管理会计讲义chap009.pptVIP

9-* * The third step is to compute the manufacturing overhead cost per unit. Royal uses adsorption costing for valuing inventory. We apply overhead on the basis of direct labor hours, so we multiply 0.05 times the predetermined rate of $49.70, which yields an overhead cost per unit of $2.49. Our total unit cost is $4.99. The predetermined overhead rate was calculated when we prepared the manufacturing overhead budget.Next, we will calculate the cost of our ending finished goods inventory. 9-* * The fourth step is to calculate the value of the ending finished goods inventory. We estimate there will be 5,000 units in ending inventory and at a per unit cost of $4.99, we have a total cost of $24,950. The finished goods inventory will appear on our budgeted balance sheet. The ending inventory in units is derived from the production budget. 9-* * Learning objective number 7 is to prepare a selling and administrative expense budget. 9-* * Royal has a variable and fixed component to its selling and administrative (S A) expenses. The company estimates variable selling and administrative expenses at $0.50 per unit sold. Fixed selling and administrative expenses are estimated at $70,000 per month. Of this amount, $10,000 are noncash expenses, primarily depreciation.The selling and administrative expense budget will be prepared in a manner similar to our overhead budget. This budget lists the budgeted expenses for areas other than manufacturing and it is typically a compilation of many smaller individual budgets. 9-* * The first step in preparing this budget is to multiply the variable selling and administrative (S A) rate by the number of units sold. In April, we expect to sell 20,000 units and apply the variable rate of $0.50 per unit.The second step is to add in the fixed S A expenses to arrive at total S A expenses. To our variable expenses, we add our estimated $70,000 fixed selling and administrative expenses to get total selling and administrative expenses of