Finally, you will provide a brief written analysis of the variances and discuss additional information needed to see the attached. The due date is Friday 6pm ET.

This assessment addresses the following course outcomes:

? Communicate budget planning to internal stakeholders for strategic planning

? Apply costing methods to production for supporting budget planning and decision making

(REMEMBER: DELETE EVERYTHING THAT APPEARS IN RED.) Please review the Final Project Part I Rubric (budget variance analysis) to see how your paper will be scored. Be sure to follow APA format when providing references. If you have questions on APA format, you can check the Purdue OWL website or seek help from the SNHU Writing Center. Notes on APA in a Formal Assignment Set margins to 1 inch all around. Use 12-point Times New Roman font and make sure to double-space. Paragraphs should be at least three to four sentences. Do not include the headings \"Introduction\" and \"Conclusion.\" These are included below to help you lay out your paper. APA format assumes that the introduction begins the paper, the body continues the paper, and the conclusion wraps up the paper, so those headings are not needed. Indent the first line of every paragraph 0.5\". Be careful not to use personal pronouns such as \"I.\" Make sure to delete the Section 1, Section 2, etc. headings as well. Be sure to replace all the text in red on this template with your own writing. (This entire first page can be deleted after you review the suggestions. The paper should begin with your title page that follows.) ACC 202: Final Project Part I Budget Variance Report Submission Your Name Southern New Hampshire University (REMEMBER: DELETE EVERYTHING THAT APPEARS IN RED.) Introduction (Delete this heading in your final paper.) In your opening paragraph, very briefly introduce the purpose of your paper. Recall that you will be discussing the operating budget and variance analysis as explained in your rubric instructions. Three or four sentences are sufficient. Section 1 (Delete this heading in your final paper.) Using content from your Peyton Approved student worksheet, budget variance worksheet, and from your readings from Chapters 22, 23, and 25 of your Horngrens's text, discuss the budget variances and what each tells you. Section 2 (Delete this heading in your final paper.) Using content from your Peyton Approved student worksheet, budget variance worksheet, and from your readings from Chapters 22, 23, and 25 of your Horngrens's text, discuss what needs to be investigated to determine the reasons for the variance(s) and why. Conclusion (Delete this heading in your final paper.) The conclusion reminds the reader what your paper is about and allows you to make a final point without introducing new information. Three or four sentences are sufficient. References Nobles, T. L., Mattison, B. L., Matsumura, E. M. (2014). Horngren's financial and managerial accounting (4th ed.). Upper Saddle River, NJ: Pearson Education, Inc. Make sure that you provide appropriate citations in APA style. The text is provided as an example and should be kept in the references for your paper. Feel free to add other resources. Remember to cite ALL the sources that you used to write this papernot only here at the end of your paper, but also within the body to add credibility to your statements. References that you have used should be included in alphabetical order by the author's last name. Peyton Approved Budget Variance Report For the Year Ended ... Actual Results Direct materials variances Cost/price variance Efficiency variance Total direct materials variance Direct labor variances Cost /price variance Efficiency variance Total direct labor variance Static Budget Variance (7,500) (7,599) 240,250 495,000 232,500 480,000 33,000 (48,000) (15,000) Favorable/ Unfavorable Favorable Unfavorable Favorable Unfavorable Unfavorable Labor variance actual cost actual quantity standard cost actual quantity standard cost Materials variance actual cost standard quantity standard quantity You are a manager for Peyton Approved, a pet supplies manufacturer. This responsibility requires you to create budgets, make operations to determine if changes need to be made to make the company more efficient. You will be preparing a budget for the quarter July through September 2015. You are provided the following information. The Peyton Approved Budgeted Balance Sheet 30-Jun-15 ASSETS Cash Accounts receivable Raw materials inventory Finished goods inventory Total current assets Equipment Less accumulated depreciation Total assets LIABILITIES AND EQUITY Accounts payable Short-term notes payable Taxes payable Total current liabilities Long-term note payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and equity All assumptions are new and apply to the July through September budget period. 