(REMEMBER: DELETE EVERYTHING THAT APPEARS INRED.)
Introduction (Delete this heading in your finalpaper.)
In your opening paragraph, very briefly introduce the purpose ofyour paper. Recall that you will be discussing thebudget process, âmakeâ or âbuyâdecisions, and nonfinancial performancemeasures as explained in your rubric instructions.Three or four sentences are sufficient.
Paragraph 1 (Delete thisheading in your final paper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss the initial budget process.
Paragraph 2 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss the budget variances andpotential reasons for variances.
Paragraph 3 (Delete thisheading in your final paper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss any changes you think the companyshould make based on the variance analysis. What will the changesaccomplish?
Paragraph 4 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss any ethical considerations of thechanges you have selected based on the variance analysis. Why wouldyou recommend these changes?
Paragraph 5 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss the considerations involved indeciding whether to buy a particular component of one of yourproducts or make the product in-house. What factors would youconsider? What are the ethical considerations? What implicationscould this decision have? For each option (i.e., to âmakeâ or toâbuyâ), how this will impact the efficiencies of youroperations?
Paragraph 6 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss what suggestions you would makefor nonfinancial performance measures that the company shouldadopt. What are the pros and cons of each? What are the ethicalconsiderations of your suggestions? Explain the significance ofeach.
Conclusion (Delete thisheading in your final paper.)
The conclusion reminds the reader what your paper is about andallows you to make a final point without introducing newinformation. Three or four sentences are sufficient.
Sales Budget PeytonApproved Sales Budgets July, August, andSeptember 2015 Budgeted Units Budgeted Unit Price Budgeted Total Dollars Jul-15 18,000 18.00 $324,000 Aug-15 22,000 18.00 $396,000 Sep-15 20,000 18.00 $360,000 Total for thefirst quarter 60,000 18 $1,080,000 Production Budget PeytonApproved ProductionBudget July, August,and September 2015 July August Sept. Total Next monthâsbudgeted sales 22,000 20,000 24,000 66,000 Percentage ofinventory to future sales 70% 70% 70% 70% Budgeted endinginventory 15,400 14,000 16,800 46200 Add budgetedsales 18,000 22,000 20,000 60,000 Required units tobe produced 33,400 36,000 36,800 106200 Deduct beginninginventory (Previous month ending inventory) -16,800 -15,400 -14,000 -46,200 Units to beproduced 16,600 20,600 22,800 60,000 Manufacturing Budget -contains raw materials budget, direct labor budget, and factoryoverhead budget PeytonApproved Raw MaterialsBudget July, August, andSeptember 2015 July August Sept. Total Production budget(units) 16,600 20,600 22,800 60,000 Materialsrequirement per unit 0.5 0.5 0.5 0.5 Materials neededfor production 8,300 10,300 11,400 30,000 Add budgetedending inventory 2,060 2,280 1,980 6,320 Total materialsrequirements (units) 10,360 12,580 13,380 36,320 Deduct beginninginventory (previous month ending inventory) -4,600 -2,060 -2,280 -8,940 Materials to bepurchased 5,760 10,520 11,100 27,380 Material price perunit 7.75 7.75 7.75 7.75 Total cost ofdirect material purchases $44,640 $81,530 $86,025 $212,195 PeytonApproved Direct LaborBudget July, August, andSeptember 2015 July August Sept. Total Budgetedproduction (units) 16,600 20,600 22,800 60000 Labor requirementsper unit (hours) 0.5 0.5 0.5 0.5 Total labor hoursneeded 8,300 10,300 11,400 30,000 Labor rate (perhour) 16.00 16.00 16.00 16.00 Labor dollars $132,800 $164,800 $182,400 $480,000 PeytonApproved Factory OverheadBudget July, August, andSeptember 2015 July August Sept. Total Budgetedproduction (units) 16,600 20,600 22800 60000 Variable factoryoverhead rate 1.35 1.35 1.35 1.35 Budgeted variableoverhead 22,410 27,810 $30,780 $81,000 Fixedoverhead 20,000 20,000 20,000 60,000 Budgeted totaloverhead $42,410 $47,810 $50,780 $14,100 Selling Expense Budget PeytonApproved Selling ExpenseBudget July, August, andSeptember 2015 July August Sept. Total Budgeted sales $324,000 $396,000 $360,000 1080000 Sales commission percent 12% 12% 12% 12% Sales commissions expense 38,880 47,520 43,200 $129,600 Sales salaries 3,750 3,750 3,750 11,250 Total selling expenses $42,630 $51,270 $46,950 $140,850 General and AdministrativeExpense Budget PeytonApproved General andAdministrative Expense Budget July, August, andSeptember 2015 July August Sept. Total Salaries $12,000 $12,000 $12,000 $36,000 Interest on long-termnote 2,700 2,700 2,700 8,100 Total expenses $14,700 $14,700 $14,700 $44,100
____________________________________________________________________________________________
Peyton Approved Budget Variance Report For the Year Ended ⦠Actual Results Static Budget Variance Favorable/ Unfavorable Direct materials variances Cost/price variance 240,000 240,000 - Efficiency variance 240,250 212,195 28,055 Unfavorable Total direct materials variance 240,250 212,195 28,055 Unfavorable Direct labor variances Cost /pricevariance $495,000.00 528,000 (33,000) Favorable Efficiencyvariance 528,000 480,000 (48,000) Unfavorable Total direct labor variance 495,000 480,000 (15,000) Unfavorable
The paper should be written against these reports.
