Act 202
Individual Project Outline
Fall’20
You have a fuchka shop named “What’s da Fuska” in operation at Ramna park since 2015.
This is a sole proprietorship business.
Information of your business in 2018 are as follows:
Selling price was BDT 50 per plate
Average Sales volume was 250 plates per day
Direct material costs 20% of selling price
Variable MOH BDT 2
One time disposable plate costs BDT 2
Paper towel costs 50 paisa
Annual sales growth was 10% since inception.
Price increased by 20% every year
Monthly average fixed cost related to the stall was:
Police Commission = BDT 5,000/month
Rent
= BDT 15,000/month
Salary of support staff= BDT 7,000/month
Utility
= BDT 2,500/month
Depreciation
= BDT 1,000/month
Hint: 20% of some of these above costs are related to production and the rest is related to
sales.
During normal situation, the following growth has been observed:
Raw material cost increases by 10% every year
MOH cost increases by 12% every year
Selling and administration cost increases by 4% every year
Make
a
Master
Budget
(Sales/Production/material/Labor/MOH/Selling
&
Administrative/Cash budget) for the year 2019 (Pre CORONA virus year ) and another
Master Budget for the year 2020 (CORONA virus year). You need to calculate your own
production cost (raw material cost + labor cost + MOH cost) and opening/closing inventory.
Show details/breakdown of your calculation.
Give reasons of any changes of you assumptions between 2019 and 2020 Master Budget
i.e., pre COVID 19 situation and during COVID 19 situation. Also keep in mind that due to
COVID 19 situation, the growth rate may be different than what has been observed during
the normal scenario (mentioned above).
Note:
1. You must NOT go outside for data collection. You have to do the assignment based
on your judgement and using the concept from books, slides, google, internet etc.
2. Assignment should be done in MS Excel or MS Word. No hand written.
3. No word limit