ACC 1820 Project 5 (Ch 8) Name Use Question8 from HW7 for Perry Company to compl

Question

ACC 1820 Project 5 (Ch 8) Name 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 & 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) loren the inventou levei 6 nnanged,beynm,Andy b) How many units did Perry Company plan for in their "Planning Budget for May? 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. a uni's Planing buager In this case, assume "lexible budget equals "actual" for revenue. If Flexible Budget by definition represents budgeted revenue for actual number of units sold, give two reasons/situations that might cause "actual revenue to be different from "flexible budget" revenue. Answer in full sentences. 1) nus Sola , au overhead was at $85,000 and applied per labor a) Calculate the predetermined Fixed overhead rate per direct labor hour. (Predetermined OH rate Budgeted Overhead divided by Budgeted labor bours). Sknderd direr lap:/'mr , ? x1ofco-a720

Explanation / Answer

1. A . If the inventory levels are unchnaged then the last ending inventory and now ending inventory will be same . The relationship between the production levels and sales levels may differ by increase in production prices and increase in sales prices but the inventory levels will be same .

B . If assuming Actual production is 12000 then according to the given condition the planning production is less then actual production by 10% so, planning production will be 12000 units - 10% = 10800 units.

C. Planning budget revenues is 10800 units * 45 price = $486000

D. Flexible budget is as same as the actual production units so , 12000 units * $ 45 sales price = $ 540000

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