# STAT 200 OL1 / US1 Sections Final Exam Spring 2015

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 1 of 6

STAT 200

OL1 / US1 Sections

Final Exam

Spring 2015

The final exam will be posted at 12:01 am on March 6, and it is

due at 11:59 pm on March 8, 2015. Eastern Time is our

reference time.

This is an open-book exam. You may refer to your text and other course

materials as you work on the exam, and you may use a calculator. You must

complete the exam individually. Neither collaboration nor consultation with

others is allowed.

Answer all 25 questions. Make sure your answers are as complete as possible.

Show all of your work and reasoning. In particular, when there are

calculations involved, you must show how you come up with your answers

with critical work and/or necessary tables. Answers that come straight from

programs or software packages will not be accepted.

Record your answers and work on the separate answer sheet provided.

This exam has 250 total points.

You must include the Honor Pledge on the title page of your submitted final

exam. Exams submitted without the Honor Pledge will not be accepted.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 2 of 6

1. True or False. Justify for full credit. (25 pts)

(a) The normal distribution curve is always symmetric to its mean.

(b) If the variance from a data set is zero, then all the observations in this data set are

identical.

(c)

cc

.ofcomplementtheis where,1)AND( AAAAP

(d) In a hypothesis testing, if the p-value is less than the significance level α, we do not

have sufficient evidence to reject the null hypothesis.

(e) The volume of milk in a jug of milk is 128 oz. The value 128 is from a discrete data

set.

Refer to the following frequency distribution for Questions 2, 3, 4, and 5. Show all work. Just the

answer, without supporting work, will receive no credit.

A random sample of 25 customers was chosen in UMUC MiniMart between 3:00 and 4:00

PM on a Friday afternoon. The frequency distribution below shows the distribution for

checkout time (in minutes).

Checkout Time (in minutes) Frequency Relative Frequency

1.0 - 1.9 2

2.0 - 2.9 8

3.0 - 3.9

4.0 - 5.9 5

Total 25

2. Complete the frequency table with frequency and relative frequency. (5 pts)

3. What percentage of the checkout times was less than 3 minutes? (5 pts)

4. In what class interval must the median lie? Explain your answer. (5 pts)

5. Assume that the largest observation in this dataset is 5.8. Suppose this observation were

incorrectly recorded as 8.5 instead of 5.8. Will the mean increase, decrease, or remain

the same? Will the median increase, decrease or remain the same? Why? (5 pts)

6. A random sample of STAT200 weekly study times in hours is as follows:

2 15 15 18 30

Find the sample standard deviation. (Round the answer to two decimal places. Show all work.

Just the answer, without supporting work, will receive no credit.) (10 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 3 of 6

Refer to the following information for Questions 7, 8, and 9. Show all work. Just the answer,

without supporting work, will receive no credit.

A fair coin is tossed 4 times.

7. How many outcomes are there in the sample space? (5 pts)

8. What is the probability that the third toss is heads, given that the first toss is heads? (10 pts)

9. Let A be the event that the first toss is heads, and B be the event that the third toss is heads. Are A

and B independent? Why or why not? (5 pts)

Refer to the following situation for Questions 10, 11, and 12.

The boxplots below show the real estate values of single family homes in two neighboring

cities, in thousands of dollars.

For each question, give your answer as one of the following: (a) Tinytown; (b) BigBurg; (c) Both

cities have the same value requested; (d) It is impossible to tell using only the given information.

Then explain your answer in each case. (5 pts each)

10. Which city has greater variability in real estate values?

11. Which city has the greater percentage of households with values $85,000 and over?

12. Which city has a greater percentage of homes with real estate values between $55,000

and $85,000?

Refer to the following information for Questions 13 and 14. Show all work. Just the answer,

without supporting work, will receive no credit.

