Hired as the new budget controller for Banderhouse Inc

      You have been hired as the new budget controller for Banderhouse Inc., a manufacturing firm that makes insulated pet houses from injected molded plastic. The firm has been in business for two years and currently makes one product, the Deluxe house. You are tasked with creating a master budget for the first quarter. It will consist of the operating budget and the financial budget with the following components: Sales budget Production budget Direct materials purchase budget Direct labor budget Overhead budget Selling and administrative expenses budget Ending finished goods inventory budget Cost of goods sold budget Budgeted income statement Cash budget In a 400-800-word document, present your master budget to the company executives. It should include a title page with your name, company name, course name and submission date. All budgets should be in table format. An explanatory narrative should be included to describe computations made in each budget. Each narrative should be placed next to its corresponding budget table. Pertinent Information Unit selling price $235 Projected sales in units for the first quarter Month Sales January 50,000 February 60,000 March 70,000 April 70,000 May 70,000 Direct labor usage data: Direct labor per unit direct labor per hour 3 hours $12.50 Direct material usage data: Direct Material Usage Per Unit Unit Cost Plastic pellets 10 lbs $7 Insulation 5 lbs $3 Inventory policy requires that there are sufficient materials on hand at the beginning of the month to produce 50% of that months estimated sales. This was the case on January 1. Monthly overhead data: Fixed Cost Variable Cost Power $1.00 Supplies .40 Maintenance 25,000 .50 Supervision 16,000 Depreciation 100,000 Taxes 15,000 Other 10,000 1.40 Monthly overhead is estimated using a flexible budget formula and is measured in direct labor hours. Monthly selling and administrative data: Fixed Cost Variable Cost Salaries $20,000 Depreciation 10,000 Shipping 1.00 Other 10,000 .50 Monthly selling and administrative expenses are estimated using a flexible budget formula and are measured in units sold. Finished goods inventory: Month Units Unit Cost January 1 40,000 $166 Desired ending inventory for each month is 80 percent of next month's sales. All sales and purchases are for cash. The cash balance on January 1 was $500,000. Banderhouse Inc. requires a minimum month cash balance of $1000. If there is a cash shortage, money is borrowed at a rate of 10 percent and is repaid at the end of the quarter along with the interest due. Cash borrowed at the end of the quarter is repaid at the end of the following quarter. On January 1, there were no loans.