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ACC 202 Final Project Part I and II Guidelines and Rubric
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ACC 202 Final Project Part I Guidelines and Rubric

Overview

To be successful, all businesses must perform periodic assessments to determine the efficiency of operations. Whether you are an owner, a manager, or a front- line employee, at some time you will be affected by a budget.

 

Preparing a budget and analyzing the results of operations in relation to the budget will help you understand how to use financial information to evaluate the effectiveness of an organization’s operations. The process will also help you determine the reasons operations do not always go as planned and make decisions on changes that might need to be made to make the organization, or just your own department, more efficient.

 

In the Budget Workbook, you will use course-provided information to 1) prepare an operating budget, 2) compare actual operational results to the budgets to determine financial strengths and weaknesses, and 3) make decisions about operational changes that need to be made.

 

To do this, you will prepare an operating budget at the beginning for your company. Your budget will include different products with different costing methods, labor, overhead, and sales projections based on a desired profit margin. You will compare your budget to actual results to determine and analyze variances. This variance analysis will allow you to make decisions about changes that should be made to make your organization more efficient.

 

This assessment addresses the following course outcomes:

 

  • ACC-202-01:       Communicate budget planning to internal stakeholders for strategic planning
  • ACC-202-02:       Apply costing methods to production for supporting budget planning and decision making

 

Prompt

You are a manager for Peyton Approved, a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the results of 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 2014. You are provided the following information. The budgeted balance sheet at June 30, 2014, is:

 

 

Peyton Approved

Budgeted Balance Sheet

 

30-Jun-15

 

ASSETS

 

 

Cash

 

$42,000

Accounts receivable

 

259,900

Raw materials inventory

 

35,650

Finished goods inventory

 

241,080

Total current assets

 

578,630

Equipment

$720,000

 

Less accumulated depreciation

240,000

480,000

Total assets

 

$1,058,630

 

LIABILITIES AND EQUITY

 

 

Accounts payable

 

$63,400

Short-term notes payable

 

24,000

Taxes payable

 

10,000

Total current liabilities

 

97,400

 

 

Long-term note payable

300,000

Total Liabilities

397,400

Common stock

$600,000

Retained earnings

    61,230

Total stockholders’ equity

661,230

Total liabilities and equity

$1,058,630

 

  1. Sales were 20,000 units in June 2014. Forecasted sales in units are as follows: July, 19,000; August, 21,000; September, 20,000; October, 24,000. The product’s selling price is $17.50 per unit and its total product cost is $14.35 per unit.
  2. The June 30 finished goods inventory is 14,700 units.
  3. Going forward, company policy calls for a given month’s ending finished goods inventory to equal 70% of the next month’s expected unit sales.
  4. The June 30 raw materials inventory is 4,375 units. The budgeted September 30 raw materials inventory is 1,980 units. Raw materials cost $8 per unit. Each finished unit requires 0.50 units of raw materials. Company policy calls for a given month’s ending raw materials inventory to equal 20% of the next month’s materials requirements.
  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 direct labor hour. Depreciation of $20,000 per month is treated as fixed factory overhead.
  7. Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable.
  8. Sales representatives’ commissions are 10% of sales and are paid in the month of the sales. The sales manager’s monthly salary is $3,750 per month.
  9. The company expects 30% of sales to be for cash and the remaining 70% on credit. Receivables are collected in full in the month following the sale (none are collected in the month of the sale).
  10. All raw materials purchases are on credit, and no payables arise from any other transactions. One month’s raw materials purchases are fully paid in the next month.
  11. Dividends of $20,000 are to be declared and paid in August.
  12. Income taxes payable at June 30 will be paid in July. Income tax expense will be assessed at 35% in the quarter and paid in October.
  13. Equipment purchases of $100,000 are budgeted for the last day of September.

 

The minimum ending cash balance for all months is $40,000. If necessary, the company borrows enough cash using a short-term note to reach the minimum. Short-term notes require an interest payment of 1% at each month-end (before any repayment). If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short-term notes payable balance.