There are 1000 juniors in a college. Among the 1000 juniors, 200 students are taking

STAT200, and 100 students are taking PSYC300. There are 50 students taking both

courses.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 4 of 6

13. What is the probability that a randomly selected junior is taking at least one of these two

courses? (10 pts)

14. What is the probability that a randomly selected junior is taking PSYC300, given that

he/she is taking STAT200? (10 pts)

15. UMUC Stat Club is sending a delegate of 2 members to attend the 2015 Joint Statistical Meeting

in Seattle. There are 10 qualified candidates. How many different ways can the delegate be

selected? (5 pts)

16. Imagine you are in a game show. There are 4 prizes hidden on a game board with 10

spaces. One prize is worth $100, another is worth $50, and two are worth $10. You have to pay

$20 to the host if your choice is not correct. Let the random variable x be the winning. Show all

work. Just the answer, without supporting work, will receive no credit.

(a) What is your expected winning in this game? (5 pts)

(b) Determine the standard deviation of x. (Round the answer to two decimal places) (10 pts)

17. Mimi just started her tennis class three weeks ago. On average, she is able to return 20%

of her opponent’s serves. Assume her opponent serves 8 times. Show all work. Just the answer,

without supporting work, will receive no credit.

(a) Let X be the number of returns that Mimi gets. As we know, the distribution of X is a binomial

probability distribution. What is the number of trials (n), probability of successes (p) and

probability of failures (q), respectively? (5 pts)

(b) Find the probability that that she returns at least 1 of the 8 serves from her opponent. (10 pts)

(c) How many serves can she expect to return? (5 pts)

Refer to the following information for Questions 18, 19, and 20. Show all work. Just the answer,

without supporting work, will receive no credit.

The IQ scores are normally distributed with a mean of 100 and a standard deviation of 15.

18. What is the probability that a randomly person has an IQ between 85 and 115? (10 pts)

19. Find the 90

th

percentile of the IQ distribution. (5 pts)

20. If a random sample of 100 people is selected, what is the standard deviation of the sample mean?

(5 pts)

21. A random sample of 100 light bulbs has a mean lifetime of 3000 hours. Assume that the

population standard deviation of the lifetime is 500 hours. Construct a 95% confidence interval

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 5 of 6

estimate of the mean lifetime. Show all work. Just the answer, without supporting work, will

receive no credit. (10 pts)

22. Consider the hypothesis test given by

0

1

5.0:

5.0:

pH

pH

In a random sample of 225 subjects, the sample proportion is found to be

51.0

ˆ

p

.

(a) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(b) Determine the p-value for this test. Show all work; writing the correct P-value,

without supporting work, will receive no credit.

0.01

level?

Explain. (15 pts)

(c) Is there sufficient evidence to justify the rejection of

H

at the

0

23. A new prep class was designed to improve AP statistics test scores. Five students were

selected at random. The numbers of correct answers on two practice exams were

recorded; one before the class and one after. The data recorded in the table below. We

want to test if the numbers of correct answers, on average, are higher after the class.

Number of Correct Answers

Subject Before the class After the class

1 12 14

2 15 18

3 9 11

4 12 10

5 12 12

Is there evidence to suggest that the mean number of correct answers after the class

exceeds the mean number of correct answers before the class?

Assume we want to use a 0.01 significance level to test the claim.

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that the mean number of correct

answers after the class exceeds the mean number of correct answers before the class?

Justify your conclusion. (20 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 6 of 6

24. A random sample of 4 professional athletes produced the following data where x is the

number of endorsements the player has and y is the amount of money made (in millions of

dollars).

x

0 1 3 5

y

3 2 3 8

(a) Find an equation of the least squares regression line. Show all work; writing the correct

equation, without supporting work, will receive no credit. (15 pts)

(b) Based on the equation from part (a), what is the predicted value of y if x = 4? Show all

work and justify your answer. (5 pts)

25. Randomly selected nonfatal occupational injuries and illnesses are categorized according

to the day of the week that they first occurred, and the results are listed below. Use a 0.05

significance level to test the claim that such injuries and illnesses occur with equal

frequency on the different days of the week. Show all work and justify your answer.

Day Mon Tue Wed Thu Fri

Number 22 22 20 19 17

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that such injuries and illnesses occur

with equal frequency on the different days of the week? Justify your answer.

