MANAGE

RIAL
ACCOUNT
ING

MASTER BUDGET
BURGER

OF

YOO BRO

Submitted by: Section: 18

Name

ID

Abdullah Al Noman

1510941030

Shahriar parvej

1510459630

Nishat Tasnim

1410886630

Md. Kamrul Islam (17)

1510560630

Ragib Noor Rohan

1510999030

Submitted to:
Bushra Ferdous Khan
School of Business and Economics
North South University

Table of contents:

Topic

Page no.

Executive summary

01

Introduction

02

Cost identification chart

03

Calculation of POHR and Unit cost

03

Sales Budget

04

Production budget

05

Direct material budget

06

Manufacturing overhead

07

Selling and administrative budget

08

Cash Budget

09

Income statement

10

Balance sheet

11

Conclusion

11

Executive summary:

We have chosen the item Burger for making this report. Yoo bro
burger sales only beef burger. We took an interview of a similar
kind of business and got ideas of their business operation, data
about their raw material, per day sales, monthly sales, profit,
there costing type and so on.
This targeted sale is about 3600-5000/5500 units of burger for a
month, as we are able to sell 120-150 burgers per day. Selling
price per burger is 140 taka. And the approximate cost per burger
is not more than 90/92 taka.
Beef steak is collected from retail supplier on 2/3day basis; other
raw materials are collected from the closest market. We use fresh
material for the production. Approximate direct material cost is
55taka per unit.70% of purchase paid in the month purchase and
30% pays by the following month.
Salary of the chef is paid by monthly basis, so there is no direct
labor cost for the business. Other item onion, sauce, mayonnaise,
tomatoes also used for the production but its not possible to
trace them as unit basis. So this item is calculated as the
manufacturing cost for the period. We have used production unit
as our allocation base. The pre-determined overhead rate is
34.74. POHR is getting higher as there all labor cost is indirect.
Yoo bro burger has 3 sales person and salaries are paid by
monthly basis 15000 taka each. A security guard salary is 8000
taka. The variable selling and administration cost for package and
napkin is 3 taka per unit.
We maintain 50000 taka minimum cash balance for a month.
The rent of our restaurant is 50000 taka per month. You bro
burgers fixed assets are tables, chairs, fridge, and the other
machinery item. Our cash balance for the period was 1005850
taka and the total asset are around 3-4 lakh taka.

Yoo bro burgers budgeted net income is 831600 taka for the
period.

Introduction:
Here we have chosen to make Burgers. The name of our business
is Yoo bro Burger. We sell only beef burger. Our shop is located in
purbachal, 300ft. road, Kaji Food Island. Our targeted customer is
young boys and girls who come here often after classes in the
300ft spot. We sell quality food and use all the fresh material in
the production. Our profit is comparatively high from the
competitors.
We tried to make an assumption for our coming half year
production, sales and profit. Here we mention all the material and
the item used for operate our business.

Cost identification:

Product
cost

Cost item

Direct
cost
YES
YES
YES
YES

Burger bun
Beef steak
Lettuce
cheese
onion
Frying oil
Packaging
Napkin
Salary of chef
Salary of
waiter
Tomatoes
Rent

Manufacturing
overhead

Fixed cost

YES
YES
YES

YES
YES

Variable
cost
YES
YES
YES
YES
YES
YES
YES
YES

YES
YES

Period cost

YES
YES
YES

YES
YES

Predetermined overhead rate:

= Total estimated Manufacturing overhead/Total Estimated Allocation Base
= 889600/25600
=34.75
Unit Product Cost:
=Direct material per unit + Moh per unit
= 55+34.75
=89.75

(All labor cost is indirect here)

Sales Budget:
Key Components:
1. Budgeted sales for the half year:
July:

3600 units

August:

4000

September:

4500

October:

4000

November:

5000

December:

4500

2. Selling price is 140 taka per unit.

3. All sales made is cash, there are no on account sales.

Sales budget:
July
3600

Budgeted
Unit sales
Selling
140
Price per
unit
Total
504000
budgeted
sales

August
4000

September
4500

October
4000

November December
5000
4500

Total
25600

140

140

140

140

140

140

560000

630000

560000

700000

630000

3584000

Production Budget:
Key component:
In our business, there is no ending inventory as we sell fresh product everyday .So production
budget will be same as Sales budget.

Production Budget:
Budgeted
Unit sales
Productio
n required

July
3600

August
4000

September
4500

October
4000

November December Total

5000
4500
25600

3600

4000

4500

4000

5000

4500

25600

Direct material budget:

Key components:
1. YOO BRO burger collects beef steak from retail supplier ARONG. Per unit needs 1 beef
steak and the cost per beef steak is 40 taka.
2. Other raw materials used are traced on per unit basis. Costs are given below:
Bun per unit 10 taka,
Cheese cost per unit 4 taka and latus per unit cost is 1 taka
3. We use fresh material for burger. There are no raw material which we use for a long
period. So there will be no ending raw material inventory for the period.
4. Yoo bro burger pay 70% of raw material purchase in the month of purchase and
remaining 30% on the following month.
5. June accounts payable was 50000 taka

Direct material budget:

Required
production
Units
Materials
Bun per unit
cost
Beef stick per
unit cost
Cheese per
unit cost
Latus per unit
cost
Total COST
OF DM PER
UNIT
TOTAL DM
COST

July
3600

August
4000

September
4500

October
4000

November
5000

December
4500

Total
25600

10

10

10

10

10

10

10

40

40

40

40

40

40

40

55

55

55

55

55

55

55

19800
0

220000

247500

220000

275000

247500

140800
0

Cast disbursement for direct material:

July

Augu
st

Septem
ber

Account payable 50000

July purchase
138600 59400
August purchase
154000 66000
September
173250
purchase
October purchase
November
purchase

Octob
er

Novemb
er

Decemb
er

50000
198000
220000
247500

74250
154000

Total

66000
192500

82500

220000
275000

December
purchase
TOTAL CASH
DISBURSMEN
T

188600 213400 239250

228250

258500

173250

173250

255750

1383750

**Account payable for this period is 74250; which is 30% of December

purchases.

