Please explain through showing formula how forecasted amounts are reached You ha
ID: 443997 • Letter: P
Question
Please explain through showing formula how forecasted amounts are reached
You have reached the end of the first year of selling Product Y. Below are the monthly sales figures, by unit, from the year (20X1).
By Month (20X1)
Number of units (Product X)
January
1,020
February
1,075
March
1,150
April
1,300
May
1,600
June
2,000
July
2,800
August
4,000
September
5,500
October
7,200
November
10,000
December
15,000
Total
52,645
Current cost structure for Product Y is as follows:
Direct Material - $7 per unit
Direct Labor - $20 per hour (it takes 1 hour to build one unit)
Overhead - $1500 per 5000 units produced
Activity:
Plot the current units of Product Y for 20X1 on a graph. Determine the appropriate mathematical model to forecast future trend, based on the growth rate and expectations, in monthly unit sales expected. Explain your forecast. Draw a timeline for production of Product Y by applying a forecast for Manufacturing Requirements Planning (MRP). Determine the total cost of goods manufactured in 20X1 and calculate the variance from your budget (forecast x cost of the 3 elements of manufacturing) – what is the different between your budgeted cost of goods manufactured and the actual cost of goods manufactured (use the new costs for Product Y).
.
By Month (20X1)
Number of units (Product X)
January
1,020
February
1,075
March
1,150
April
1,300
May
1,600
June
2,000
July
2,800
August
4,000
September
5,500
October
7,200
November
10,000
December
15,000
Total
52,645
Explanation / Answer
Please explain through showing formula how forecasted amounts are reached You ha