(15 pts)

STAT 200

OL1 / US1 Sections

Final Exam

Spring 2015

The final exam will be posted at 12:01 am on March 6, and it is

due at 11:59 pm on March 8, 2015. Eastern Time is our

reference time.

This is an open-book exam. You may refer to your text and other course

materials as you work on the exam, and you may use a calculator. You must

complete the exam individually. Neither collaboration nor consultation with

others is allowed.

Answer all 25 questions. Make sure your answers are as complete as possible.

Show all of your work and reasoning. In particular, when there are

calculations involved, you must show how you come up with your answers

with critical work and/or necessary tables. Answers that come straight from

programs or software packages will not be accepted.

Record your answers and work on the separate answer sheet provided.

This exam has 250 total points.

You must include the Honor Pledge on the title page of your submitted final

exam. Exams submitted without the Honor Pledge will not be accepted.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 2 of 6

1. True or False. Justify for full credit. (25 pts)

(a) The normal distribution curve is always symmetric to its mean.

(b) If the variance from a data set is zero, then all the observations in this data set are

identical.

(c)

cc

.ofcomplementtheis where,1)AND( AAAAP

(d) In a hypothesis testing, if the p-value is less than the significance level α, we do not

have sufficient evidence to reject the null hypothesis.

(e) The volume of milk in a jug of milk is 128 oz. The value 128 is from a discrete data

set.

Refer to the following frequency distribution for Questions 2, 3, 4, and 5. Show all work. Just the

answer, without supporting work, will receive no credit.

A random sample of 25 customers was chosen in UMUC MiniMart between 3:00 and 4:00

PM on a Friday afternoon. The frequency distribution below shows the distribution for

checkout time (in minutes).

Checkout Time (in minutes) Frequency Relative Frequency

1.0 - 1.9 2

2.0 - 2.9 8

3.0 - 3.9

4.0 - 5.9 5

Total 25

2. Complete the frequency table with frequency and relative frequency. (5 pts)

3. What percentage of the checkout times was less than 3 minutes? (5 pts)

4. In what class interval must the median lie? Explain your answer. (5 pts)

5. Assume that the largest observation in this dataset is 5.8. Suppose this observation were

incorrectly recorded as 8.5 instead of 5.8. Will the mean increase, decrease, or remain

the same? Will the median increase, decrease or remain the same? Why? (5 pts)

6. A random sample of STAT200 weekly study times in hours is as follows:

2 15 15 18 30

Find the sample standard deviation. (Round the answer to two decimal places. Show all work.

Just the answer, without supporting work, will receive no credit.) (10 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 3 of 6

Refer to the following information for Questions 7, 8, and 9. Show all work. Just the answer,

without supporting work, will receive no credit.

A fair coin is tossed 4 times.

7. How many outcomes are there in the sample space? (5 pts)

8. What is the probability that the third toss is heads, given that the first toss is heads? (10 pts)

9. Let A be the event that the first toss is heads, and B be the event that the third toss is heads. Are A

and B independent? Why or why not? (5 pts)

Refer to the following situation for Questions 10, 11, and 12.

The boxplots below show the real estate values of single family homes in two neighboring

cities, in thousands of dollars.

For each question, give your answer as one of the following: (a) Tinytown; (b) BigBurg; (c) Both

cities have the same value requested; (d) It is impossible to tell using only the given information.

Then explain your answer in each case. (5 pts each)

10. Which city has greater variability in real estate values?

11. Which city has the greater percentage of households with values $85,000 and over?

12. Which city has a greater percentage of homes with real estate values between $55,000

and $85,000?

Refer to the following information for Questions 13 and 14. Show all work. Just the answer,

without supporting work, will receive no credit.

There are 1000 juniors in a college. Among the 1000 juniors, 200 students are taking

STAT200, and 100 students are taking PSYC300. There are 50 students taking both

courses.

