bmt assigment 1(uzair)

8/14/2019 BMT Assigment 1(Uzair)

1/18

TASK 1:

1. Sales Budget for each four quarters of 2010

First Quarter Sales Unit: 1800

Quarterly unit increment: 200

MEGATECH SDN BHD

Sales Budget

For the Year Ending December 31, 2010

Q1 Q2 Q3 Q4 Year

Expected Sales (in units) 1800 2000 2200 2400 8400

Selling price (RM) 600 600 600 600 600

Total Sales (RM) 1080000 1200000 1320000 1440000 5040000

Calculation for Total Sales (RM)

Q1 = 1800 x 600 Q2 = 2000 x 600

= RM 1080 000 = RM 1 200 000

Q3 = 2200 x 600 Q4 = 2400 x 500

= RM 1320 000 = RM 1440 000


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2. Production Budget for each four quarters of 2010

Since this is a new venture, there is no opening stock.

In order to meet future sales requirement, your are requested to maintain a closing

stock of 10% of the next quarter budgeted sales volume

MEGATECH SDN BHD

Production Budget


Q1 Q2 Q3 Q4 Year

Expected Sales (in units) 1800 2000 2200 2400

Add: Desired ending Finished goods (units) 200 220 240 260

Total required units 2000 2220 2440 2660

Less: Beginning Finished goods (units) 0 200 220 240

Required Production Units 2000 2020 2220 2420 8660

Calculation for desired ending finished goods (units)

Q1 = 2000 x 10% Q2 = 2200 x 10%

= 200 = 220

Q3 = 2400 x 10% Q4 = 2600 x 10%


3/18

= 240 = 260

Calculation for Required Production Units

Q1 = 2000 - 0 Q2 = 2220 - 200

= 2000 = 2020

Q3 = 2440 - 220 Q4 = 2660 - 240

= 2220 = 2420

3. Direct Material Purchases Budget for each four quarters 2010

Prepare the budget for TWO (2) types of direct material only

Since this is a new venture, there is no opening stock

Because of easy access to supplier, it is sufficient to hold a closing stock of raw

material equal to 10% of next quarters budgeted production requirement

MEGATECH SDN BHD

Direct Material (Water Pump) Budget

For the Year Ending December 31, 2010Q1 Q2 Q3 Q4 Year

Units to be produced (from production budget) 2000 2020 2220 2420

Direct material per unit 1 1 1 1

Total DM required for production (units) 2 000 2020 2220 2420

Add: Ending DM (units) 202 222 242 262

Total DM required (units) 2202 2242 2462 2682

Less: Beginning DM (units) 0 202 222 242


4/18

Direct Material to be purchased (units) 2202 2040 2240 2440

Cost per unit 27 27 27 27

Total Cost of DM purchased (RM) 56454 55080 60480 65880 237894

Calculation for Total Cost of DM purchased (RM)

Q1 = 2202 x 27 Q2 = 2040 x 27

= 56454 = 55080

Q3 = 2240 x 27 Q4 = 2440 x 27

= 60480 = 65880

Total Cost of DM purchased (RM)

= Q1 + Q2 + Q3 + Q4

= 56454 + 55080 + 60480 + 65880

= RM 237894

MEGATECH SDN BHD

Direct Material (Sprinkler) Budget


Q1 Q2 Q3 Q4 Year


Direct material per unit 1 1 1 1

Total DM required for production (units) 2000 2020 2220 2420

Add: Ending DM (units) 202 222 242 262

Total DM required (units) 2202 2242 2462 2682

Less: Beginning DM (units) 0 202 222 242

Direct Material to be purchased (units) 2202 2040 2240 2440

Cost per unit 11 11 11 11

Total Cost of DM purchased (RM) 24222 22440 24640 26840 98142


5/18

Calculation for Total Cost of DM purchased (RM)

Q1 = 2202 x 11 Q2 = 2040 x 11

= 24222 = 22440

Q3 = 2240 x 11 Q4 = 2440 x 11

= 24640 = 26840

Total Cost of DM purchased (RM)

