help solving 9) and 10) using the info below

question 9) and 10) below

that answers is info to be used to solve question 9) and 10)

Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May Standard Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.80 feet at $1.00 per foot $ 1.80 Actual: 1.75 feet at $1.40 per foot $ 2.45 Direct labor Standard: 0.90 hours at $15.00 per hour 13.50 Actual: 0.95 hours at $14.60 per hour 13.87 Variable overhead: Standard: 0.90 hours at $6.00 per hour 5.40 Actual: 0.95 hours at $5.60 per hour 5.32 Total cost per unit $20.70 $21.64 Excess of actual cost over standard cost per unit $0.94 The production superintendent was pleased when he saw this report and commented: "This $0.94 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 10,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. b) Production for planning budget 9,000 Actual production Planning budget at 90% 10,000 9,000 c) Planning budget revenue $405,000 Sales units Budgeted selling price Budgeted sales revenue 9,000 $45 $405,000 d) Flexible budgeted revenue $450,000 Number of units produced Budgeted selling price Budgeted sales revenue 10,000 $45 $450,000 A. predertemined fixed overhead rate = Budged ovrhead/budgeted labor hours = $85000/ (0.9 hoursX 10000 units) = $9.44 per DLH B. fixed overhead Applied = actual labor hoursX Pre-determined rate (0.95 hourX 10000 units) X 9.44 $89,680 overapplied fixed overhead = fixed overhead that would have been Applied-actual fixed overhead = 89680 - 88000 $1,680 journal entry accounts debit Credit Fixed overhead 1680 COGS 1680 To record over-applied overhead. D. Fixed overhead included in COGS = 89680 - 1680 $88.000 Question 3) Materials a) Planning expense = Budgeted units x Standard feet per unit x standard cost per foot = 9,000 x 1.8 x 1.0 = 16,200 b) Flexible expense = Actual units x Standard feet per unit x Standard cost per foot = 10,000 x 1.8 x 1.0 = 18,000 c) Actual expense = Actual units x Actual feet per unit x Actual cost per foot = 10,000 x 1.75 x 1.4 = 24,500 d) Budget (Only required part) Planning Flexible Variance Variance Actual budget budget 2 = 1-3 3 4= 3-5 5 Direct 1,800 6,500 16,200 18,000 materials 24,500 (U) (U) Question 4) Labour a) Planning expense = Budgeted units x Standard hrs per unit x Standard rate per hour = 9,000 x 0.9 x 15 = 121,500 b) Flexible expense = Actual units x Standard hrs per unit x Standard rate per hour = 10,000 x 0.9 x 15 = 135,000 c) Actual expense = Actual units x Actual hrs per unit x Actual rate per hour = 10,000 x 0.95 x 14.6 = 138,700 d) Budget report (only required part) Planning budget Variance Flexible budget Variance Actual 2 = 1-3 4 = 3-5 5 Direct labour 121,500 13,500 (U) 135,000 3,700 (U) 138,700 3 Answer Q-5 Part (a). Variable overhead expense Planning budget expense Planning budget unit 9000 Standard Variable overhead per unit 5.4 Total budgeted expense planned output 48600 Part (b) Variable overhead expense Flexible budget expense Actual units 10000 Standard Variable overhead per unit 5.4 Total flexible budgeted expense for actual output 54000 Part (c) Variable overhead expense Actual expense Actual units 10000 Actual overhead per unit 5.32 Total Actual expense for actual output 53200 Answer Q-6 Part(a) Selling and Administrative expense Planning budget expense Expense amount given 4000 Planning budget unit 9000 Budgeted selling price 45 Add:percentage of expense 6% of sales amount (9000 x 45) (405000 x 6%) 24300 Actual units 9000 Budgeted direct material cost 1.8 8% of direct material cos (9000 x 1.8) (16200 x 8%) 1296 Total selling and admin expense for planned output 29596 Part (b) Selling and Administrative expense Flexible budget expense Expense amount given 4000 Actual units 10000 Budgeted selling price 45 Add:percentage of expense 6% of sales amount (10000 x 45) (450000 x 6%) 27000 Actual units 100001 Budgeted direct material cost 1.8 8% of direct material cos (10000 x 1.8) (18000 x 8%) 1440 Total selling and admin eynense for actual output 32440 Perry Company Budgeted Report Month ending may 31 Planning budget (1) Variance (2)=(1)-(3) F/U Flexible Budget (3) Variance(4)=3)-(5)F/UActual Result (5) Units 19000 10000 10000 sales revenue 405000 -45000 F 450000 0 450000 Cost of goods sold DM 16200 -1800 U 18000 -6500 U 24500 DL 121500 - 13500 U 135000 -3700 U 138700 VOH 48600 -5400 U 54000 800 F 53200 FOH 85000 -4680 U 189680 1680 F 88000 Total COGS271300 -25380 U 296680 -7720 U 304400 S& A Expense 29596 -2844 U 32440 -19560 U $2000 NOI 104104 -16776 F 120880 27280 U 93600 9) For June, the company expects to produce and sell the same number of unit they sold (actual) in May at the same $45 per unit. Fixed overhead is still budgeted at $85,000 a month and Selling and Administrative expenses are estimated consistent with the method in June. Use this information and the new standards for