hello, i need hekp with question #2. i attached the answers the question one to help save you time. please do not respond with the answers to question 1 A-E. The last time i posted this question last night, the guy who answered it just copy and pasted the budgets i made and attached and ignored question 2.

You are a manager for Peyton Approved, a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the results of 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 2014. You are provided the following Information. The budgeted balance sheet on June 30, 2014, is: Peyton Approved Budgeted Balance Sheet 30-Jun-15 ASSETS Cash Accounts receivable Raw materials Inventory $42,000 259,900 35,650 241.080 Finished goods Inventory Total current assets 578,630 Equipment $720,000 Less accumulated depreciation 240,000 Total assets 480.000 $LOS8.630 $63,400 24,000 LIABILITIES AND EQUITY Accounts payable Short-term notes payable Taxes payable Total current liabilities Long-term note payable 10.000 97,400 300,000 397,400 Total liabilities Common stock $600,000 Retained earnings_61.230 Total stockholders' equlty 661.230 Total Habilities and equity SLOS8.620 1. Sales were 20,000 units in June 2015. Forecasted sales in units are as follows: July, 18,000; August, 22,000; 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. 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 expected unlt sales. 4. The June 30 raw materials inventory is 4,600 units. The budgeted September 30 raw materials inventory is 1,980 units. Raw materials cost $7.75 per unit. Each finished unit requires 0.50 units of raw materials. Company policy calls for a given month's ending raw materials Inventory to equal 20% of the next month's materials requirements. 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. Depreciation of $20,000 per month is treated as faced factory overhead. 7. Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable. 8. Sales representatives commissions are 12% of sales and are paid in the month of the sales. The sales manager's monthly salary is $3,750 per month. 1 Specifically, the following critical elements must be addressed: 1. Operating Budget Create an operating budget using the Final Project Part 1 Student Worksheet. a) Prepare a sales budget. Ensure accuracy of data. b) Prepare a production budget. Ensure the accuracy of your data. c) Prepare a manufacturing budget. Ensure the accuracy of your data. d) Prepare a selling expense budget. Ensure the accuracy of your data. e) Prepare a general and administrative expense budget using appropriate costing methods. 2. Budget Variance Analysis 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 an actual rate per hour of $15. a) Develop a variance analysis induding a budget varlance performance report and appropriate variances for materials and labor. Use the budget variance student worksheet provided. b) In your budget variance report, discuss each variance. What does the variance tell you? In addition, your budget variance report should cover the following: What needs to be Investigated to determine the reason for the variance? E 2 Budgeted Uni Budgeted Unl Budgeted Total Dollars 3 15-Jul 18000 $18 $324,000 4 15-Aug 22000 $18 $396,000 5 15-Sep 20000 $18 $360,000 6 60000 $1.080,000 7 8 9 10 July August September Total 11 ed Sales 22000 20000 24000 60000 12 ure Sales 70% 70% 70% 70% 13 entory 15400 14000 16800 46200 14 18000 22000 20000 60000 15 Produced 33400 36000 36800 106200 16 -16800 - 15400 - 14000 -46200 17 16600 20600 22800 60000 18 19 20 dget 21 July August September Total 22 16600 20600 22800 60000 23 per unit 0.5 0.5 0.5 0.5 24 roduction 8300 10300 11400 30000 25 tory 2060 2280 1980 6320 26 ed 10360 12580 13380 36320 27 4600 -2060 -2280 -8940 28 5760 10520 11100 27380 29 nit $7.75 $7.75 $7.75 $7.75 30 purchased $44,640 $81,530 $86,025 $212,195 31 32 33 34 July August September Total 35 16600 20600 22800 60000 36 t 0.5 0.5 0.5 0.5 37 8300 10300 11400 30000 38 $16 $16 $16 $16 39 $132.800 $164,800 $182,400 $480.000 40 41 42 43 July August September Total 44 16600 20600 22800 60000 45 $1.35 $1.35 $1.35 $135 46 head $22.410 $27,810 $30,780 $81,000 47 $20,000 $20,000 $20,000 $60,000 48 ad $42,410 $47,810 $50,780 $141.000 49 SO 51 J K L M N H D Selling Expense Budget Budgeted Sales Commission Commission Expense Sales Salary Total Expense July August September Total $324,000 $396,000 $360,000 1080000 12% 12% 12% 12% $38,880 $47,520 $43,200 $129,600 $3,750 $3,750 $3,750 $11,250 $42,630 $51,270 $46,950 $140,850 E General & Administrative July Salaries $12,000 Interest on long term note $2,700 Total Expense $14,700 August $12,000 $2,700 $14,700 September $12,000 $2,700 $14,700 Total $36,000 $8,100 $44,100