= Q1 + Q2 + Q3 + Q4

= 24222 + 22440 + 26840 + 26840

= RM 98 142

4. Direct Labour Budget for each four quarters of 2010

Prepare the budgets for Two (2) types of direct labour only

Based on standard labour time and standard pay rate in your jobs/ standard cost

card

MEGATECH SDN BHD

Direct Labour (Technician) Budget


6/18


Q1 Q2 Q3 Q4 Year


Direct labour time per unit 20/60 20/60 20/60 20/60

Total required direct labour hours 666.67 673.3 740 806.67

Direct labour cost per hour 11.36 11.36 11.36 11.36Total direct labour cost (RM) 7573.37 7648.69 8406.4 9163.77 32762.23

MADS SDN BHD

Direct Labour (Carpenter) Budget


Q1 Q2 Q3 Q4 Year


Direct labour time per unit 20/60 20/60 20/60 20/60

Total required direct labour hours 666.67 673.3 740 806.67

Direct labour cost per hour 10.23 10.23 10.23 10.23

Total direct labour cost (RM) 6820.03 6887.86 7570.2 8252.23 29530.32

Calculation for Total direct labour cost (RM)

Technician

Q1 = 333.33 x 10 Q2 = 336.67 x 10

= 3333.3 = 3366.7


7/18

Q3 = 370 x 10 Q4 = 403.33 x 10

= 3700 = 4033.3

Total direct labour cost (Technician)

= Q1 + Q2 + Q3 + Q4

= 3333.3 + 336.67 + 3700 + 4033.3

= RM 14433.30

Calculation for Total direct labour cost (RM)

Carpenter

Q1 = 666.67 x 10 Q2 = 673.33 x 10

= 6666.7 = 6733.3

Q3 = 740 x 10 Q4 = 806.67 x 10

= 7400 = 8066.7

Total direct labour cost (Carpenter)


8/18

= Q1 + Q2 + Q3 + Q4

= 6666.7 + 6733.3 + 7400 + 8066.7

= RM 28866.70

5. Factory Overhead Budget for each four quarters of 2010

Distinguish and split between fixed and variable overhead cost

Calculate OAR using direct labour hour

MADS SDN BHD

Factory Overhead Budget


Q1 Q2 Q3 Q4 Year

Variable cost: 2000 2020 2220 2420

Electricity bill (RM 3000) 13 333.33 13 466.67 14 800 16 133.33

Water bill (RM 1000) 4 444.44 4 488.89 4 933.33 5 377.78

Telephone bill (RM 500) 2 222.22 2 244.44 2 466.67 2 688.89

Total Variable Cost (RM) 19 999.99 20 200 22 200 24 200 86 599.99

Fixed Cost:

Promotion (RM 2000) 6000 6000 6000 6000

Lorry selling and distribution (RM 2000) 6000 6000 6000 6000

Salaries (model) (RM 6000) 18 000 18 000 18 000 18 000

Total Fixed Cost (RM) 30 000 30 000 30 000 30 000 120 000

Total Factory Overhead (RM) 49 999.99 50 200 52 200 54 200 206 599.99

Total Direct Labour Hours 1000 1010 1110 1210 4 330

Factory overhead rate per direct labour hours

(OAR)

47.71

Factory overhead rate per direct labour hours (OAR)

OAR = Total Factory Overhead


9/18

Total Direct Labour Hours

= 206 599.99 / 4330

= 47.71

Variable Cost:

Calculation for electricity bill

Q1 = 3000/ 450 x 2000 Q2 = 3000/ 450 x 2020

= 13 333.33 = 13 466.67

Q3 = 3000/ 450 x 2220 Q4 = 3000/ 450 x 2420

= 14800 = 16 133.33

Calculation for water bill

Q1 = 1000/ 450 x 2000 Q2 = 1000/ 450 x 2020

= 4 444.44 = 4 488.89

Q3 = 1000/ 450 x 2220 Q4 = 1000/ 450 x 2420


10/18

= 4 933.33 = 5 377.78

Calculation for telephone bill

Q1 = 500/ 450 x 2000 Q2 = 500/ 450 x 2020

= 2 222.22 = 2 244.44

Q3 = 500/ 450 x 2220 Q4 = 500/ 450 x 2420

= 2 466.67 = 2 688.89

Total Variable Cost

For Q1 = electricity bill + water bill + telephone bill

= 13 333.33 + 4 444.44 + 2 222.22

= RM 19 999.99


11/18


12/18

= 6 000 = 6 000

Q3 = 2000 x 3 Q4 = 2000 x 3

= 6 000 = 6 000

Calculation for lorry selling and distribution

Q1 = 2000 x 3 Q2 = 2000 x 3

= 6 000 = 6 000

Q3 = 2000 x 3 Q4 = 2000 x 3

= 6 000 = 6 000

Calculation for lorry salaries (model)

Q1 = 6000 x 3 Q2 = 6000 x 3

= 18 000 = 18 000

Q3 = 6000 x 3 Q4 = 6000 x 3

= 18 000 = 18 000


13/18

Total Fixed Cost

For Q1 = promotion + lorry selling + salaries

= 6000 + 6000 + 18 000

= RM 30 000


= 6000 + 6000 + 18 000

= RM 30 000


= 6000 + 6000 + 18 000

= RM 30 000


= 6000 + 6000 + 18 000

= RM 30 000


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Total Variable Cost (RM)

= Q1 + Q2 + Q3 + Q4

= 30 000 + 30 000 + 30 000 + 30 000

= RM 120 000

Calculation for Factory Overhead

Total Variable Cost + Total Fixed Cost

For Q1 = 19 999.99 + 30 000 For Q2 = 20 200 + 30 000

= 49 999.99 = 50 200

For Q3 = 22 200 + 30 000 For Q4 = 24 200 + 30 000

= 52 200 = 54 200

Calculation for Total Direct Labour Hours

= Total req. DLH (technician) + Total req. DLH (carpenter)

Q1 = 333.33 + 666.67 Q2 = 336.67 + 673.33

= 1000 = 1010

Q3 = 370 + 740 Q4 = 403.33 + 806.67

= 1110 = 1210

Total Direct Labour Hours

= Q1 + Q2 + Q3 + Q4


15/18

= 1000 + 1010 + 1110 + 1210

= 4330

6. Closing Stock Budget as at December 31, 2010

Prepare a budget for Direct Material Closing Stock and Finished Goods Closing

Stock

MADS SDN BHD

Closing Stock Budget


Units Unit Cost (RM) Total Value (RM)

Direct materials:

Pendaflour lamp 1572 14.50 22 794

Plastic board 524 50 26 200

Total DM stock 48 994

Finished Goods:

Stuminidio 260

Total Closing Stock

Units Cost (RM) Unit/Hour Value (RM)

Pendaflour lamp 14.50 6 87

Plastic board 50 2 100

Technician 10 10/60 1.67

Carpenter 10 20/60 3.33

Factory Overhead 1/2


16/18

Unit Cost 192

Calculation for Total Value

Total value = Units x Units Cost (RM)

Pendaflour lamp Plastic board

Total value = 1572 x 14.50 Total value = 524 x 50

= RM 22794 = 26200

Total Direct Material Stock = total value pendaflour lamp + total value plastic board

= RM 22794 + RM 26200

= RM 48994

Finished Goods:

Calculation total value for Stuminidio

Total value = Units x Units Cost (RM)


17/18

= 260 x 192

= RM 49920

Total Closing Stock = Total DM Stock + total value for Stuminidio

= RM 48994 + RM 49920

= RM 98914

7. Cost of Goods Sold Budget as at December 31, 2010

Since this is a new venture, there is no opening stock

MADS SDN BHD

Cost of Goods Sold Budget



18/18

RM RM

Direct Material Used 1 668 414

Direct Labour 43 300

Factory Overhead 206 599.97

Total Production Cost 1 918 313.97

Add: Beginning FG 0Less: Ending FG (49 920) (49 920)

Cost of Goods Sold 1 868 393.97

bmt assigment 1(uzair)

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