Business Finance Homework Help

In Part 1, the scenario involves an altercation over the percentage of completion of the department’s ending inventory in which you’ll weigh in with calculations and comments on the matter. Although this assessment is required it will not be graded. The value of the assessment is to help build authentic application and prepare you to complete Part 2.

In Part 2, the scenario puts you in charge of preparing a budget for the Redmond Management Association annual public relations luncheon.

You will be able to submit this assessment after you have completed the Competency 2 Reflection. Save and upload each part of the assessment as a separate file and title the files so it’s clear to see what part of the assessment they serve. Include your name in your documents on the first page, upper left. 

Although this part of the assessment is not graded, you still need to complete and submit it. This activity is meant to build your knowledge in preparation to complete Part 2. 

Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40% complete.

Compute the equivalent cost per unit, assuming the ending inventory is considered to be 60% complete.

Write a 350-word summary of your calculations and findings. Comment on Mr. Sawyer’s motives for establishing the percentage of completion at 60% rather than 40%.

Part 2

Use Excel® – showing all work and formulas – to complete the following:

• Prepare a flexible budget. 
• Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the flexible budget.
• Compute flexible budget variances by comparing the flexible budget with the actual results.
• Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the meal cost. He told you that the added dessert caused the meal cost to be $4,810 ($25,110 – $20,300) over budget. He added, “I could expect a couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next budget meeting of the budget committee, I want you to explain what happened.”
• Create a 6- to 8-slide presentation for the budget committee meeting showing your findings and recommendations from your computations. Complete the following in your presentation:
  • Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget.
  • Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual results.
  • Justify the favorable or unfavorable budget variances.
  • Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.
  • Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your recommendations.