Assessment: Master Budget and Flexible Budget Preparation Worksheet
Part A - Solve the given problem based on the following scenario.
The managers of Megacorp need you to create the master budget for the months of January, February, and March of 2014.
Using the data provided (attached), prepare the master budget for the first quarter of 2014, including all the following budgets:
1. Monthly sales budgets (showing both budgeted unit sales and dollar sales)
2. Monthly merchandise purchases budgets
3. Monthly selling expense budgets
4. Monthly general and administrative expense budgets
5. Monthly capital expenditures budgets
6. Monthly cash budgets
7. Budgeted income statement for the entire first quarter (not for each month)
8. Budgeted balance sheet as of March 31, 2014
Part B - Solve problems 1-5 based on the following scenario.
Conglomco Company has asked you to develop a flexible overhead budget, based on the data attached.
Complete the problems below. Add your answers in this template and show your work.
Problem 1. Examine the monthly overhead budget to:
- Determine the costs per unit for each variable overhead item and each item's total per-unit costs.
- Identify the total fixed costs per month.
Problem 2. Prepare flexible overhead budgets for September, showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels.
Problem 3. Include the price and quantity variances to compute the direct materials cost variance.
Problem 4. Include the rate and efficiency variances to compute the direct labor cost variance.
Problem 5. Prepare the overhead variance report, showing the overhead variances for individual items.
Attachment:- Assignment Files.rar