hello, please help me with question 2. i have attached the answers for question 1, A-E to assist you find the variances.

again, i only need help with the second question regarding the budget variance analysis. please do not copy and paste my budgets that i attached to this question and post it as your answer like the last guy who answered this last night.

thank you (:

Prompt 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 $42,000 259,900 35,650 241.08 ASSETS Cash Accounts receivable Raw materials Inventory Anished goods Inventory Total current assets 576,630 Equlpment $720,000 Less accumulated depreciation 240.000 Total assets LABILITIES AND EQUITY Accounts payable $63,400 Short-term notes payable Taxes payable Total current liabilities Long-term note payable 480.000 SLOS.680 24,000 10.000 97,400 300,000 397,400 Total abilities Common stock $600,000 Retained earnings_61.230 Total stockholders' equity 661.230 Total liabilities and equity $1.058.630 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 unle 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 polley calls for a given month's ending finished goods Inventory to equal 70% of the next month's expected unle 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 unt. Each finished unlt requires 0.50 unlts 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. S. 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 unle produced. Depreciation of $20,000 per month is treated as fixed factory overhead. 7. Monthly general and administrative expenses Include $12,000 administrative salaries and 0.9% monthly Interest on the long-term note payable. & Sales representatives' commissions are 12% of sales and are pald in the month of the sales. The sales manager's monthly salary is $3,750 per month. Specifically, the following critical elements must be addressed: 1. Operating Budget Create an operating budget using the Final Project Part 1 Student Worksheet. .) Prepare a sales budget. Ensure accuracy of data. b) Prepare a production budget. Ensure the accuracy of your data. 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 Varlance 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 Including a budget varlance performance report and appropriate variances for materials and labor. Use the budget varlance student worksheet provided. b) In your budget variance report discuss each variance. What does the variance tell you? In addition, your budget varlance report should cover the following: What needs to be investigated to determine the reason for the variance? A Sales Budget WN 15 Jul 15 Aug 15-Sep Budgeted Uni Budgeted Unl Budgeted Total Dollars 18000 $18 $324,000 22000 $18 $396,000 20000 $18 $360,000 60000 $1.080,000 6 First Quarter Total July August September Total 22000 20000 24000 60000 70% 70% 70% 70% 15400 14000 16800 46200 18000 22000 20000 60000 33400 36000 36800 106200 -16800 - 15400 - 14000 46200 16600 20600 22800 60000 9 B. Production Budget 10 11 Next Months Budgeted Sales 12 X of Inventory to Future Sales 13 Budgeted Ending Inventory 14 Budgeted Sales 15 Required Units To be Produced 16 Beginning Inventory 17 Units to be produced 18 19 20 C. Manufacturing Budget 21 Raw Materials 22 Productions Budget 23 Materials requirement per unit 24 Materials needed for production 25 Budgeted ending inventory 26 Totoal materials required 27 Beginning inventory 28 Materials purchased 29 Matierials price per unit 30 total cost of materials purchased 31 32 33 Direct Labor 34 35 Budgeted Production 36 Labor required per unit 37 Total hours 38 Labor rate 39 Labor cost 40 41 42 Overhead 43 44 Budgeted Production 45 Variable Overhead rate 46 Budgeted variable overhead 47 fixed overhead 48 budgeted total overhead 49 July August September Total 16600 20600 22800 60000 0.5 05 05 0.5 8300 10300 11400 30000 2060 2280 1980 6320 10360 12580 13380 36320 4600 -2060 -2280 -8940 5760 10520 11100 27380 $7.75 $7.75 $7.75 $7.75 $44,640 $81.530 $86,025 $212,195 July August September Total 16600 20600 22800 60000 0.5 0.5 0.5 05 8300 10300 11400 30000 $16 $16 $16 516 $132.800 $164,800 $182.400 5480,000 July August 16600 20600 $1.35 $1.35 $22.410 $27,810 $20,000 $20.000 $42.410 $47,810 September Total 22800 60000 $1.35 $135 $30.780 $81.000 $20,000 560,000 $50,780 $141.000 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 H Peyton Approved Budget Variance Report For the Year Ended... Actual Results Static Budget Variance Favorable/ Unfavorable Direct materials variances Cost/price variance Efficiency variance Total direct materials variance Direct labor variances Cost/price variance Efficiency variance Total direct labor variance F G . Labor variance actual cost actual quantity standard cost standard quantity Materials variance actual quantity standard cost actual cost standard quantity