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 4 of 6

13. What is the probability that a randomly selected junior is taking at least one of these two

courses? (10 pts)

14. What is the probability that a randomly selected junior is taking PSYC300, given that

he/she is taking STAT200? (10 pts)

15. UMUC Stat Club is sending a delegate of 2 members to attend the 2015 Joint Statistical Meeting

in Seattle. There are 10 qualified candidates. How many different ways can the delegate be

selected? (5 pts)

16. Imagine you are in a game show. There are 4 prizes hidden on a game board with 10

spaces. One prize is worth $100, another is worth $50, and two are worth $10. You have to pay

$20 to the host if your choice is not correct. Let the random variable x be the winning. Show all

work. Just the answer, without supporting work, will receive no credit.

(a) What is your expected winning in this game? (5 pts)

(b) Determine the standard deviation of x. (Round the answer to two decimal places) (10 pts)

17. Mimi just started her tennis class three weeks ago. On average, she is able to return 20%

of her opponent’s serves. Assume her opponent serves 8 times. Show all work. Just the answer,

without supporting work, will receive no credit.

(a) Let X be the number of returns that Mimi gets. As we know, the distribution of X is a binomial

probability distribution. What is the number of trials (n), probability of successes (p) and

probability of failures (q), respectively? (5 pts)

(b) Find the probability that that she returns at least 1 of the 8 serves from her opponent. (10 pts)

(c) How many serves can she expect to return? (5 pts)

Refer to the following information for Questions 18, 19, and 20. Show all work. Just the answer,

without supporting work, will receive no credit.

The IQ scores are normally distributed with a mean of 100 and a standard deviation of 15.

18. What is the probability that a randomly person has an IQ between 85 and 115? (10 pts)

19. Find the 90

th

percentile of the IQ distribution. (5 pts)

20. If a random sample of 100 people is selected, what is the standard deviation of the sample mean?

(5 pts)

21. A random sample of 100 light bulbs has a mean lifetime of 3000 hours. Assume that the

population standard deviation of the lifetime is 500 hours. Construct a 95% confidence interval

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 5 of 6

estimate of the mean lifetime. Show all work. Just the answer, without supporting work, will

receive no credit. (10 pts)

22. Consider the hypothesis test given by

0

1

5.0:

5.0:

pH

pH

In a random sample of 225 subjects, the sample proportion is found to be

51.0

ˆ

p

.

(a) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(b) Determine the p-value for this test. Show all work; writing the correct P-value,

without supporting work, will receive no credit.

0.01

level?

Explain. (15 pts)

(c) Is there sufficient evidence to justify the rejection of

H

at the

0

23. A new prep class was designed to improve AP statistics test scores. Five students were

selected at random. The numbers of correct answers on two practice exams were

recorded; one before the class and one after. The data recorded in the table below. We

want to test if the numbers of correct answers, on average, are higher after the class.

Number of Correct Answers

Subject Before the class After the class

1 12 14

2 15 18

3 9 11

4 12 10

5 12 12

Is there evidence to suggest that the mean number of correct answers after the class

exceeds the mean number of correct answers before the class?

Assume we want to use a 0.01 significance level to test the claim.

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that the mean number of correct

answers after the class exceeds the mean number of correct answers before the class?

Justify your conclusion. (20 pts)

STAT200 : Introduction to Statistics Final Examination, Spring 2015 OL1 / US1 Page 6 of 6

24. A random sample of 4 professional athletes produced the following data where x is the

number of endorsements the player has and y is the amount of money made (in millions of

dollars).

x

0 1 3 5

y

3 2 3 8

(a) Find an equation of the least squares regression line. Show all work; writing the correct

equation, without supporting work, will receive no credit. (15 pts)

(b) Based on the equation from part (a), what is the predicted value of y if x = 4? Show all

work and justify your answer. (5 pts)

25. Randomly selected nonfatal occupational injuries and illnesses are categorized according

to the day of the week that they first occurred, and the results are listed below. Use a 0.05

significance level to test the claim that such injuries and illnesses occur with equal

frequency on the different days of the week. Show all work and justify your answer.