 

Specifically, the following critical elements must be addressed:

 

1.       Operating Budget

Create an operating budget

  1. Prepare a sales budget. Ensure accuracy of data. [ACC-202-02]
  2. Annotate your sales budget line items. Why have you made the choices you have made? What information informed your decision for each item? [ACC-202-01]
  3. Prepare a production budget. Ensure the accuracy of your data. [ACC-202-02]
  4. Annotate your production budget line items. Why have you made the choices you have made? What information informed your decision for each item? [ACC-202-01]
  5. Prepare a manufacturing budget. Ensure the accuracy of your data. [ACC-202-02]
  6. Annotate your manufacturing budget line items. Why have you made the choices you have made? What information informed your decision for each item? [ACC-202-01]
  7. Prepare a selling expense budget. Ensure the accuracy of your data. [ACC-202-02]
  8. Annotate your selling expense budget line items. Why have you made the choices you have made? What information informed your decision for each item? [ACC-202-01]
  9. Prepare a general and administrative expense budget using appropriate costing methods. [ACC-202-02]
  10. Annotate your line items. Why have you made the choices you have made? What information informed your decision for each item? [ACC-202- 01]

 

2.       Budget Variance Analysis

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 an actual rate per hour of

$15.

  1. Develop a variance analysis including a budget variance performance report and appropriate variances for materials, labor, and overhead. [ACC- 202-01]
  2. Annotate each variance. What does the variance tell you? [ACC-202-01]
  3. What needs to be investigated to determine the reason for the variance? Why? [ACC-202-01]

 

Final Project Part I Rubric

Guidelines for Submission: Complete the Final Project Part I Student Worksheet and the Budget Variance Student Worksheet. Your annotation and analysis should be 5–7 pages, double-spaced, with one-inch margins, 12-point Times New Roman font, and APA format.

 

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.

 

Critical Elements

Exemplary

Proficient

Needs Improvement

Not Evident

Value

Operating Budget: Sales Budget

[ACC-202-02]

 

Prepares sales budget, and data is accurate

(100%)

Prepares sales budget, but it contains some errors

(55%)

Does not prepare a sales budget

 

(0%)

7.5

Operating Budget: Annotate Sales Budget

[ACC-202-01]

Meets “Proficient” criteria, and justification is well supported with specific evidence

(100%)

Annotates line items, and justifies decisions that were made and what informed them

(85%)

Annotates line items, but does not identify decisions that were made and what informed them

(55%)

Does not annotate line items

 

 

(0%)

7.5

Operating Budget: Production Budget

[ACC-202-02]

 

Prepares production budget, and data is accurate

(100%)

Prepares production budget, but it contains some errors

(55%)

Does not prepare a production budget

(0%)

7.5

Operating Budget: Annotate Production Budget

[ACC-202-01]

Meets “Proficient” criteria, and justification is well supported with specific evidence

(100%)

Annotates line items and justifies decisions that were made and what informed them

(85%)

Annotates line items, but does not identify decisions that were made and what informed them

(55%)

Does annotate line items

 

 

(0%)

7.5

Operating Budget: Manufacturing Budget

[ACC-202-02]

 

Prepares manufacturing budget, and data is accurate

(100%)

Prepares manufacturing budget, but it contains some errors (55%)

Does not prepare a manufacturing budget (0%)

7.5

Operating Budget: Annotate Manufacturing Budget

[ACC-202-01]

Meets “Proficient” criteria, and justification is well supported with specific evidence

(100%)

Annotates line items and justifies decisions that were made and what informed them

(85%)

Annotates line items, but does not identify decisions that were made and what informed them (55%)

Does not annotate line items

 

 

(0%)

7.5

Operating Budget: Selling Expense Budget

[ACC-202-02]

 

Prepares selling expense budget, and data is accurate

(100%)

Prepares selling expense budget, but it contains some errors (55%)

Does not prepare a selling expense budget

(0%)

7.5

Operating Budget: Annotate Selling Expense Budget

[ACC-202-01]

Meets “Proficient” criteria, and justification is well supported with specific evidence