1. Sales were 20,000 units in June 2015. Forecasted sales in units are as follows: July, 18,000; August, 22,000; September, 20,00 is $18.00 per unit and its total product cost is $14.35 per unit. 2. The June 30 finished goods inventory is 16,800 units. 3. Going forward, company policy calls for a given month's ending finished goods inventory to equal 70% of the next month's e 4. The June 30 raw materials inventory is 4,600 units. The budgeted September 30 raw materials inventory is 1,980 units. Raw unit requires 0.50 units of raw materials. Company policy calls for a given month's ending raw materials inventory to equal 20% 5. Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour. 6. Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $1.35 per unit produced. De fixed factory overhead. 7. Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long 8. Sales representatives' commissions are 12% of sales and are paid in the month of the sales. The sales manager's monthly sal Specifically, the following critical elements must be addressed when creating an Operating Budget by completing the budget te Step 1: Prepare a Sales Budget Complete the Sales Budget on the Budgets tab below by using the information found in the budgeted balance sheet above. Consider assumption 1 when completing this critical element: Sales were 20,000 units in June 2015. Forecasted sales in units a September, 20,000; October, 24,000. The product's selling price is $18.00 per unit and its total product cost is $14.35 per unit. You can find an example of a sales budget in Exhibit 22-5 on page 1324 of the textbook. Step 2: Prepare a Production Budget Complete the Production Budget on the Budgets tab below by using the information found in the budgeted balance sheet abo Consider assumption 1 while completing this critical element: Sales were 20,000 units in June 2015. Forecasted sales in units a September, 20,000; October, 24,000. The product's selling price is $18.00 per unit and its total product cost is $14.35 per unit. Consider assumption 2 while completing this critical element: The June 30 finished goods inventory is 16,800 units. Consider assumption 3 while completing this critical element: Going forward, company policy calls for a given month's ending fi next month's expected unit sales. You can find an example of a production budget in Exhibit 22-6 on page 1325 of the textbook. Step 3: Prepare a Manufacturing Budget Complete the Manufacturing Budget on the Budgets tab below by using the information found in the budgeted balance sheet three parts: the Raw Materials Budget, the Direct Labor Budget, and the Factory Overhead Budget. Raw Material Budget Consider assumption 4 while completing this critical element: The June 30 raw materials inventory is 4,600 units. The budgeted 1,980 units. Raw materials cost $7.75 per unit. Each finished unit requires 0.50 units of raw materials. Company policy calls for inventory to equal 20% of the next month's materials requirements. Consider units to be produced found in the production budget while completing this critical element. Direct Labor Budget Consider assumption 5 while completing this critical element: Each finished unit requires 0.50 hours of direct labor at a rate of Consider units to be produced found in the production budget while completing this critical element. Factory Overhead Budget Consider assumption 6 while completing this critical element: Overhead is allocated based on direct labor hours. The predeter produced. Depreciation of $20,000 per month is treated as fixed factory overhead. Consider units to be produced found in the production budget while completing this critical element. Step 4: Prepare a Selling Budget Complete the Selling Expense Budget. Consider assumption 8 while completing this critical element: 8. Sales representatives' commissions are 12% of sales and are p manager's monthly salary is $3,750 per month. Step 5: General and Administrative Expense Budget Complete the General and Administrative Expense Budget. Consider assumption 7 while completing this critical element: 7. Monthly general and administrative expenses include $12,000 interest on the long-term note payable. The following critical elements must be addressed when performing the Budget Variance Analysis using the Budget Variance W be found in the Assignment Guidelines and Rubrics folder. The actual quantity