Day Mon Tue Wed Thu Fri

Number 22 22 20 19 17

(a) Identify the null hypothesis and the alternative hypothesis.

(b) Determine the test statistic. Show all work; writing the correct test statistic, without

supporting work, will receive no credit.

(c) Determine the p-value. Show all work; writing the correct critical value, without

supporting work, will receive no credit.

(d) Is there sufficient evidence to support the claim that such injuries and illnesses occur

with equal frequency on the different days of the week? Justify your answer.

(15 pts)

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Using the recommendation memo and network diagram, develop a high-level plan for implementing the changes and mitigating vulnerabilities and convergence issues. The high-level plan should include all the system development life cycle (SDLC) gates/decision points and all relevant tasks. Describe and relate the implementation solution to CIA and incorporate, people, processes and technology to this plan.

This is a combination of a paper and a detailed list of steps and resources that you would follow to implement and complete this project. Think about all of the actions, resources, and tasks that you would need in order to effect a successful implementation. These should also be included as part of the plan. The instructor may provide a template to use with this assignment. The minimum structure for this assignment is below:

• INTRODUCTION

o Purpose of Plan

• GOALS AND OBJECTIVES

o Business Goals and Objectives

o Project Goals and Objectives

• SCOPE

o Scope Definition

o Items Beyond Scope

• PROJECTED EXPENSES

o System Development Life Cycle/Schedule

o Milestones

• ASSUMPTIONS

o Project Assumptions

• CONSTRAINTS

o Project Constraints

o Critical Project Barriers

The Plan will be a minimum 5 page, double-spaced paper using Times New Roman 12 font and APA style formatting for citations and references. It will also include a minimum of 5 references. The Title/Cover page, illustrations (tables/charts/graphs), network diagram, and references are not part of the page count but are required for the assignment. The grading rubric provides additional details as to what should be included in the paper. Your instructor may provide an APA style template to use for this paper.

This is a combination of a paper and a detailed list of steps and resources that you would follow to implement and complete this project. Think about all of the actions, resources, and tasks that you would need in order to effect a successful implementation. These should also be included as part of the plan. The instructor may provide a template to use with this assignment. The minimum structure for this assignment is below:

• INTRODUCTION

o Purpose of Plan

• GOALS AND OBJECTIVES

o Business Goals and Objectives

o Project Goals and Objectives

• SCOPE

o Scope Definition

o Items Beyond Scope

• PROJECTED EXPENSES

o System Development Life Cycle/Schedule

o Milestones

• ASSUMPTIONS

o Project Assumptions

• CONSTRAINTS

o Project Constraints

o Critical Project Barriers

The Plan will be a minimum 5 page, double-spaced paper using Times New Roman 12 font and APA style formatting for citations and references. It will also include a minimum of 5 references. The Title/Cover page, illustrations (tables/charts/graphs), network diagram, and references are not part of the page count but are required for the assignment. The grading rubric provides additional details as to what should be included in the paper. Your instructor may provide an APA style template to use for this paper.

Prepare a budget and analyze 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:

· Communicate budget planning to internal stakeholders for strategic planning

· Apply costing methods to production for supporting budget planning and decision making

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 2015. Forecasted sales in units are as follows: July, 18,000; August, 22,000; September, 20,000; October, 24,000. The product’s selling price is $18.00 per unit and its total product cost is $14.35 per unit.

The June 30 finished goods inventory is 16,800 units.

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.

The June 30 raw materials inventory is 4,600 units. The budgeted September 30 raw materials inventory is 1,980 units. Raw materials cost $7.75 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.

Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour.

Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $1.35 per unit produced. Depreciation of $20,000 per month is treated as fixed factory overhead.

Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable.

Sales representatives’ commissions are 12% of sales and are paid in the month of the sales. The sales manager’s monthly salary is $3,750 per month.

