,010 € 1,110 € 3,540 €
505 € 555 € 1,770 €
5,050 € 5,550 € 17,700 €
1,416 € 1,416 € 5,664 €
6,466 € 6,966 € 23,364 €
es Budget
Q3 Q4 Year
50,000 € 55,000 € 175,000 €
500 € 550 € 1,750 €
1,000 € 1,100 € 3,500 €
500 € 550 € 1,750 €
500 € 550 € 1,750 €
2,500 € 2,750 € 8,750 €
5,000 5,000 20,000
7,500 € 7,750 € 28,750 €
