need help filling out the budget report using the info below and solving 9)

questions to be solved is below

The NOI for second variance column in highlighted area should come out to 31,960

The NOI in higlighted 9) should be 125,368

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. $ 7,000 U $ 500 F $ 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance 3,800 F 7,500 U $ $ 3,800F 3,000 U $ 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 budget Variance Actual budget 2 = 1-3 3 4= 3-5 5 Direct 1,800 16,200 18,000 6,500 24,500 materials (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 3 4= 3-5 5 Direct labour 121,500 13,500 (U) 135,000 3,700 (U) 138,700 10000 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 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%) 243001 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 10000 Budgeted direct material cost 1.8 8% of direct material cos (10000 x 1.8) (18000 x 8%) 1440 Total selling and admin expense for actual output 32440 MATERIA LABOUR VOH Standard for actual- 10000 units SQ/SH Rate S.Cost 18,000 1 18,000.00 9,000 15 135,000.00 9,000 654,000.00 Actual for Actual- 10000 units AQ/AH Rate A.Cost 17,500 24,500.00 9,500 14.6 138,700.00 9,500 5.6 53,200.00 Answer a: MPV= Half of MPV of May = 7000/2= $3,500 U MPV = (SP-AP) * AQ -3500 (SP-1.4) * 17500 SR = 1.4 -0.2 = $ 1.2 Answer 8b: MQV = 2* MQV of May = 500 * 2 = $1,000 F MQV = (SQ - AQ) * SP 1000 = ( 18,000 - AQ) * 1 AQ (i.e Standard for June) = 17,000 or 1.7 feet per unit Answer 8c: Standard hour per unit remains unchanged at 0.9 hr per unit Answer 8d: Standard Rate = 5% + Actual rate of May = 14.6 + 5% = $ 15.33 per hr Answer Se: VOH Rate = Actual rate of may - $ 0.20 per hour = 5.6 - 0.2 = $ 5.40 per hr Answer 8f: SC per unit 2.04 1.7 feet at 1.2 per foot Direct Material Standard Direct Labour Standard Variable OH Standard 0.9 hours at 15.33 per hour 13.80 0.9 hours at 5.4 per hour Total Cost per unit 4.86 20.697 Perry Company Budget Report Month Ending May 31, 20xx Flexible Variance F/U Budget (2)=(1)-(3) (3) Planning Budget (1) F/U Variance (4)=(3)-(5) Actual Results (5) units Sales Revenue Cost of Goods Sold: DM DL VOH FOH Total COGS DOMITI S&A Expense NOI 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 L boomm d Gross Profit Selling $ Administrative Expenses Net Operating Income 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. $ 7,000 U $ 500 F $ 1a. Materials price variance Materials quantity variance 1b. Labor rate variance Labor efficiency variance 1c. Variable overhead rate variance Variable overhead efficiency variance 3,800 F 7,500 U $ $ 3,800F 3,000 U $ 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 budget Variance Actual budget 2 = 1-3 3 4= 3-5 5 Direct 1,800 16,200 18,000 6,500 24,500 materials (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 3 4= 3-5 5 Direct labour 121,500 13,500 (U) 135,000 3,700 (U) 138,700 10000 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 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%) 243001 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 10000 Budgeted direct material cost 1.8 8% of direct material cos (10000 x 1.8) (18000 x 8%) 1440 Total selling and admin expense for actual output 32440 MATERIA LABOUR VOH Standard for actual- 10000 units SQ/SH Rate S.Cost 18,000 1 18,000.00 9,000 15 135,000.00 9,000 654,000.00 Actual for Actual- 10000 units AQ/AH Rate A.Cost 17,500 24,500.00 9,500 14.6 138,700.00 9,500 5.6 53,200.00 Answer a: MPV= Half of MPV of May = 7000/2= $3,500 U MPV = (SP-AP) * AQ -3500 (SP-1.4) * 17500 SR = 1.4 -0.2 = $ 1.2 Answer 8b: MQV = 2* MQV of May = 500 * 2 = $1,000 F MQV = (SQ - AQ) * SP 1000 = ( 18,000 - AQ) * 1 AQ (i.e Standard for June) = 17,000 or 1.7 feet per unit Answer 8c: Standard hour per unit remains unchanged at 0.9 hr per unit Answer 8d: Standard Rate = 5% + Actual rate of May = 14.6 + 5% = $ 15.33 per hr Answer Se: VOH Rate = Actual rate of may - $ 0.20 per hour = 5.6 - 0.2 = $ 5.40 per hr Answer 8f: SC per unit 2.04 1.7 feet at 1.2 per foot Direct Material Standard Direct Labour Standard Variable OH Standard 0.9 hours at 15.33 per hour 13.80 0.9 hours at 5.4 per hour Total Cost per unit 4.86 20.697 Perry Company Budget Report Month Ending May 31, 20xx Flexible Variance F/U Budget (2)=(1)-(3) (3) Planning Budget (1) F/U Variance (4)=(3)-(5) Actual Results (5) units Sales Revenue Cost of Goods Sold: DM DL VOH FOH Total COGS DOMITI S&A Expense NOI 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 L boomm d Gross Profit Selling $ Administrative Expenses Net Operating Income