Sigma Inc. manufactures bird houses and bird feeders. The Sales Department of Sigma Inc. has submitted the following forecast of units to be sold by quarter for the year 2022 and for the first two quarters of 2023.
2022 2023
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Quarter 1 Quarter 2
Budgeted Sales, in units:
Bird house 2,200 1,750 2,100 2,350 1,950 1,800
Bird feeder 4,300 3,900 4,550 4,650 4,300 3,000
Materials required are wood (ft.) and steel plastic (lbs.).
Required:
1- Provide, in an excel file, all the necessary data that you need in order to answer the questions. You need to complete the following excel sheet.
Data necessary to prepare budgets
• Setting price per one *Brd house' $52.00 per unt
• prioe per one *Brd feeder' S75.00 per unt Accounts receivable, December 31, 2021
• Sales collected in the quarter sales are made
• Saks coiected in the quarter after sales are made of the budgeted unt sales of the next quarter units units
• Desired ending finished goods imentory is ?
• Finished goods inventory, December 31, 2021: Brd house ?
• Finished goods inventory, December 31, 2021: Brd feeder ?
2- Prepare the following budgets, by quarter and in total, for 2022:
- Sales budget
- A schedule of expected cash collections from sales
- Production budget
- Prepare direct materials budgets
- A schedule of expected cash disbursement for materials
- Direct labor budget
- Manufacturing overhead budget
- Ending finished goods inventory budget
- Selling and administrative budget
- Cash budget
- Budgeted income statement (traditional format)
- Budgeted statement of financial position
3- Compute the following variances for “Bird feeder”:
a. Materials price and quantity variances.
b. Labor rate and efficiency variances.
4- Pick out the two most significant variances that you computed in (3) above. Explain to managers possible causes of these variances.