Hi, this is the last assignment of the course. I don't know anything about accounting. Can you please complete the budget analysis? There is a template attached and you delete everything in red and replace them with the answers. Skip the cover page. I have attached the past assignments for reference for completing this assignment.

If you have any questions, let me know. Thank you very much.

(REMEMBER: DELETE EVERYTHING THAT APPEARS IN RED.) Please review the Final Project Part II Rubric (budget 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 Paragraph 1, Paragraph 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 II Budget Analysis 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 budget process, \"make\" or \"buy\" decisions, and nonfinancial performance measures as explained in your rubric instructions. Three or four sentences are sufficient. Paragraph 1 (Delete this heading in your final paper.) Using content from your submissions in Final Project Part I and your readings from Chapters 22, 23, and 25 of your Horngren's text, discuss the initial budget process. Paragraph 2 (Delete this heading in your final paper.) Using content from your submissions in Final Project Part I and your readings from Chapters 22, 23, and 25 of your Horngren's text, discuss the budget variances and potential reasons for variances. Paragraph 3 (Delete this heading in your final paper.) Using content from your submissions in Final Project Part I and your readings from Chapters 22, 23, and 25 of your Horngren's text, discuss any changes you think the company should make based on the variance analysis. What will the changes accomplish? Paragraph 4 (Delete this heading in your final paper.) Using content from your submissions in Final Project Part I and your readings from Chapters 22, 23, and 25 of your Horngren's text, discuss any ethical considerations of the changes you have selected based on the variance analysis. Why would you recommend these changes? Paragraph 5 (Delete this heading in your final paper.) Using content from your submissions in Final Project Part I and your readings from Chapters 22, 23, and 25 of your Horngren's text, discuss the considerations involved in deciding whether to buy a particular component of one of your products or make the product in-house. What factors would you consider? What are the ethical considerations? What implications could this decision have? For each option (i.e., to \"make\" or to \"buy\"), how this will impact the efficiencies of your operations? Paragraph 6 (Delete this heading in your final paper.) Using content from your submissions in Final Project Part I and your readings from Chapters 22, 23, and 25 of your Horngren's text, discuss what suggestions you would make for nonfinancial performance measures that the company should adopt. What are the pros and cons of each? What are the ethical considerations of your suggestions? Explain the significance of each. 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. Running head: REPORT 1 Budget Variance Report - Accounting Sounida T. Bounphakhom Southern New Hampshire University (SNHU) Running head: REPORT 2 A budget is a financial plan that managers use to coordinate business. (Nobles et.al. p. 1316) Without a budget, businesses could overspend causing them to not be profitable or not bring in enough revenue which is just as bad. An operating budget is the set of budgets that project sales revenue cost of goods sold, and selling and administrative expenses, all of which feed into the budgeted income statement that projects operating income for the period. (Nobles et. al. p.1322) A variance on the other hand, is the difference between an actual amount and the budgeted amount. Budget variances will be discussed throughout this report. As stated earlier, variances show the difference between an actual amount and the budgeted amount. When a variance happens, a managers job is to figure out the \"why\". The reasons why could be a number of things such as prices cost and or difference in volume sold. There are different types of budgeted variances. Under the static budget variance you can find two types, flexible budget variance and sale volume variance. Flexible budget variance is the difference between actual results and the expected results and sales volume is the difference between the expected results in the flexible budget. (Nobels et.al. p. 1406) The flexible budget variance happens when the sales price per unit, variable cost per unit, and/or total fixed cost was different than planned in the budget. Variances are investigated for a number of reasons. For example, the static budget for direct materials was $31980 but the actual budget was $31000. This creates a difference or variance of $7595 which is favorable. Or let's says those numbers were reversed then the variance would be unfavorable which would represent a price/cost Running head: REPORT 3 issue. Whenever the budgeted amount is greater than the actual sale it is indicative of pricing, not enough inventory or other underlying factors such as theft etc. In conclusion, variances as well as budgets are important to the daily function of a business. Without a budget a company has no clue of what it potential is or where its losing. Variances help decode where there is good business versus bad business. Without a budget in place, a company unable to diagnose its health. Running head: REPORT References: - 4 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 Favorable/ Unfavorable 240,250 240,250 480,500 240,250 232,500 472,750 (7,750) Unfavorable (7,750) Unfavorable 495,000 528,000 1,023,000 528,000 480,000 1,008,000 33,000 Favorable (48,000) Unfavorable (15,000) Unfavorable Labor variance actual cost $ 15 actual quantity 33,000 standard cost $ 16 33,000 Favorable (48,000) Unfavorable Labor Cost/price variance Total Variance standard quantity 30,000 Labor Efficiency variance (15,000) Unfavorable Materials variance actual cost $ 7.75 actual quantity 31,000 0 Favorable Materials Cost/price variance Total Variance= standard cost $ 7.75 (7,750) Unfavorable Materials Efficiency variance (7,750) Unfavorable standard quantity 30,000 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 can 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. epreciation of $20,000 per month is treated as -term note payable. ary is $3,750 per month. emplates 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 0 administrative salaries and 0.9% monthly Worksheet. The Budget Variance Worksheet 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 Units Jul-15 Aug-15 Sep-15 Total for the first quarter 18,000 22,000 20,000 Budgeted Unit Price 18.00 18.00 18.00 60,000 Production Budget Peyton Appr Production B 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 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 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 