Week 1 Exercises Chapter 1 Exercise Ch1 Level 3: Job Analysi

1week 1 Exercises Chapter 1exercise Ch1 Level 3 A Job Analysis

1 WEEK # 1 - EXERCISES CHAPTER # 1 Exercise Ch1: Level 3-A- Job Analysis. You have learned a tremendous amount about creating the first year’s budget for the original option of the new TZEdge shoe. Now, you need to create quarterly budgets and a summary for the textured leather option using $74.07 per shoe as the cost of materials and $5.32 per shoe as the cost of labor. Unlike with the original option, only two pricing alternatives are being considered for the textured leather option. Table 1.7 shows the two pricing alternatives, as well as the expected sales volume in each quarter for these alternatives.

Overhead is calculated at 29% of the direct labor costs, and the selling expense is assumed to be $5.10 per shoe. Complete the following: 1. Create a new workbook named 1-5-Texture-Budget-Your-Name.xlsx, and then save the file. 2. Using the finished first quarter budget worksheet for the original option as a model (see Figure 1.24) Create the first quarter budget worksheet for the textured leather option, as follows: a. In cells A1:B2, enter the necessary inputs for the number of shoes per pair and the % of labor for overhead. b. In cell C1, enter the title TZEdge 1st Quarter Budget Textured Leather Option in bold and italic. Merge and center this title across cells C1:D1, and wrap the text so this title appears over 2 lines. Apply a gray shaded background to the title cells. c. In rows 4 through 6, enter the first quarter sales volume and price data, with the column headings Low Priced and High Priced in cells C4 and D4, respectively. Use similar formatting as shown in Figure 1.24. 2 WEEK # 1 - EXERCISES CHAPTER # 1 d. In cells A7:A18, enter the labels for each cost component category from the original option (see Figure 1.24), and then in cells B7:D7, enter the headings Cost per Shoe, Low Priced Total, and High Priced Total. e. In cells B11, B12, and B16, enter the costs per shoe for Materials, Labor, and Selling Expense, respectively. f. In cell B13, enter a formula to calculate the Overhead cost. g. In columns C and D, enter the necessary formulas to determine revenue, cost of goods sold, selling expense, and projected earnings for each pricing alternative. (Keep in mind that projected earnings is defined as revenue minus cost of goods sold minus selling expense.) Be sure to use the appropriate relative, absolute, and mixed cell references, so that the formulas can be copied wherever needed and will automatically update if data inputs are modified. Format the values and calculated results on your worksheet in a similar manner to those in Figure 1.24. h. Refer to Figure 1.24 and apply similar borders to the appropriate cells on your worksheet. i. Rename the Sheet1 worksheet tab as 1stQTR. 3. With the 1stQTR worksheet complete, use an appropriate method to create similar worksheets for the other three quarters. Name these worksheets 2ndQTR, 3rdQTR, and 4thQTR. Modify values and labels as necessary on these three worksheets. 4. Create a final comparison sheet named Summary to display each of the budget components summarized by year for each pricing alternative. For the worksheet title in cells C1:D1, enter TZEdge Annual Budget Textured Leather Option. 5. In cell A20, insert text to indicate which pricing alternative you would recommend and why. Highlight this text with a blue background. 6. Add your name at the end of the exercise and date 7. Save and close the 1-5-Texture-Budget-Your-Name.xlsx workbook. 3 WEEK # 1 - EXERCISES CHAPTER # 1 Note: In the four quarters use absolute reference to B1 and Mix reference to C5 and D5 In the summary link to the previous tabs The solution should be similar to: 1stQTR 2ndQTR 4 WEEK # 1 - EXERCISES CHAPTER # rdQTR 4thQTR 5 WEEK # 1 - EXERCISES CHAPTER # 1 Summary

Paper For Above instruction

The task at hand involves developing a comprehensive quarterly budget for the textured leather option of the TZEdge shoe, building upon prior knowledge of creating an annual budget for the original model. This financial planning process requires meticulous attention to detail, including setting up the Excel workbook with appropriate sheets, formulas, and formatting to ensure accuracy and clarity in financial projections.

To initiate the project, one must first create a new Excel workbook titled "1-5-Texture-Budget-Your-Name.xlsx" to organize all relevant data and calculations systematically. The first worksheet, named "1stQTR," serves as the foundation for quarterly budgeting. The setup begins with input cells for the number of shoes per pair and the percentage of labor allocated to overhead costs, located in cells A1 and B2, respectively. These inputs are crucial, as they influence subsequent cost calculations and margins.

The worksheet header should prominently feature the title "TZEdge 1st Quarter Budget Textured Leather Option," formatted in bold and italics, merged across cells C1:D1, with a gray shaded background for emphasis. The title should be wrapped across two lines to improve readability. Following this, rows 4 through 6 are designated for sales volume and pricing data, with columns for low-priced and high-priced alternatives, ensuring clear comparison.

Next, in rows 7 through 18, various cost components relevant to the production of shoes are listed, including materials, labor, overhead, and selling expenses. The costs per shoe are entered in specific cells (e.g., B11, B12, B16), with formulas established to calculate overhead based on the labor costs, specifically B13 = B12 * 29%. Revenue, cost of goods sold, selling expenses, and profit projections are then computed for both pricing scenarios, utilizing formulas that reference input cells with appropriate cell referencing methods (relative, absolute, mixed).

It is essential to apply proper formatting and borders to enhance the worksheet's readability and professionalism, mirroring the sample figure provided (Figure 1.24). After completing the first quarter worksheet, copies of this structure should be made to represent subsequent quarters: 2ndQTR, 3rdQTR, and 4thQTR, adjusting expected sales volumes and relevant data as needed for each period.

The final step involves creating a summary worksheet titled "TZEdge Annual Budget Textured Leather Option," which consolidates the budget data across all four quarters. This summary should provide a clear comparison of sales, costs, profits, and other key metrics for each pricing alternative over the year. Additionally, an area must be designated to insert a recommendation on which pricing alternative is preferable, highlighted with a blue background, along with the preparer's name and date for accountability and record-keeping.

This task emphasizes strong spreadsheet design principles, proper formula use, and clear presentation to support sound financial decision-making. The approach ensures that all data references dynamically update when input values are modified, providing a reliable and useful budget analysis tool for the textured leather shoe option.

References

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