of material used was 31,000 with an actual cost of $7.75 per unit. The actual labor hours were 33,000 with Step 1: Complete A. Develop a variance analysis including a budget variance performance report and appropriate variances f Start with the Labor and Materials Variance tab. Standard costs/quantities come from the raw materials budget and the labor budget. Use Exhibits 23-11 on page 1416 and 23-12 on page 1419 in the textbook as guides. After completing the Labor and Materials Variance tab, transfer variances to the Budget Variance Report tab. Congratulations! You have completed the workbook portion of Final Project Part I. To complete the remainder of the Budget Va use the Final Project Part I Budget Variance Report Template. The Budget Variance Report Template can be found in the Assign pricing decisions, and analyze the results of budgeted balance sheet on June 30, 2015, is: $42,000 259,900 35,650 241,080 578,630 $720,000 240,000 480,000 $1,058,630 $63,400 24,000 10,000 97,400 300,000 397,400 $600,000 61,230 661,230 $1,058,630 00; October, 24,000. The product's selling price xpected unit sales. materials cost $7.75 per unit. Each finished % of the next month's materials requirements. preciation of $20,000 per month is treated as -term note payable. ary is $3,750 per month. mplates found on the "Budgets" tab below. re as follows: July, 18,000; August, 22,000; ve. re as follows: July, 18,000; August, 22,000; finished goods inventory to equal 70% of the above. The manufacturing budget consists of d September 30 raw materials inventory is a given month's ending raw materials $16 per hour. mined variable overhead rate is $1.35 per unit aid in the month of the sales. The sales administrative salaries and 0.9% monthly Worksheet. The Budget Variance Worksheet can an actual rate per hour of $15. or materials, labor, and overhead. ariance Analysis portion of Final Project Part I, ment Guidelines and Rubrics folder. Sales Budget Peyton Approved Sales Budgets July, August, and September 2015 Budgeted Unit Price Budgeted Units Jul-15 Aug-15 Sep-15 Total for the first quarter 18,000 22,000 20,000 18.00 18.00 18.00 60,000 Production Budget Peyton Appro Production Bu July, August, and Sep July Next month's budgeted sales Percentage of inventory to future sales 22,000 70% Budgeted ending inventory 15,400 Add budgeted sales 18,000 Required units to be produced 33,400 Deduct beginning inventory (Previous month ending inventory) 16,800 Units to be produced 16,600 Manufacturing Budget - contains raw materials budget, direct labor budget, Peyton Approved Raw Materials Budget July, August, and September 2 July Production budget (units) 16,600 Materials requirement per unit 0.5 Materials needed for production 8,300 Add budgeted ending inventory 2,060 Total materials requirements (units) 10,360 Deduct beginning inventory (previous month ending inventory) 4,600 Materials to be purchased 5,760 Material price per unit 7.75 Total cost of direct material purchases $44,640 Peyton Approved Direct Labor Budget July, August, and September 2 July Budgeted production (units) Labor requirements per unit (hours) Total labor hours needed Labor rate (per hour) 16,600 0.5 8,300 16.00 $132,800 Labor dollars Peyton Approved Factory Overhead Budget July, August, and September 2 July Budgeted production (units) 16,600 Variable factory overhead rate 1.35 Budgeted variable overhead 22,410 Fixed overhead 20,000 Budgeted total overhead $42,410 Selling Expense Budget Peyton Approved Selling Expense Budget July, August, and September 2015 July Budgeted sales Sales commission percent Sales commissions expense Sales salaries Total selling expenses $324,000 August Sept. $396,000 $360,000 12% 12% 12% 38,800 47,520 43,200 3,750 $4,630 3,750 $51,270 3,750 $46,950 General and Administrative Expense Budget Peyton Approved General and Administrative Expense Budget July, August, and September 2015 July Salaries $12,000 August $12,000 Sept. $12,000 Interest on long-term note Total expenses 2,700 2,700 2,700 $14,700 $14,700 $14,700 Budgeted Total Dollars $324,000 $396,000 $360,000 $1,080,000 Peyton Approved Production Budget August, and September 2015 August Sept. Total 20,000 24,000 70% 70% 14,000 16,800 46200 22,000 20,000 60000 36,000 36,800 106200 15,400 14,000 46,200 20,600 22,800 60,000 rect labor budget, and factory overhead budget ton Approved 66000 Materials Budget , and September 2015 August Sept. Total 20,600 22,800 0.5 0.5 10,300 11,400 30,000 2,280 1,980 6,320 12,580 13,380 36,320 2,060 2,280 8,942 10,520 11,100 27,380 ### 60,000 7.75 $81,350 $86,025 $212,195 ton Approved t Labor Budget , and September 2015 August Sept. Total 20,600 22,800 0.5 0.5 10,300 11,400 16.00 ### 60000 30,000 $164,800 $182,400 $480,000 Sept. Total ton Approved Overhead Budget , and September 2015 August 20,600 22800 ### 1.35 27,810 $30,780 20,000 20,000 $47,810 $50,780 2015 Total 1080000 $129,600 $140,850 dget Total $36,000 60000 81000 141000 $44,100 ACC202Q6180_16EW6 ACC202Q6180 MANAGERIAL ACCOUNTING 16EW6 62 Final Project Part I: Submit Seada Ahmed on Thu, Oct 06 2016, 8:31 AM 100% highest match Submission ID: 269cac95516d436693a7f01fb8572e61 Answer Peyton Budget.docx Word Count: 436 Attachment ID: 136634564 100% other students paper copy. 100% highest match Citations (6/6) 1. 