Reference no: EM13487023

o Part 1 - Technical

 

o Part 2 - Essay ( 1500 - 1800 word)

 

• The assessment criteria are on p. 4.
• Your work must comply with the University's General Guide for the Presentation of Academic Work.https://www.ballarat.edu.au/current-students/publications,-policies-and-forms/general-guide-for-the-presentation-of-academic-work
• This is a group-assignment. Each group needs to have 2 to 3 members in it. Please organise yourselves into groups.
• Please make sure that names and ID numbers of all members are stated on the cover sheet of your submission.
• As this is a group assignment, each member of a group is awarded the same mark. Working in groups has its pros and cons. I am sure that you will hold constructive and energetic group discussions on the issues at hand. In case of any disagreements, you will be able to resolve them in a democratic and rational way. There will be times when you may have to agree to disagree with each other. Invariably different group members bring different skills to a project; it is up to you to make the best of it. I believe one can learn a lot by discussing the issues with one's colleagues.
• If you happen to find your group members are "not pulling their weight" or there are problems with any member's commitment, then please try to resolve those issues amongst yourselves. Open and honest communication always helps. If you are unable to resolve these issues, you are most welcome to see me and we will try to sort out the problems together. Do this as soon as possible and certainly before the due date. [ Please adapt this to suit your group]

 

PART 1:Consider the following data in preparing Ballarat Furniture Company's budget for 2013:

 

Product specification for each table for 2013
Direct Materials
Particle Board (PB)	9 board feet (bf) per table
Red Oak (RO)	10 board feet (bf) per table
Direct Manufacturing Labour
Laminating labour	0.25 hours per table
Machining labour	3.75 hours per table
Inventory information for 2013	Beginning Inventory	Target Ending Inventory
PB	20,000 bf	18,000 bf
RO	25,000 bf	22,000 bf
Finished goods - tables (units)	5,000	3,000
Sales forecast for 2013
Sales volume	52,000 tables
Sales price	$392 per table
Cost information:	2012	2013
PB per board feet	$3.90	$4.00
RO per board feet	$5.80	$6.00
Laminating labour per hour	$24.00	$25.00
Machining labour per hour	$29.00	$30.00
Variable manufacturing overhead costs	$1,900,000
Fixed manufacturing overhead costs	$1,600,000
Manufacturing overhead application base	Expected Direct Labour hours
Inventoriable (manufacturing) cost per table	$275

 

In addition to the above, the following selling and administrative expenses are expected for 2013:

 

Salaries of Sales personnel	$555,760
Marketing	$1, 920,720
Distribution	$729,600
Customer service	$504,992
Administrative	$440,768

 

Required:

 

Prepare an annual budget for Ballarat Furniture Company for 2013. Assume an income tax rate of 40 percent. Include the following schedules:

 

1. Sales budget
2. Production budget (in units)
3. Direct materials usage budget (in units and in dollars)
4. Direct labour budget
5. Budgeted income statement.