Specifically, the following critical elements must be addressed:

Operating Budget

Create an operating budget

a) Prepare a sales budget. Ensure accuracy of data.

b) Discuss your sales budget line items. Why have you made the choices you have made? What information informed your decision for each item?

c) Prepare a production budget. Ensure the accuracy of your data.

d) Discuss your production budget line items. Why have you made the choices you have made? What information informed your decision for each item?

e) Prepare a manufacturing budget. Ensure the accuracy of your data.

f) Discuss your manufacturing budget line items. Why have you made the choices you have made? What information informed your decision for each item?

g) Prepare a selling expense budget. Ensure the accuracy of your data.

h) Discuss your selling expense budget line items. Why have you made the choices you have made? What information informed your decision for each item?

i) Prepare a general and administrative expense budget using appropriate costing methods.

j) Discuss your line items. Why have you made the choices you have made? What information informed your decision for each item?

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.

a) Develop a variance analysis including a budget variance performance report and appropriate variances for materials, labor, and overhead.

b) Discuss each variance. What does the variance tell you?

c) What needs to be investigated to determine the reason for the variance? Why?

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:

· Communicate budget planning to internal stakeholders for strategic planning

· Apply costing methods to production for supporting budget planning and decision making

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 2015. Forecasted sales in units are as follows: July, 18,000; August, 22,000; September, 20,000; October, 24,000. The product’s selling price is $18.00 per unit and its total product cost is $14.35 per unit.

The June 30 finished goods inventory is 16,800 units.

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.

The June 30 raw materials inventory is 4,600 units. The budgeted September 30 raw materials inventory is 1,980 units. Raw materials cost $7.75 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.

Each finished unit requires 0.50 hours of direct labor at a rate of $16 per hour.

Overhead is allocated based on direct labor hours. The predetermined variable overhead rate is $1.35 per unit produced. Depreciation of $20,000 per month is treated as fixed factory overhead.

Monthly general and administrative expenses include $12,000 administrative salaries and 0.9% monthly interest on the long-term note payable.

Sales representatives’ commissions are 12% of sales and are paid in the month of the sales. The sales manager’s monthly salary is $3,750 per month.

Specifically, the following critical elements must be addressed:

Operating Budget

Create an operating budget

a) Prepare a sales budget. Ensure accuracy of data.

b) Discuss your sales budget line items. Why have you made the choices you have made? What information informed your decision for each item?

c) Prepare a production budget. Ensure the accuracy of your data.

d) Discuss your production budget line items. Why have you made the choices you have made? What information informed your decision for each item?

e) Prepare a manufacturing budget. Ensure the accuracy of your data.

f) Discuss your manufacturing budget line items. Why have you made the choices you have made? What information informed your decision for each item?

g) Prepare a selling expense budget. Ensure the accuracy of your data.

h) Discuss your selling expense budget line items. Why have you made the choices you have made? What information informed your decision for each item?

i) Prepare a general and administrative expense budget using appropriate costing methods.

j) Discuss your line items. Why have you made the choices you have made? What information informed your decision for each item?

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.

a) Develop a variance analysis including a budget variance performance report and appropriate variances for materials, labor, and overhead.

b) Discuss each variance. What does the variance tell you?

c) What needs to be investigated to determine the reason for the variance? Why?

Project Deliverable 6: Final Project Plan

Due Week 10 and worth 200 points

This assignment consists of four (4) sections: a written project plan, a revised business requirements document, a project plan PowerPoint presentation, and the finalized project plan. You must submit the four (4) sections as separate files for the completion of this assignment. Label each file name according to the section of the assignment it is written for. Additionally, you may create and / or assume all necessary assumptions needed for the completion of this assignment.

While taking all business and project parameters into consideration, make quality assumptions to support the following requirements.

Section 1: Written Project Plan

You are now in the final stage of the project plan development. All previous documentation should be combined into one (1) document that will serve as the statement of work for the project. Your goal is to have the project approved by the executive team. The project plan should be very detailed, which is appropriate to accomplish the monumental task of implementation; however, the executive team is only interested in a thirty (30) minute summation. Therefore, you also must create a compelling executive summary that is supported by your detail that convinces the executive team that it should move forward with your solution.