(100%)

Annotates line items and justifies decisions that were made and what informed them

(85%)

Annotates line items, but does not identify decisions that were made and what informed them

(55%)

Does not annotate line items

 

 

(0%)

7.5

Operating Budget: General and Administrative Expense Budget

[ACC-202-02]

 

Prepares general and administrative expense budget and utilizes appropriate costing methods

(100%)

Prepares general and administrative expense budget, but does not utilize appropriate costing methods

(55%)

Does not prepare general and administrative expense budget

 

 

(0%)

7.5

 

Operating Budget: Annotate Administrative Expense Budget

[ACC-202-01]

Meets “Proficient” criteria, and justification is well supported with specific evidence

(100%)

Annotates line items and justifies decisions that were made and what informed them

(85%)

Annotates line items, but does not identify decisions that were made and what informed them (55%)

Does not annotate line items

 

 

(0%)

7.5

Budget Variance Analysis: Variance Analysis

[ACC-202-01]

 

Develops a variance analysis that includes a budget variance performance report and appropriate variances for materials, labor, and overhead

(100%)

Develops a variance analysis that includes a budget variance report, but variances for materials, labor, and overhead are not appropriate

(55%)

Does not develop a variance analysis

 

 

 

(0%)

7.5

Budget Variance Analysis: Annotate [ACC-202-01]

Meets “Proficient” criteria and demonstrates awareness of the role of variances

(100%)

Annotates each variance and determines what variances inform

(85%)

Annotates each variance, but does not determine what variances inform

(55%)

Does not annotate each variance

 

 

(0%)

7.5

Budget Variance: Investigation [ACC-202-01]

Meets “Proficient” criteria, and justification is well supported with examples

 

(100%)

Identifies what needs to be investigated to determine the reason for the variance and justifies response

(85%)

Identifies what needs to be investigated to determine the reason for the variance, but response lacks justification

(55%)

Does not identify what needs to be investigated to determine reason for variance

 

(0%)

7.5

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format

(100%)

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

 

 

 

(85%)

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

(55%)

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

 

(0%)

2.5

Earned Total

100%

 

 

ACC 202 Final Project Part II Guidelines and Rubric

Overview

To be successful, all businesses must perform periodic assessments to determine the efficiency of operations. Whether you are an owner, a manager, or a front- line employee, at some time you will be affected by a budget.

 

Preparing a budget and analyzing the results of operations in relation to the budget will help you understand how to use financial information to evaluate the effectiveness of an organization’s operations. The process will also help you determine the reasons operations do not always go as planned and make decisions on changes that might need to be made to make the organization, or just your own department, more efficient.

 

In the budget report, you will use course-provided information to communicate the results of operations to internal parties. This assessment addresses the following course outcomes:

  • Communicate budget planning to internal stakeholders for strategic planning
  • Apply costing methods to production for supporting budget planning and decision making
  • Analyze financial information in identifying opportunities for operational efficiencies
  • Apply ethics within the accounting decision-making process for supporting responsible business activities

 

Prompt

You are a manager for a pet supplies manufacturer. This responsibility requires you to create budgets, make pricing decisions, and analyze the results of operations to determine if changes need to be made to make the company more efficient.

 

Using the workbooks you created for Final Project Part I, you will make decisions about possible changes that should be made to make the company more efficient. You will look at the possibility of making some components of one product instead of buying them, and you will determine how to evaluate the company as a whole and managers in particular. You will create a report detailing your findings.

 

Specifically, the following critical elements must be addressed:

 

Prepare a Report

  1. Discuss the initial budget process, the variances, and potential reasons for the variances.
  2. Determine changes you think the company should make based on the variance analysis. What will the changes accomplish?
  3. What are the ethical considerations of the changes you have selected? Why are you recommending these particular changes?
  4. Decide whether you continue buying a particular component of one of your products or making the product in-house. Develop a recommendation on the “make” or “buy” decision for the given component. What factors did you consider?

