You will need to submit a budget report to the CEO, including an explanation of...
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Accounting
You will need to submit a budget report to the CEO, including an explanation of the utility of master budgets. You will also submit a variance report that shows how the company is performing versus budgeted amounts. Use the following data.
Amount of Goods Sold Per Quarter:
Q1
Q2
Q3
Q4
Chairs sold per quarter
1150
1200
1250
1400
Tables sold per quarter
900
950
1000
1150
Dressers sold per quarter
650
700
750
900
Target Sales Goal Per Quarter:
Goods
Quantity
Chairs
1300
Tables
1100
Dressers
800
Q1 beginning inventory:
Goods
Quantity
Chairs
120
Tables
90
Dressers
70
Assume that the material and labor costs from Part 1 are standards. Compare those standard costs to the actual amounts listed below. These are the actual amounts used for the entire fiscal year:
Actual amount of wood purchased and used
46,120 bd. ft.
Actual cost of wood purchased and used
$80,028
Actual amount of direct labor hours
17,900
Actual cost of direct labor
$275,550
Within your analysis, make sure to include the following:
Create variance reports for Q1, Q2, Q3, and Q4 against the Quarterly Budget.
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