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Comfort Manufactoring
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Budget Information Sheet- Teddy Bears/ Pillows
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For the Year Ending 31 December 2014Sales CycleProductionCycle
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Teddy BearsPillowsTeddy BearsPillowsTeddy BearsPilliows
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Budget Sales Price, 2014$35.00 $30.00 Jan0.10.025Jan0.150.05
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Feb0.150.025Feb0.150.05
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Budgeted Annual Sales, Units243,000610,000Mar0.0750.025Mar0.0250.1
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Apr0.050.075Apr0.050.15
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Budgeted Annual Production, Units240,000600,000May0.0250.125May0.050.15
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June0.0250.15June0.0250.15
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Product Specifications Per Unit:July0.0250.15July0.020.1
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Brown Teddy Bears:Aug0.050.15Aug0.0450.1
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Direct Materials:Sept0.10.15Sept0.0780.05
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Stuffing (ounces)8Oct0.150.075Oct0.1670.05
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Bear Bodies1Nov0.10.025Nov0.140.025
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Dec0.150.025Dec0.10.025
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Direct Labor(Minutes): Total:11 Total:11
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Stuffing 1
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Finsihing1.5
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Firm Pillows:
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Direct Materials:
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Stuffing (ounces)16
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Pillow Shells 1
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Direct Labor(Minutes):
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Stuffing1
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Sewing1
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Inventory, Units
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Dirtect Material:Beg Inv (Jan)End Inv (Dec)Minimum
Bear Stuffing Beg Inv
Pillow Beg Inv
Bear Stuffing End Inv
Pillow Stuffing End Inv
Bear Stuffing Min
Pillow Stuffing Min
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Stuffing(ounces)268,80084,80016,192134400134400424004240080968096
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Bear Bodies3,60060024
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Pillow Shells15,0005,0001,000
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Finished Goods:
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Teddy Bears3,600600
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Pillows 15,0005,000
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Teddy Bear Cost Assumptions:20142015
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Stuffing (per ounce)$0.20 $0.16
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Teddy Bears$4.50 $4.75
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Stuffing Labor, per hour$9.00 $10.00
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Finishing Labor, per hour$8.00 $9.00
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Per unit cost of Brown Teddy Bears:$7.00 $8.96
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Pillow Cost Assumptions:20142015
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Stuffing (per ounce)$0.20 $0.16
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Pillow Shells$1.00 $0.90
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Stuffing Labor, per hour$9.00 $10.00
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Sewing Labor, per hour$7.25 $7.50
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Per unit cost of Firm Pillows:$5.00 $5.79
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Non-Manufacturing Costs:VariableFixed
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R&D, Product Design0.025$140,000
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Marketing0.05600,000
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Distribution0.02200,000
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Customer Service0.015100,000
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Administrative0.014250,000
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Totals0.124$1,290,000
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Fixed Manufacturing Overhead:TotalAllocation, per DMLH
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Depreciation$200,000$6.67
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Property Taxes150,0005
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Property Insurance120,0004
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Plant Supervision90,0003
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Miscellaneous1500005
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Total Fixed Manufacturing Overhead$710,000$23.67
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Variable Manufacturing Overhead:TotalAllocation, per DMLH
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Supplies$260,000 $8.67
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Indirect Labor60,0002
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Power & Energy340,00011.33
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Maintenance310,00010.33
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Miscellaneous150,0005
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Total Vaiable Manufacturing Overheard$1,120,000$37.33
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Inventory Cost-Flow Method:
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Number of Full-time production employees: 12
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No overtime hours that are allowed; 40 hours a week
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Emloyess are allowed to two weeks' vacation; 50 weeks a year
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All our labor and materials cost are on annual contracts
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No WIP inventory allowed
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Production peak varies to sales peak