1. Develop a thirty to forty (30-40) page project plan in which you:

a. Write a five to ten (5-10) page executive summary in which you provide a high-level technical overview of your project where you address the following:

i. Describe the scope of the project and control measures.

ii. Describe the goals and objectives of the project.

iii. Give a detailed, realistically estimated cost analysis of the entire project, including technical resources (human capital) that may be needed to complete the project.

iv. Relate the value of the project plan solution to the competitive advantage that information technology will afford the organization.

v. Provide all aspects of the information technology implementation into the project plan.

vi. Recommend solution providers who can assist with development and implementation. Include a cost analysis of at least three (3) providers.

b. Combine all previous documentation for Project Deliverables 1-5 in which you:

i. Provide all aspects of the information technology implementation into the project plan.

ii. Revise the documentation based on feedback from the earlier evaluation of the deliverable.

c. Use at least five (5) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

• Include charts or diagrams created in MS Visio and MS Project as appendix of the Word document. Make reference of these files in the body of the Word document.

Section 2: Revised Business Requirements Document

2. Document all revisions made to the written project plan in the Document Control section of the business requirements document from Project Deliverable 2: Business Requirements. Note: This documentation must outline the revisions made to the previous deliverables required in Section 1: Written Project Plan.

Section 3: Project Plan PowerPoint Presentation

Additional to your detailed executive summary you must present your findings to the executive team and the venture capital group that along with the executive summary will convince the group that your solution is optimal.

3. Create a ten to fifteen (10-15) slide PowerPoint presentation in which you:

a. Illustrate the concepts from the executive summary in Section 1 of this assignment.

b. Create bulleted speaking notes for your presentation to the executive board in the Notes section of the PowerPoint. Note: You may create or assume any fictitious names, data, or scenarios that have not been established in this assignment for a realistic flow of communication.

c. Use a professional technically written style to graphically convey the information.

Section 4: Finalized Project Plan

Use Microsoft project to:

4. Finalize your project plan from Project Deliverable 5: Network Infrastructure and Security to include all necessary changes in assumptions, tasks, and / or subtasks.

The specific course learning outcomes associated with this assignment are:

• Describe the methods and best practices in implementing process change in IT organizations.

• Describe the role and methods of technology-induced process improvement in organizations.

• Develop an integrative technology project plan to address and solve a proposed business problem.

• Use technology and information resources to research issues in information systems.

• Write clearly and concisely about leadership issues and strategic insight of the Information systems domain using proper writing mechanics and technical style conventions.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric.

Points: 200 Project Deliverable 6: Final Project Plan

Criteria

Unacceptable

Below 70% F

Fair

70-79% C

Proficient

80-89% B

Exemplary

90-100% A

Section 1: Written Project Plan

1ai. Describe the scope of the project and control measures.

Weight: 5% Did not submit or incompletely described the scope of the project and control measures. Partially described the scope of the project and control measures. Satisfactorily described the scope of the project and control measures. Thoroughly described the scope of the project and control measures.

1aii. Describe the goals and objectives of the project.

Weight: 5% Did not submit or incompletely described the goals and objectives of the project. Partially described the goals and objectives of the project. Satisfactorily described the goals and objectives of the project. Thoroughly described the goals and objectives of the project.

1aii. Give a detailed, realistically estimated cost analysis of the entire project, including human capital.

Weight: 10% Did not submit or incompletely gave a detailed, realistically estimated cost analysis of the entire project, including human capital. Partially gave a detailed, realistically estimated cost analysis of the entire project, including human capital. Satisfactorily gave a detailed, realistically estimated cost analysis of the entire project, including human capital. Thoroughly gave a detailed, realistically estimated cost analysis of the entire project, including human capital.

1aiv. Relate the value of the project plan solution to the competitive advantage that information technology will afford the organization.

Weight: 5% Did not submit or incompletely related the value of the project plan solution to the competitive advantage that information technology will afford the organization. Partially related the value of the project plan solution to the competitive advantage that information technology will afford the organization. Satisfactorily related the value of the project plan solution to the competitive advantage that information technology will afford the organization. Thoroughly related the value of the project plan solution to the competitive advantage that information technology will afford the organization.