 

  1. What are the ethical considerations of your decision? What implications could this decision have?
  2. Describe how your decision was reached. How will this impact the efficiencies of your operation?
  3. What suggestions would you make for nonfinancial performance measures that the company should adopt? What are the pros and cons of each?
  4. What are the ethical considerations of your suggestions? Explain the significance of each.

 

Final Project Part II Rubric

Guidelines for Submission: Your budget report should be 1–2 pages, double-spaced, with one-inch margins, 12-point Times New Roman font, and APA format.

 

Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.

 

Critical Elements

Exemplary (100%)

Proficient (85%)

Needs Improvement (55%)

Not Evident (0%)

Value

Prepare a Report: Budget Process

Meets “Proficient” criteria, and reasoning demonstrates awareness of potential business

situations

Discusses the initial budget process and the variances and describes potential reasons for

variances

Discusses the initial budget process and the variances, but does not describe potential

reasons for variances

Does not describe initial budget process

11.5

Prepare a Memo: Changes

Meets “Proficient” criteria and demonstrates awareness of implications of making changes

Determines changes the company should make based on variance analysis and identifies what will be accomplished by making these changes

Determines changes the company should make based on variance analysis, but does not identify what will be accomplished by making these

changes

Does not determine changes the company should make

11.5

Prepare a Report: Ethical Considerations

Meets “Proficient” criteria, and justification is well supported with examples

Identifies ethical considerations of changes recommended and justifies recommendations

Identifies ethical considerations of changes recommended, but does not justify

recommendations

Does not identify ethical considerations

11.5

Prepare a Report: Recommendation

Meets “Proficient” criteria, and recommendation is supported

with evidence

Develops recommendation and describes factors that were taken

into consideration

Develops recommendation, but does not describe factors that

were taken into consideration

Does not develop a recommendation

11.5

Prepare a Report: Implications

Meets “Proficient” criteria and demonstrates a nuanced understanding of the relationship

between ethical views and implications

Identifies ethical considerations and implications of decision

Identifies ethical considerations or implications of decision, but not both

Does not identify ethical consideration or implications of decision

11.5

Prepare a Report: Impact

Meets “Proficient” criteria and demonstrates awareness of business operations

Describes how decision was reached and how it will impact the efficiencies of operation

Describes how decision was reached, but does not address how it will impact efficiencies of

operation

Does not describe how decision was reached

11.5

 

Prepare a Report: Suggestions

Meets “Proficient” criteria, and suggestions incorporate a well- rounded view of the business

Identifies suggestions for nonfinancial performance measures the company should adopt and lists the pros and cons

of each

Identifies suggestions for nonfinancial performance measures the company should adopt, but does not list the pros

and cons of each

Does not identify suggestions for nonfinancial performance measures the company should adopt

11.5

Prepare a Report: Considerations

Meets “Proficient” criteria, and explanation is exceptionally clear and contextualized

Identifies the ethical considerations of suggestions and explains the significance of

each

Identifies the ethical considerations of suggestions, but does not explain the

significance of each

Does not identify the ethical considerations of suggestions

11.5

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization

and is presented in a professional and easy-to-read format

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization

that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization

that prevent understanding of ideas

8

Earned Total

100%

 

 

Available solutions
  • ACC 202 Final Project Part I and II Guidelines and Rubric
    $45.00

    ACC 202 Final Project Part I Guidelines and Rubric Overview To be successful, all businesses must perform periodic assessments to determine the efficiency of operations. Whether you are an owner, a manager, or a front- line employee, at some time you will be affected by a budget. Preparing a budget and analyzing the results of operations in relation to the budget will help you understand how to use financial information to evaluate the effectiveness of an organization’s operations. The process will also help you determine the reasons operations do not always go as planned and make decisions on changes that might need to be made to make the organization, or just your own department, more efficient. In the Budget Workbook, you will use course-provided information to 1) prepare an operating budget, 2) compare actual operational results to the budgets to determine financial strengths and weaknesses, and 3) make decisions about operational changes that need to be made. T

    Submitted on: 30 Sep, 2017 03:42:38 This tutorial has not been purchased yet .
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