(REMEMBER: DELETE EVERYTHING THAT APPEARS INRED.)
Introduction (Delete this heading in your finalpaper.)
In your opening paragraph, very briefly introduce the purpose ofyour paper. Recall that you will be discussing thebudget process, âmakeâ or âbuyâdecisions, and nonfinancial performancemeasures as explained in your rubric instructions.Three or four sentences are sufficient.
Paragraph 1 (Delete thisheading in your final paper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss the initial budget process.
Paragraph 2 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss the budget variances andpotential reasons for variances.
Paragraph 3 (Delete thisheading in your final paper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss any changes you think the companyshould make based on the variance analysis. What will the changesaccomplish?
Paragraph 4 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss any ethical considerations of thechanges you have selected based on the variance analysis. Why wouldyou recommend these changes?
Paragraph 5 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss the considerations involved indeciding whether to buy a particular component of one of yourproducts or make the product in-house. What factors would youconsider? What are the ethical considerations? What implicationscould this decision have? For each option (i.e., to âmakeâ or toâbuyâ), how this will impact the efficiencies of youroperations?
Paragraph 6 (Delete this heading in your finalpaper.)
Using content from your submissions in Final Project Part I andyour readings from Chapters 22, 23, and 25 of yourHorngrenâs text, discuss what suggestions you would makefor nonfinancial performance measures that the company shouldadopt. What are the pros and cons of each? What are the ethicalconsiderations of your suggestions? Explain the significance ofeach.
Conclusion (Delete thisheading in your final paper.)
The conclusion reminds the reader what your paper is about andallows you to make a final point without introducing newinformation. Three or four sentences are sufficient.
| Sales Budget | ||||||||||
| PeytonApproved | ||||||||||
| Sales Budgets | ||||||||||
| July, August, andSeptember 2015 | ||||||||||
| Budgeted Units | Budgeted Unit Price | Budgeted Total Dollars | ||||||||
| Jul-15 | 18,000 | 18.00 | $324,000 | |||||||
| Aug-15 | 22,000 | 18.00 | $396,000 | |||||||
| Sep-15 | 20,000 | 18.00 | $360,000 | |||||||
| Total for thefirst quarter | 60,000 | 18 | $1,080,000 | |||||||
| Production Budget | ||||||||||
| PeytonApproved | ||||||||||
| ProductionBudget | ||||||||||
| July, August,and September 2015 | ||||||||||
| July | August | Sept. | Total | |||||||
| Next monthâsbudgeted sales | 22,000 | 20,000 | 24,000 | 66,000 | ||||||
| Percentage ofinventory to future sales | 70% | 70% | 70% | 70% | ||||||
| Budgeted endinginventory | 15,400 | 14,000 | 16,800 | 46200 | ||||||
| Add budgetedsales | 18,000 | 22,000 | 20,000 | 60,000 | ||||||
| Required units tobe produced | 33,400 | 36,000 | 36,800 | 106200 | ||||||
| Deduct beginninginventory (Previous month ending inventory) | -16,800 | -15,400 | -14,000 | -46,200 | ||||||
| Units to beproduced | 16,600 | 20,600 | 22,800 | 60,000 | ||||||
| Manufacturing Budget -contains raw materials budget, direct labor budget, and factoryoverhead budget | ||||||||||
| PeytonApproved | ||||||||||
| Raw MaterialsBudget | ||||||||||
| July, August, andSeptember 2015 | ||||||||||
