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    Answer Case Study - Q1 - Operating Budget

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    Nur Suziliyana
    The document contains sales, production, direct materials, direct labor, and manufacturing overhead budgets for Mutiara Sdn Bhd for July and August 2020. It shows expected sales revenue of RM995,000 for July and RM1,194,000 for August. Production is budgeted at 61,000 units for July and 66,000 units for August. Direct materials costs are budgeted at RM122,500 for July and RM134,500 for August. Direct labor costs are RM533,750 for July and RM577,500 for August. Total manufacturing overhead is RM209,200 for July and RM224,200 for August.

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    Answer Case Study - Q1 - Operating Budget

    Uploaded by

    Nur Suziliyana
    47 views4 pages
    The document contains sales, production, direct materials, direct labor, and manufacturing overhead budgets for Mutiara Sdn Bhd for July and August 2020. It shows expected sales revenue of RM995,000 for July and RM1,194,000 for August. Production is budgeted at 61,000 units for July and 66,000 units for August. Direct materials costs are budgeted at RM122,500 for July and RM134,500 for August. Direct labor costs are RM533,750 for July and RM577,500 for August. Total manufacturing overhead is RM209,200 for July and RM224,200 for August.

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    Answer Case Study_Q1 - Operating Budget

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    The document contains sales, production, direct materials, direct labor, and manufacturing overhead budgets for Mutiara Sdn Bhd for July and August 2020. It shows expected sales revenue of RM995,000 for July and RM1,194,000 for August. Production is budgeted at 61,000 units for July and 66,000 units for August. Direct materials costs are budgeted at RM122,500 for July and RM134,500 for August. Direct labor costs are RM533,750 for July and RM577,500 for August. Total manufacturing overhead is RM209,200 for July and RM224,200 for August.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    47 views4 pages

    Answer Case Study - Q1 - Operating Budget

    Uploaded by

    Nur Suziliyana
    The document contains sales, production, direct materials, direct labor, and manufacturing overhead budgets for Mutiara Sdn Bhd for July and August 2020. It shows expected sales revenue of RM995,000 for July and RM1,194,000 for August. Production is budgeted at 61,000 units for July and 66,000 units for August. Direct materials costs are budgeted at RM122,500 for July and RM134,500 for August. Direct labor costs are RM533,750 for July and RM577,500 for August. Total manufacturing overhead is RM209,200 for July and RM224,200 for August.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 4

    Mutiara Sdn Bhd

    Sales Budget
    For 2 months ended 31 August 2020
    Month
    July Aug
    Expected unit sales 50000 60000
    (X) Unit selling price 19.90 19.90
    Total sales (RM) RM995,000 RM1,194,000

    Mutiara Sdn Bhd


    Production Budget
    For 2 months ended 31 August 2020
    Month
    July Aug
    Expected unit sales 50,000 60,000
    (+) Ending finished goods units 36,000 42,000
    Total required units 86,000 102,000
    (-) Beginning finished goods units 25,000 36,000
    Required production units 61,000 66,000

    Mutiara Sdn Bhd


    Direct Materials Budget
    For 2 months ended 31 August 2020
    Month
    July Aug
    Units to be produced 61,000 66,000
    (X) Direct materials per unit 0.4 0.4
    Total kg needed for production 24400 26400
    (+) Ending direct materials (kg) 6100 6600
    Total materials required 30500 33000
    (-) Beginning direct materials (kg) 6000 6100
    Direct materials purchases 24500 26900
    (X) Cost per kg 5 5
    Total cost of direct materials purchases (RM) RM122,500 RM134,500

    Mutiara Sdn Bhd


    Direct Labor Budget
    For 2 months ended 31 August 2020
    Month
    July Aug
    Units to be produced 61,000 66,000
    (X) Direct labor time (hours) per unit 2.50 2.50
    Total required direct labor hours 152500 165000
    (X) Direct labor cost per hour 3.50 3.50
    Total direct labor cost (RM) RM533,750 RM577,500

    Mutiara Sdn Bhd


    Manufacturing Overhead Budget
    For 2 months ended 31 August 2020
    Month
    July Aug
    Variable Manufacturing Overhead
    Direct Labor Hours 152,500 165,000
    x Variable overhead rate per hour 1.2 1.2
    Variable Manufacturing Overhead 183,000 198,000

    Fixed Manufacturing Overhead:


    Rental 4,500 4,500
    Insurance 1,200 1,200
    Depreciation 2,000 2,000
    Supervisor’s Salary 5,000 5,000
    Manager’s Salary 10,500 10,500
    Maintenance 3,000 3,000
    Total Fixed Manufacturing Overhead 26,200 26,200
    Total Manufacturing Overhead (RM) 209,200 224,200
    20

    Total
    110000
    19.90
    RM2,189,000

    20

    Total Sept
    110,000 70,000
    42,000
    152,000
    25,000
    127,000

    20

    Total
    127,000
    0.4
    50800
    6600
    57400
    6000
    51400
    5
    RM257,000

    20

    Total
    127,000
    2.50
    317500
    3.50
    RM1,111,250

    t
    20

    Total
    317,500
    1.2
    381,000

    9,000
    2,400
    4,000
    10,000
    21,000
    6,000
    52,400
    433,400

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