Sam Beach Static Budget Information Assignment
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
Sam Beach Static Budget Information Assignment
Sam Beach is a small beach shop on the boardwalk in California. They sell several types of “beachy” clothing – bathing
suits, coverups, etc. They make everything they sell. In the past, Sam Beach has catered to women only and sold only
clothes for women. However, they realize that there is also a market for “beachy” clothes for men – so they are trying out a
new item for the coming summer: men’s board shorts.
These will be offered in a variety of colors and patterns. In putting their board shorts budget together, Sam Beach must
consider several things: how much they should charge for the shorts, the quality of the fabric to be used, the experience-
level of employees (to sew the shorts) to be hired, etc. Because the board shorts are a new product, the owner of Sam Beach
is very interested in the budget vs. actual results for June.
Below is some important budget and actual information related to the board shorts that Sam Beach sold during the month
of June: For simplicity, assume Sam Beach sells all the board shorts produced for the month (so no beginning or ending
inventory of finished board shorts). Sam Beach does maintain an inventory of direct materials (yards of fabric).
The company started June with 26 yards and had target ending inventory of 60 yards. For questions below, you will be
using the static budget information to answer questions about budgets for direct materials and labor (Chapter 22).
What is the materials purchase budget for June in units (yards of fabric)?
What is the direct labor costs budget for June in dollars For questions below, you will be calculating different variances (Chapter 23).
What is the selling-price variance (variance caused by the actual selling price being different than the budgeted amount) ?
What is the cost variance for direct labor (variance caused by the difference in labor rate from budget)?
What is the efficiency variance for direct materials (variance in amount of materials used vs. what was allowed)
RUBRIC
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