1Another student's paper 2. 2Another student's paper 3. 3Another student's paper 4. 4Another student's paper 5. 5Another student's paper 6. 6Another student's paper ACC 202: 1 FinalProject PartI Budget VarianceReport Submission Seada Ahmed Southern New Hampshire University 2 This paper is regarding operating budget of Peyton Approved and comparision of budget with actual results. 3 The analysis of variances and reasons of variances why they arose are also discussed. 4 The paper also suggests the measures to treat with variances and disposal of variances. The suggestions to control these variances are also given in paper. 2 The Variances regaring material are calculated which reflect that overall material cost variance is unfavorable $7,750 which indicates the inefficiency in control of material costs. On further analysis of material cost variance, marerial Price variance is 0 means the purchase department hs performed its duties efficiently and was able to purchase materials at budgeted pricesbut material quantity or efficiency variance is unfavorable $7,750 which shows inefficiency in consumption of material. The production manager has failed to control the use of material and consumed more material than budgeted.There would have wastage of material. 3 Overall abor variance is also unfavorable $15,000 which reflects inefficiency in use and payment of labor rate. 2 On further analysis it eas observed that labor rate variance is or price variance is favorable $33,000 which indicates efficiency of personal department that it has controlled labor rates. The prices paid for labor are less than budgeted price. 4 But on the other hand labor efficiency variance is unfavorable $48,000 indicating that labor has not been efficiently utilized by production department. 2 There is wastage of time of labor. 5 The production department is not performing as per standards and failed to work according to budget. 2 There is wastage of material as well as labor hours in production department. The resons for this need to be investigated whether theses are due to mismanagement of production manager or due to machines used in production department or working conditions and facilities. If machines are old and not performing as per standards need to be repaired or replaced or action should be taken against production manager. On the basis of variance analysis it can be concluded that purchase department and personal department are performing well but production department's performance is far below standards.The reasons of poor performance of production departments should be investigated whether due to inefficiency of production manager or due to machines or work facilities. After due investigation remedial action should be taken whether aginst production manager or machines should be repaired or replaced or working conditions should be improved. References Nobles, T. L., Mattison, B. 6 L., Matsumura, E.M. (2014). 6 Horngren's financial and managerial accounting(4th ed.).Upper Saddle River, NJ: 2 Pearson Education, Inc. ACC202Q6180_16EW6 ACC202Q6180 MANAGERIAL ACCOUNTING 16EW6 62 Final Project Part I: Submit Seada Ahmed on Thu, Oct 06 2016, 8:31 AM 100% highest match Submission ID: 269cac95516d436693a7f01fb8572e61 Answer Peyton Budget.docx Word Count: 436 Attachment ID: 136634564 100% other students paper copy. 100% highest match Citations (6/6) 1. 1Another student's paper 2. 2Another student's paper 3. 3Another student's paper 4. 4Another student's paper 5. 5Another student's paper 6. 6Another student's paper ACC 202: 1 FinalProject PartI Budget VarianceReport Submission Seada Ahmed Southern New Hampshire University 2 This paper is regarding operating budget of Peyton Approved and comparision of budget with actual results. 3 The analysis of variances and reasons of variances why they arose are also discussed. 4 The paper also suggests the measures to treat with variances and disposal of variances. The suggestions to control these variances are also given in paper. 