| July | August | Sept. | Total | |||||||
| Production budget(units) | 16,600 | 20,600 | 22,800 | 60,000 | ||||||
| Materialsrequirement per unit | 0.5 | 0.5 | 0.5 | 0.5 | ||||||
| Materials neededfor production | 8,300 | 10,300 | 11,400 | 30,000 | ||||||
| Add budgetedending inventory | 2,060 | 2,280 | 1,980 | 6,320 | ||||||
| Total materialsrequirements (units) | 10,360 | 12,580 | 13,380 | 36,320 | ||||||
| Deduct beginninginventory (previous month ending inventory) | -4,600 | -2,060 | -2,280 | -8,940 | ||||||
| Materials to bepurchased | 5,760 | 10,520 | 11,100 | 27,380 | ||||||
| Material price perunit | 7.75 | 7.75 | 7.75 | 7.75 | ||||||
| Total cost ofdirect material purchases | $44,640 | $81,530 | $86,025 | $212,195 | ||||||
| PeytonApproved | ||||||||||
| Direct LaborBudget | ||||||||||
| July, August, andSeptember 2015 | ||||||||||
| July | August | Sept. | Total | |||||||
| Budgetedproduction (units) | 16,600 | 20,600 | 22,800 | 60000 | ||||||
| Labor requirementsper unit (hours) | 0.5 | 0.5 | 0.5 | 0.5 | ||||||
| Total labor hoursneeded | 8,300 | 10,300 | 11,400 | 30,000 | ||||||
| Labor rate (perhour) | 16.00 | 16.00 | 16.00 | 16.00 | ||||||
| Labor dollars | $132,800 | $164,800 | $182,400 | $480,000 | ||||||
| PeytonApproved | ||||||||||
| Factory OverheadBudget | ||||||||||
| July, August, andSeptember 2015 | ||||||||||
| July | August | Sept. | Total | |||||||
| Budgetedproduction (units) | 16,600 | 20,600 | 22800 | 60000 | ||||||
| Variable factoryoverhead rate | 1.35 | 1.35 | 1.35 | 1.35 | ||||||
| Budgeted variableoverhead | 22,410 | 27,810 | $30,780 | $81,000 | ||||||
| Fixedoverhead | 20,000 | 20,000 | 20,000 | 60,000 | ||||||
| Budgeted totaloverhead | $42,410 | $47,810 | $50,780 | $14,100 | ||||||
| Selling Expense Budget | ||||||||||
| PeytonApproved | ||||||||||
| Selling ExpenseBudget | ||||||||||
| July, August, andSeptember 2015 | ||||||||||
| July | August | Sept. | Total | |||||||
| Budgeted sales | $324,000 | $396,000 | $360,000 | 1080000 | ||||||
| Sales commission percent | 12% | 12% | 12% | 12% | ||||||
| Sales commissions expense | 38,880 | 47,520 | 43,200 | $129,600 | ||||||
| Sales salaries | 3,750 | 3,750 | 3,750 | 11,250 | ||||||
| Total selling expenses | $42,630 | $51,270 | $46,950 | $140,850 | ||||||
| General and AdministrativeExpense Budget | ||||||||||
| PeytonApproved | ||||||||||
| General andAdministrative Expense Budget | ||||||||||
| July, August, andSeptember 2015 | ||||||||||
| July | August | Sept. | Total | |||||||
| Salaries | $12,000 | $12,000 | $12,000 | $36,000 | ||||||
| Interest on long-termnote | 2,700 | 2,700 | 2,700 | 8,100 | ||||||
| Total expenses | $14,700 | $14,700 | $14,700 | $44,100 | ||||||
____________________________________________________________________________________________
| Peyton Approved | ||||
| Budget Variance Report | ||||
| For the Year Ended ⦠| ||||
| Actual Results | Static Budget | Variance | Favorable/ Unfavorable | |
| Direct materials variances | ||||
| Cost/price variance | 240,000 | 240,000 | - | |
| Efficiency variance | 240,250 | 212,195 | 28,055 | Unfavorable |
| Total direct materials variance | 240,250 | 212,195 | 28,055 | Unfavorable |
| Direct labor variances | ||||
| Cost /pricevariance | $495,000.00 | 528,000 | (33,000) | Favorable |
| Efficiencyvariance | 528,000 | 480,000 | (48,000) | Unfavorable |
| Total direct labor variance | 495,000 | 480,000 | (15,000) | Unfavorable The paper should be written against these reports. |