June. a) Prepare the "Planning Budget" for June. b) Assume the actual number of units sold it June were 10% higher than planned. How many units were actually sold? Prepare the Flexible Budget for the number of units sold. Koontz Company June Planning Budget Flexible Budget Budgeted # of units Sales Revenue Cost of Goods Sold: Direct Material Direct Labor Variable overhead Fixed Overhead Total Cost of Goods Sold 1001 Doamno O Gross Profit Selling S Administrative Expenses Net Operating Income Koontz Company had the following situations happen during June. Situation A: One of Koontz Company's full-time employees quit. A replacement employee was hired at $16.50 an hour. This employee worked 160 hours during June. Situation B: Power outages occurred three times during the month that caused all production to shut down for.75 hours twice and 1.5 hours the third time. During these times, 4 workers remained on site, but no work was performed. Situation C: An order of raw material was received damaged during shipping. The end of the stack of material (all material in the order) was damaged such that 12% of the order was not usable. Based on the standard, the order was expected to produce 2,000 of the units for the month of June. Situation D: Purchasing was able to negotiate a $2,000 discount for the damaged order from c) above. 10) Consider the four variances for JUNE; Materials Price Variance, Material Quantity Variance, Labor Rate Variance, and Labor Efficiency Variance. a) For Situation A, which of the four variances will be affected by the situation? will it be favorable or unfavorable? Estimate how much of the variance will be impacted by the situation. Hint: Use the formula for the specific variance impacted. Determine the "change the situation will have on each element of the formula (actual and standards) and determine the dollar value of the impact. b) For Situation B, which of the four variances will be affected by the situation? Will the variance be favorable or unfavorable? Estimate the impact to the variance. c) For Situation C, which of the four variances will be affected by the situation? Will it be favorable or unfavorable? Estimate the impact to the variance. d) For Situation D, which of the four variances will be affected by the situation? Will it be favorable or unfavorable? Estimate the impact to the variance. Using the information for C and D, do you think purchasing did well with its negotiation of the discount? Explain. Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May Standard Actual Cost per Cost per Unit Unit Direct materials: Standard: 1.80 feet at $1.00 per foot $ 1.80 Actual: 1.75 feet at $1.40 per foot $ 2.45 Direct labor Standard: 0.90 hours at $15.00 per hour 13.50 Actual: 0.95 hours at $14.60 per hour 13.87 Variable overhead: Standard: 0.90 hours at $6.00 per hour 5.40 Actual: 0.95 hours at $5.60 per hour 5.32 Total cost per unit $20.70 $21.64 Excess of actual cost over standard cost per unit $0.94 The production superintendent was pleased when he saw this report and commented: "This $0.94 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product." Actual production for the month was 10,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials. b) Production for planning budget 9,000 Actual production Planning budget at 90% 10,000 9,000 c) Planning budget revenue $405,000 Sales units Budgeted selling price Budgeted sales revenue 9,000 $45 $405,000 d) Flexible budgeted revenue $450,000 Number of units produced Budgeted selling price Budgeted sales revenue 10,000 $45 $450,000 A. predertemined fixed overhead rate = Budged ovrhead/budgeted labor hours = $85000/ (0.9 hoursX 10000 units) = $9.44 per DLH B. fixed overhead Applied = actual labor hoursX Pre-determined rate (0.95 hourX 10000 units) X 9.44 $89,680 overapplied fixed overhead = fixed overhead that would have been Applied-actual fixed overhead = 89680 - 88000 $1,680 journal entry accounts debit Credit Fixed overhead 1680 COGS 1680 To record over-applied overhead. D. Fixed overhead included in COGS = 89680 - 1680 $88.000 Question 3) Materials a) Planning expense = Budgeted units x Standard feet per unit x standard cost per foot = 9,000 x 1.8 x 1.0 = 16,200 b) Flexible expense = Actual units x Standard feet per unit x Standard cost per foot = 10,000 x 1.8 x 1.0 = 18,000 c) Actual expense = Actual units x Actual feet per unit x Actual cost per foot = 10,000 x 1.75 x 1.4 = 24,500 d) Budget (Only required part) Planning Flexible Variance Variance Actual budget budget 2 = 1-3 3 4= 3-5 5 Direct 1,800 6,500 16,200 18,000 materials 24,500 (U) (U) Question 4) Labour a) Planning expense = Budgeted units x Standard hrs per unit x Standard rate per hour = 9,000 x 0.9 x 15 = 121,500 b) Flexible expense = Actual units x Standard hrs per unit x Standard rate per hour = 10,000 x 0.9 x 15 = 135,000 c) Actual expense = Actual units x Actual hrs per unit x Actual rate per hour = 10,000 x 0.95 x 14.6 = 138,700 d) Budget report (only required part) Planning budget Variance Flexible budget Variance Actual 2 = 1-3 4 = 3-5 5 Direct labour 121,500 13,500 (U) 135,000 3,700 (U) 138,700 3 Answer Q-5 Part (a). Variable overhead expense Planning budget expense Planning budget unit 9000 Standard Variable overhead per unit 5.4 Total budgeted expense planned output 48600 Part (b) Variable overhead expense Flexible budget expense Actual units 10000 Standard Variable overhead per unit 5.4 Total flexible budgeted expense for actual output 54000 Part (c) Variable overhead expense Actual expense Actual units 10000 Actual overhead per unit 5.32 Total Actual expense for actual output 53200 Answer Q-6 Part(a) Selling and Administrative expense Planning budget expense Expense amount given 4000 Planning budget unit 9000 Budgeted selling price 45 Add:percentage of expense 6% of sales amount (9000 x 45) (405000 x 6%) 24300 Actual units 9000 Budgeted direct material cost 1.8 8% of direct material cos (9000 x 1.8) (16200 x 8%) 1296 Total selling and admin expense for planned output 29596 Part (b) Selling and Administrative expense Flexible budget expense Expense amount given 4000 Actual units 10000 Budgeted selling price 45 Add:percentage of expense 6% of sales amount (10000 x 45) (450000 x 6%) 27000 Actual units 100001 Budgeted direct material cost 1.8 8% of direct material cos (10000 x 1.8) (18000 x 8%) 1440 Total selling and admin eynense for actual output 32440 Perry Company Budgeted Report Month ending may 31 Planning budget (1) Variance (2)=(1)-(3) F/U Flexible Budget (3) Variance(4)=3)-(5)F/UActual Result (5) Units 19000 10000 10000 sales revenue 405000 -45000 F 450000 0 450000 Cost of goods sold DM 16200 -1800 U 18000 -6500 U 24500 DL 121500 - 13500 U 135000 -3700 U 138700 VOH 48600 -5400 U 54000 800 F 53200 FOH 85000 -4680 U 189680 1680 F 88000 Total COGS271300 -25380 U 296680 -7720 U 304400 S& A Expense 29596 -2844 U 32440 -19560 U $2000 NOI 104104 -16776 F 120880 27280 U 93600 9) For June, the company expects to produce and sell the same number of unit they sold (actual) in May at the same $45 per unit. Fixed overhead is still budgeted at $85,000 a month and Selling and Administrative expenses are estimated consistent with the method in June. Use this information and the new standards for June. a) Prepare the "Planning Budget" for June. b) Assume the actual number of units sold it June were 10% higher than planned. How many units were actually sold? Prepare the Flexible Budget for the number of units sold. Koontz Company June Planning Budget Flexible Budget Budgeted # of units Sales Revenue Cost of Goods Sold: Direct Material Direct Labor Variable overhead Fixed Overhead Total Cost of Goods Sold 1001 Doamno O Gross Profit Selling S Administrative Expenses Net Operating Income Koontz Company had the following situations happen during June. Situation A: One of Koontz Company's full-time employees quit. A replacement employee was hired at $16.50 an hour. This employee worked 160 hours during June. Situation B: Power outages occurred three times during the month that caused all production to shut down for.75 hours twice and 1.5 hours the third time. During these times, 4 workers remained on site, but no work was performed. Situation C: An order of raw material was received damaged during shipping. The end of the stack of material (all material in the order) was damaged such that 12% of the order was not usable. Based on the standard, the order was expected to produce 2,000 of the units for the month of June. Situation D: Purchasing was able to negotiate a $2,000 discount for the damaged order from c) above. 10) Consider the four variances for JUNE; Materials Price Variance, Material Quantity Variance, Labor Rate Variance, and Labor Efficiency Variance. a) For Situation A, which of the four variances will be affected by the situation? will it be favorable or unfavorable? Estimate how much of the variance will be impacted by the situation. Hint: Use the formula for the specific variance impacted. Determine the "change the situation will have on each element of the formula (actual and standards) and determine the dollar value of the impact. b) For Situation B, which of the four variances will be affected by the situation? Will the variance be favorable or unfavorable? Estimate the impact to the variance. c) For Situation C, which of the four variances will be affected by the situation? Will it be favorable or unfavorable? Estimate the impact to the variance. d) For Situation D, which of the four variances will be affected by the situation? Will it be favorable or unfavorable? Estimate the impact to the variance. Using the information for C and D, do you think purchasing did well with its negotiation of the discount? Explain