Information Systems for Managment Accounting Essay

Information Systems for Managment Accounting - Essay Example Budgeted sales in unit $2200 Add desired ending inventory $0 = total needs $2200 Less beginning inventory $0 Required Production $ 2200 The production budget is calculated on March 2009 Budgeted sales in unit $1400 Add desired ending inventory $0 = total needs $1400 Less beginning inventory $0 Required Production $ 1400 The production budget is calculated on April 2009 Budgeted sales in unit $2500 Add desired ending inventory $0 = total needs $2500 Less beginning inventory $ 0 Required Production $ 2500 Sales Budget for Hope Ltd. Material Purchase Budget for the Hope Limited Units material cost per unit material purchase budget 2008 May 1,100 40 44000 June 1,300 40 52000 July 1,500 40 60000 August 1,700 40 68000 September 1,900 40 76000 October 2,100 40 84000 November 2,300 40 92000 December 2,500 40 100000 2009 January 2,300 40 92000 February 2,200 40 88000 March 1,400 40 56000 April 2,500 40 100000 Total for year 22,800 40 912000 Direct Labor Budget for the Hope Ltd. Units 2008 labor hour per unit total labor hour Direct labor cost Direct Labor Budgets May 1,100 2 2200 8 17600 June 1,300 2 2600 8 20800 July 1,500 2 3000 8 24000 August 1,700 2 3400 8 27200 September 1,900 2 3800 8 30400 October 2,100 2 4200 8 33600 November 2,300 2 4600 8 36800 December 2,500 2 5000 8 40000 2 8 2009 2 8 January 2,300 2 4600 8 36800 February 2,200 2 4400 8 35200 March 1,400 2 2800 8 22400 April 2,500 2 5000 8 40000 Total for year 22,800 2 45600 8 364800 Production Overhead Total Fixed Production Overhead 91200 Total Fixed Admin. And Distribution Overhead 36000 Total Fixed Overhead 127200 Variable Overhead 5 per labour hour(5) (45600) 228000 Total... Description: the overall company efficiency was increased later due to the credit sale for two months that causes loss. Therefore, the company must decrease its credit sale. On the other hand its distribution and administrative cost is also huge which is also required to minimize. Over all company goes in profit with time but its efficiency can be increased by lowering its cost.