2 The Variances regaring material are calculated which reflect that overall material cost variance is unfavorable $7,750 which indicates the inefficiency in control of material costs. On further analysis of material cost variance, marerial Price variance is 0 means the purchase department hs performed its duties efficiently and was able to purchase materials at budgeted pricesbut material quantity or efficiency variance is unfavorable $7,750 which shows inefficiency in consumption of material. The production manager has failed to control the use of material and consumed more material than budgeted.There would have wastage of material. 3 Overall abor variance is also unfavorable $15,000 which reflects inefficiency in use and payment of labor rate. 2 On further analysis it eas observed that labor rate variance is or price variance is favorable $33,000 which indicates efficiency of personal department that it has controlled labor rates. The prices paid for labor are less than budgeted price. 4 But on the other hand labor efficiency variance is unfavorable $48,000 indicating that labor has not been efficiently utilized by production department. 2 There is wastage of time of labor. 5 The production department is not performing as per standards and failed to work according to budget. 2 There is wastage of material as well as labor hours in production department. The resons for this need to be investigated whether theses are due to mismanagement of production manager or due to machines used in production department or working conditions and facilities. If machines are old and not performing as per standards need to be repaired or replaced or action should be taken against production manager. On the basis of variance analysis it can be concluded that purchase department and personal department are performing well but production department's performance is far below standards.The reasons of poor performance of production departments should be investigated whether due to inefficiency of production manager or due to machines or work facilities. After due investigation remedial action should be taken whether aginst production manager or machines should be repaired or replaced or working conditions should be improved. References Nobles, T. L., Mattison, B. 6 L., Matsumura, E.M. (2014). 6 Horngren's financial and managerial accounting(4th ed.).Upper Saddle River, NJ: 2 Pearson Education, Inc. ACC202Q6180_16EW6 ACC202Q6180 MANAGERIAL ACCOUNTING 16EW6 62 Final Project Part I: Submit Seada Ahmed on Thu, Oct 06 2016, 8:31 AM 100% highest match Submission ID: 269cac95516d436693a7f01fb8572e61 Answer Peyton Budget.docx Word Count: 436 Attachment ID: 136634564 100% other students paper copy. 100% highest match Citations (6/6) 1. 1Another student's paper 2. 2Another student's paper 3. 3Another student's paper 4. 4Another student's paper 5. 5Another student's paper 6. 6Another student's paper ACC 202: 1 FinalProject PartI Budget VarianceReport Submission Seada Ahmed Southern New Hampshire University 2 This paper is regarding operating budget of Peyton Approved and comparision of budget with actual results. 3 The analysis of variances and reasons of variances why they arose are also discussed. 4 The paper also suggests the measures to treat with variances and disposal of variances. The suggestions to control these variances are also given in paper. 2 The Variances regaring material are calculated which reflect that overall material cost variance is unfavorable $7,750 which indicates the inefficiency in control of material costs. On further analysis of material cost variance, marerial Price variance is 0 means the purchase department hs performed its duties efficiently and was able to purchase materials at budgeted pricesbut material quantity or efficiency variance is unfavorable $7,750 which shows inefficiency in consumption of material. The production manager has failed to control the use of material and consumed more material than budgeted.There would have wastage of material. 3 Overall abor variance is also unfavorable $15,000 which reflects inefficiency in use and payment of labor rate. 2 On further analysis it eas observed that labor rate variance is or price variance is favorable $33,000 which indicates efficiency of personal department that it has controlled labor rates. The prices paid for labor are less than budgeted price. 4 But on the other hand labor efficiency variance is unfavorable $48,000 indicating that labor has not been efficiently utilized by production department. 