ACCT1003 Managerial Accounting I

Question 1: Operating Budget

Use the template on the next page to make your calculations then write your totals in the “Calculate” location below.

Aaron’s Avionics has the contract to provide a subassembly to Bombardier for their C Series aeroplane.  They plan to ramp up production in the first quarter of 2018 to reach a steady state of 110 parts per month.  They will sell 500 parts in January, rising to 600 in February, 700 in March, and finally 800 per month from April forward.  They charge Bombardier $180 per part.  Their production plan calls for 10% of the month’s sales to be available at the beginning of the month (the end of the previous month).  Each part requires 1.5 Kg of aluminum at a cost of $2.20 per kilogram.  They have an operating practice of holding 20% of a month’s requirement in inventory at the beginning of the month.  It takes eight hours of direct labour to make one part.  They have 15 staff in December and can hire & train only five staff per month (which they will every month starting in January).  Manufacturing staff are paid $18 per hour with a time-and-a-half overtime premium.  Staff work 160 hours per month with any further hours required at the overtime rate.


A.Revenue for Q1                    ___________________________________

B.Parts inventory at the end of Q1            ___________________________________

C.Production for Q1                    ___________________________________

D.Kilograms of aluminum used in Q1            ___________________________________

E.Aluminum materials inventory at the end of Q1    ___________________________________

F.Aluminum purchase cost for Q1            ___________________________________

G.Direct Labour Hours Required            ___________________________________

H.Direct labour cost for regular time            ___________________________________

I.Overtime cost for Q1                    ___________________________________

Total Labour cost for Q1



Pressed for time?


Hire a skilled expert and get original paper for 3+ hours now

More Similar Essays

White’s The Clash of Economic Ideas

Pick one of the topics to write a 6 page paper on. Please use citations and quotes mentioned in the topic you chose (An Outline of the history of Economic Thought by Screpanti or The Clash of Economic Ideas by White). 1. Screpanti/Zamagni in chapter 12 provide a host...

read more


1. Wright a summary of content and methods used in the chronological development of metaphysics. 2. Choose a philosopher from the ancient, medieval, or modern period then discuss and compare his distinct metaphysical teaching and method with Martin Heidegger (a...

read more

EXAM 4 History

5 short answer questions 2 essay questions. This exam covers Chapters 13-16 in the textbook.George Brown Tindall and David Emory Shi, America: A Narrative History (11th Edition, Volume 1) ISBN # 978-0-393-66893-3Joshua D. Rothman, Reforming America, 1815-1860. ISBN #...

read more