Manufacturing overhead Budget:

Key components:
1. Manufacturing overhead is applied to units of product on the basis of budgeted production.
2. Variable manufacturing overhead cost is 16 taka per unit which covers the cost of onion,
tomato, frying oil and mayonnaise.
3. Monthly Rent for the restaurant is 50000 taka, chef monthly salary 20000 taka.
4. Depreciation cost of equipment is 10000 taka.

Manufacturing overhead Budget:

July
Production
required
Variable
MOH rate
Variable
MOH cost
Fixed MOH
Total MOH
cost
Less:
Depreciation
Cash

August

September October

Novembe
r

Decembe
r

Total

3600

4000

4500

4000

5000

4500

25600

16

16

16

16

16

16

16

57600

64000

72000

64000

80000

72000

409600

80000

80000

80000

80000

80000

80000

480000

137600

144000

152000

144000

160000

152000

889600

10000

10000

10000

10000

10000

10000

60000

127600

134000

142000

134000

150000

142000

829600

disbursement
s for MOH

Total MOH
Production
Budget
POHR

889600
25600
34.75

Selling and administrative budget:

Key components:
1. Variable selling and administrative expenses is 3 taka per unit. This cost covers the
packaging, napkin, and other cost.
2. There are 3 waiters. The salary of each waiter is 15000 taka per month.
3. Security guard salary is 8000 taka per month.
4. Depreciation cost is 10000 taka.
Selling and administrative budget:
July
Budgeted unit
Variable expense
per unit
Variable S&A
expense
Fixed S&A exp
Total S&A exp
Less: non cash
exp.
Cash S&A exp

August

Septembe
r

October

Novembe
r

December Total

3600

4000

4500

4000

5000

4500

25600

10800

12000

13500

12000

15000

13500

76800

63000
73800

63000
75000

63000
76500

63000
75000

63000
78000

63000
76500

378000
454800

10000

10000

10000

10000

10000

10000

60000

63800

65000

66500

65000

68000

66500

394800

Cash budget:
Key components:

1. Yoo bro burger maintains minimum 50000 taka cash for month.
2. No borrowing is needed for this period.
3. Beginning cash balance is 30000 taka here.

Cash budget

July
August September October
30000
154000
301600 483850
504000
560000
630000 560000
534000
714000
931600 1043850

Beginning cash balance

Add: Cash collections
Total cash available
Less: Cash
disbursements
Direct materials
188600
213400
239250
Manufacturing
127600
134000
142000
overhead
Selling and
63800
65000
66500
administrative
Total cash
disbursements
380000
412400
447750
Excess (deficiency)
154000
301600
483850
Financing:
Borrowings
Repayments
Interest
Total financing
Ending cash balance
154000
301600
483850
*** Their Last month cash balance is 1005850 taka.

Novembe
r
December Total
616600
840100
30000
700000
630000 3584000
1316600
1470100 3614000

228250

258500

255750 1383750

134000

150000

142000

829600

65000

68000

66500

394800

427250
616600

476500
840100

464250 2608150
1005850 1005850

616600

840100

1005850 1005850

Income statement:
Yoo bro burger
Budgeted Income Statement
For the year ended December 31, 2016
Details
Sales ( 25600 X 140)
Less: Cost of goods sold (25600*89.75)
Gross margin
Less: Selling and administrative expenses
Operating income
Less: Interest expense
Net income

Taka
3584000
2297600
1286400
454800
831600
0
831600

Income statement data:

1
2
3

A total sale in unit is derived from the Sales Budget.

Unit Product cost is 89.75 Taka.
Selling and administrative expenses are derived from the Selling and Administrative
Expense Budget

Balance sheet:
Key components:

Yoo bro burger reported the following account balances prior to preparing its budgeted financial
statements:
1
2
3

The cash balance of yoo bro burger has been derived from the Cash Budget.
Yoo bro burger has equipment worth 200000 Taka @ 10% half-annual depreciation.
Yoo bro burger also has chairs tables and other worth of 100000 Taka @ 10% half-annual

4
5

depreciation.
The accounts payable balance is 30 % of December raw material purchase.
Yoo bro burger also has a capital of 370000 Taka.

Details

Yoo bro burger Taka

AssetsBudgeted balance sheet
For the year 31dec, 2016

Current assets:
Cash
Equipment
Depreciation on equipment (10%)

Taka

1005850

200000
20000
180000

Chair, tables & others

Depreciation on Stall, chair, tables & others
(10%)

100000
10000
90000
1275850

Total non-current assets

Liabilities and Equity
Current liabilities:
Accounts payable (materials)
Total current liabilities
Total liabilities
Net income
Capital
Total equity
Total equity and liabilities
Conclusion:

74250
74250
74250
831600
370000
1201600
1275850

Here are all the budgets and business details of our restaurant. As a small business, the net profit
is looking good and we are satisfied.