2 There is wastage of time of labor. 5 The production department is not performing as per standards and failed to work according to budget. 2 There is wastage of material as well as labor hours in production department. The resons for this need to be investigated whether theses are due to mismanagement of production manager or due to machines used in production department or working conditions and facilities. If machines are old and not performing as per standards need to be repaired or replaced or action should be taken against production manager. On the basis of variance analysis it can be concluded that purchase department and personal department are performing well but production department's performance is far below standards.The reasons of poor performance of production departments should be investigated whether due to inefficiency of production manager or due to machines or work facilities. After due investigation remedial action should be taken whether aginst production manager or machines should be repaired or replaced or working conditions should be improved. References Nobles, T. L., Mattison, B. 6 L., Matsumura, E.M. (2014). 6 Horngren's financial and managerial accounting(4th ed.).Upper Saddle River, NJ: 2 Pearson Education, Inc. ACC202Q6180_16EW6 ACC202Q6180 MANAGERIAL ACCOUNTING 16EW6 62 Final Project Part I: Submit Seada Ahmed on Thu, Oct 06 2016, 8:31 AM 100% highest match Submission ID: 269cac95516d436693a7f01fb8572e61 Answer Peyton Budget.docx Word Count: 436 Attachment ID: 136634564 100% other students paper copy. 100% highest match Citations (6/6) 1. 1Another student's paper 2. 2Another student's paper 3. 3Another student's paper 4. 4Another student's paper 5. 5Another student's paper 6. 6Another student's paper ACC 202: 1 FinalProject PartI Budget VarianceReport Submission Seada Ahmed Southern New Hampshire University 2 This paper is regarding operating budget of Peyton Approved and comparision of budget with actual results. 3 The analysis of variances and reasons of variances why they arose are also discussed. 4 The paper also suggests the measures to treat with variances and disposal of variances. The suggestions to control these variances are also given in paper. 2 The Variances regaring material are calculated which reflect that overall material cost variance is unfavorable $7,750 which indicates the inefficiency in control of material costs. On further analysis of material cost variance, marerial Price variance is 0 means the purchase department hs performed its duties efficiently and was able to purchase materials at budgeted pricesbut material quantity or efficiency variance is unfavorable $7,750 which shows inefficiency in consumption of material. The production manager has failed to control the use of material and consumed more material than budgeted.There would have wastage of material. 3 Overall abor variance is also unfavorable $15,000 which reflects inefficiency in use and payment of labor rate. 2 On further analysis it eas observed that labor rate variance is or price variance is favorable $33,000 which indicates efficiency of personal department that it has controlled labor rates. The prices paid for labor are less than budgeted price. 4 But on the other hand labor efficiency variance is unfavorable $48,000 indicating that labor has not been efficiently utilized by production department. 2 There is wastage of time of labor. 5 The production department is not performing as per standards and failed to work according to budget. 2 There is wastage of material as well as labor hours in production department. The resons for this need to be investigated whether theses are due to mismanagement of production manager or due to machines used in production department or working conditions and facilities. If machines are old and not performing as per standards need to be repaired or replaced or action should be taken against production manager. On the basis of variance analysis it can be concluded that purchase department and personal department are performing well but production department's performance is far below standards.The reasons of poor performance of production departments should be investigated whether due to inefficiency of production manager or due to machines or work facilities. After due investigation remedial action should be taken whether aginst production manager or machines should be repaired or replaced or working conditions should be improved. References Nobles, T. L., Mattison, B. 6 L., Matsumura, E.M. (2014). 6 Horngren's financial and managerial accounting(4th ed.).Upper Saddle River, NJ: 2 Pearson Education, Inc