Use Question8 from HW7 for Perry Company to complete the requirements here. Foll

Question

Use Question8 from HW7 for Perry Company to complete the requirements here. Follow these steps to complete the "Planning budget", "flexible budget" and "actual" income statement amounts in the table at the end of the Packet. If you are familiar with excel, you may use the worksheet "Project 8 Worksheet found on D2L. Highlighted items are check figures that will be provided. 1) (5 points) Perry Company uses a Flexible budget that is prepared using standards. May's "Planning" production was expected to be 10% less than their actual production. (Actual production times 90%). Perry's Company sales price is $45 per unit and their inventory levels were consistent from the beginning to the end of the month. Please show your work/calculations here. When Inventory levels are unchanged, what does this tell you about the relationship between production levels and sales levels? Answer in full sentence. a) wren the inventor) levei ? unchanged ,bginang 'nons) b) How many units did Perry Company plan for in their "Planning Budget" for May? 30 c) What was their "Planning" budgeted revenue in dollars? d) What is their flexible" budgeted revenue for the number of units produced (CONNECT)? e) Enter the revenue amounts in the correct columns on the Budget Report at the end of the Packet. 1) If Flexible Budget by definition represents budgeted revenue for actual number of units sold, give In this case, assume "flexible" budget equals "actual" for revenue. two reasons/situations that might cause "actual" revenue to be different from "flexible budget" revenue. Answer in full sentences. ach 2) S pointy) Fied manufacturing overhend wt, a hour o labor. Calculate the predetermined Fixed overhead rate per direct labor hour. (Predetermined OH rate- Budgeted Overhead divided by Budgeted labor hours). a) erd dicecr laber bors .axloc

Explanation / Answer

Perry Company Budget Report Month ending May 31, 20XX Planning Budget Variance F or U Flexible Budget Variance F or U Actual Results References (1) (2)=(1)-(3) 3 4=3-5 5 Units 10800 -1200 U 12000 0 N/a 12000 Sales Revenue 486000 -54000 U 540000 0 N/a 540000 Cost of Goods Sold: Direct Material 34992 -3888 F 38880 -7320 F 46200 Direct Labor 184680 -20520 F 205200 -4560 F 209760 Variable Overhead 62208 -6912 F 69120 720 U 68400 Fixed Overhead 85000 0 N/a 85000 -3000 F 88000 Total Cost of Goods sold 366880 -31320 F 398200 -14160 F 412360 0 Gross Profit 119120 -22680 U 141800 14160 F 127640 Selling and Administrative expenses 35959 -3551 F 39510 -12490 F 52000 Net operating income 83161 -19129 U 102290 26650 F 75640

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