Answer: (a) Sales forecast $338,400, Production schedule $1,360 (b) Budgeted variable manufacturing cost per case $14, (c ) Total Manufacturing Cost $239,760
Explanation:
Sales forecast
$
Budgeted sales. 1,410
×Selling price per case 240
----------------
Budgeted sales. 338,400
Production schedule
$
Budgeted sales. 1,410
Targeted ending inventory 100
----------------
Cases budgeted to be available
For sale. 1,510
Less: Beginning inventory. 150
---------------
Planned production in unit 1,360
----------------
Manufacturing Cost budget
$
Direct materials ($8 × 1,410) 11,280
Direct Labour( $10 × 2) 20
Variable manufacturing overhead ($6 × 1,410) 8,460
----------------
Total variable manufacturing cost 19,760
Add: Fixed manufacturing overhead. 220,000
------------------
Total manufacturing cost. 239,760
-------------------
Variable manufacturing cost per case
= Total variable manufacturing cost / projected sales in units
= 19,760/ 1,410
= $14
Workings
Cases budgeted to be available for sales = Budgeted sales + Target ending inventory
= 1,410 + 100
= 1,510