Budge July, August, and September 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% 38,880 47,520 43,200 3,750 3,750 3,750 $42,630 $51,270 $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 y, August, and September 2015 August Sept. 20,000 24,000 70% 70% 14,000 16,800 22,000 20,000 36,000 36,800 15,400 14,000 20,600 22,800 rect labor budget, and factory overhead budget yton Approved Total 66,000 106,200 60,000 Materials Budget t, and September 2015 August Sept. Total 20,600 22,800 0.5 0.5 10,300 11,400 2,280 1,980 12,580 13,380 2,060 2,280 10,520 11,100 7.75 ### $81,530 $86,025 60,000 30,000 36,320 27,380 $212,195 yton Approved ct Labor Budget t, and September 2015 August Sept. Total 20,600 22,800 0.5 0.5 10,300 11,400 16.00 ### 60,000 30,000 $164,800 $182,400 $480,000 Sept. Total yton Approved Overhead Budget t, and September 2015 August 20,600 22800 1.35 ### 27,810 $30,780 20,000 20,000 $47,810 $50,780 2015 Total $1,080,000 $129,600 $140,850 dget Total $36,000 60,000 $81,000 60,000 $141,000 8,100 $44,100 ACC 202: FinalProject Part IIBudget Analysis Submission YourName Southern New Hampshire University The purpose of this paper is to discuss the budgeting process for Peyton Approved based on the variances found in an earlier focus paper. The main focus here will be that of the budget process, the \"make\" or \"buy\" decisions and the nonfinancial performance measures to try to feasible help fix the current process or work out why some of the variances are unfavorable. The initial budget process showed the difference between what was budgeted for direct material sales and direct labor versus the actual materials and labor numbers. Using the numbers provided, it was found that the variance with direct materials was favorable, meaning that the budgeted numbers were successfully maintained and in line with efficiency wants of Peyton Approved. Direct labor on the other hand was found to be unfavorable meaning that there are discrepencies with efficiencywithin that department. The variance discrepancy for labor could come about from many different possibilities, but it is something that is evident because of possible lack of man-power, lack of sufficient training, or even competition in the area paying employees for money for the same type of job. The main thing to focus on within the firm would be to get sufficient training or enough capable manpower to be efficient and effective and able to competently do the job. One thing that could happen is outsourcing of employees to save money, however this could cause an ethical dilemma. It is tough for a community if jobs are taken away. NASA leaving the Space Coast of Florida caused many businesses to close, many hundred people were outjobs all of a sudden. Something of this nature brings up an ethical dilemma. It is more prudent to offer sufficient training programs to make the sure the employees are capable of the work. Based on the variance analysis, as was stated earlier, the direct materials cost are in line between what was budgeted and what was actual. Therefore, they are working in favorable conditions on that front. Labor seems to be where the variance is, and it is in the best interest of the company to really drill down as to where and why there is such a variance and address the issues. Even if that means outsourcing some of the labor, not all, therefore lessening the blow to the community, it could help alleviate some of the shortfall when it comes to labor cost. The changes would accomplish more bottom line money for the firm, and keep the company in the good graces with the surrounding community. \"Make\" or \"buy\" consideration is a big one, especially when trying to maximize profits and stay in line with budgets. There is something to be said about keeping all of the componants of a product manufactured within the country or area in which the manufacturer is located in, however if the quality of the product is being compromised, manufacturing in house would be better as long as it was financially responsible. \"Make-or-Buy decision (also called the outsourcing decision) is a judgment made by management whether to make a component internally or buy it from the market. While making the decision, both qualitative and quantitate factors must be considered.Examples of the qualitative factors in make-or-buy decision are: control over quality of the component, reliability of suppliers, impact of the decision on suppliers and customers, etc.The quantitative factors are actually the incremental costs resulting from making or buying the component. For example: incremental production cost per unit, purchase cost per unit, production capacity available to manufacture the component, etc.\" (Make or Buy; n.d.)\"Make\" or \"buy\" will influence the efficiencies of the operations, if done correctly and with ethics in mind in a positive way. Ideally, it would be in the companies best interest to make everything, however that is not always the most fiscally responsible especially for the consumer and investors. But if all of the options are weighed and have the right ideals kept in mind, this is a positive for the firm. There are many non-financial performance measures that the company should adopt. Using the numbers from previous budgets and seeing that there is a shortfall from actual labor rates compared to budgeted, they should adopt a full-scale training for new employees to continue to run the firm efficiently and effectively. Also, think about the consumer in which is buying the products as well as the community in which the firm is housed and work within the best interest of those people, not from a financial stand-point but from being good stewards. Other nonfinancial measures should be measuring efficiencies within the firm. Key performance indicators are a way to make sure that the employees are being used in the correct way, and rewarding employees for hitting strategically maintained goals could boost morale within the firm and make coming to work more enjoyable. The goals should be attainable while being challenging. This takes the emphasis off of the money and more on helping everyone be successful, while keeping morale high. In conclusion, making a budget is extremely helpful to know where the firm comes in financially periodically. It shows the efficiency and deficiency of the firm and lets them know where they can improve or if their budget is just right. It allows for adjustments and really is able to hone in on what changes need to be made for the benefit of the firm and all involved. References Make-or-Buy Decision. (n.d.). Retrieved November 15, 2015, from http://accountingexplained.com/managerial/relevant-costing/make-or-buy-decision Nobles, T. L., Mattison, B. L., Matsumura, E. M. (2014). Horngren's financial and managerial accounting (4thed.). Upper Saddle River, NJ: Pearson Education, Inc