1av. Provide all aspects of the information technology implementation into the project plan.

Weight: 5% Did not submit or incompletely provided all aspects of the information technology implementation into the project plan. Partially provided all aspects of the information technology implementation into the project plan. Satisfactorily provided all aspects of the information technology implementation into the project plan. Thoroughly provided all aspects of the information technology implementation into the project plan.

1avi. Recommend solution providers who can assist with development and implementation.

Weight: 10% Did not submit or incompletely recommended solution providers who can assist with development and implementation. Partially recommended solution providers who can assist with development and implementation. Satisfactorily recommended solution providers who can assist with development and implementation. Thoroughly recommended solution providers who can assist with development and implementation.

1bi. Combine all previous documentation for Project Deliverables 1-5 in which you provide all aspects of the information technology implementation into the project plan.

Weight: 5% Did not submit or incompletely combined all previous documentation for Project Deliverables 1-5 in which you provide all aspects of the information technology implementation into the project plan. Partially all previous documentation for Project Deliverables 1-5 in which you provide all aspects of the information technology implementation into the project plan. Satisfactorily all previous documentation for Project Deliverables 1-5 in which you provide all aspects of the information technology implementation into the project plan. Thoroughly all previous documentation for Project Deliverables 1-5 in which you provide all aspects of the information technology implementation into the project plan.

1bii. Combine all previous documentation for Project Deliverables 1-5 in which you revise the documentation based on feedback from the earlier evaluation of the deliverable.

Weight: 5% Did not submit or incompletely combined all previous documentation for Project Deliverables 1-5 in which you revise the documentation based on feedback from the earlier evaluation of the deliverable. Partially all previous documentation for Project Deliverables 1-5 in which you revise the documentation based on feedback from the earlier evaluation of the deliverable. Satisfactorily all previous documentation for Project Deliverables 1-5 in which you revise the documentation based on feedback from the earlier evaluation of the deliverable. Thoroughly all previous documentation for Project Deliverables 1-5 in which you revise the documentation based on feedback from the earlier evaluation of the deliverable.

1c. 5 references

Weight: 5% No references provided Does not meet the required number of references; some references poor quality choices. Meets number of required references; all references high quality choices. Exceeds number of required references; all references high quality choices.

Section 2: Revised Business Requirements Document

2. Document all revisions made to the written project plan in the Document Control section of the business requirements document from Project Deliverable 2: Business Requirements.

Weight: 5% Did not submit or incompletely documented all revisions made to the written project plan in the Document Control section of the business requirements document from Project Deliverable 2: Business Requirements. Partially documented all revisions made to the written project plan in the Document Control section of the business requirements document from Project Deliverable 2: Business Requirements. Satisfactorily documented all revisions made to the written project plan in the Document Control section of the business requirements document from Project Deliverable 2: Business Requirements. Thoroughly documented all revisions made to the written project plan in the Document Control section of the business requirements document from Project Deliverable 2: Business Requirements.

Section 3: Project Plan PowerPoint Presentation

3a. Create a ten to fifteen (10-15) slide PowerPoint presentation in which you illustrate the concepts from the executive summary in Section 1 of this assignment.

Weight: 5% Did not submit or incompletely created a ten to fifteen (ten to fifteen (10-15)) slide PowerPoint presentation in which you illustrated the concepts from the executive summary in Section 1 of this assignment. Partially created a ten to fifteen (10-15) slide PowerPoint presentation in which you illustrated the concepts from the executive summary in Section 1 of this assignment. Satisfactorily created a ten to fifteen (10-15) slide PowerPoint presentation in which you illustrated the concepts from the executive summary in Section 1 of this assignment. Thoroughly created a ten to fifteen (10-15) slide PowerPoint presentation in which you illustrated the concepts from the executive summary in Section 1 of this assignment.

3b. Create a ten to fifteen (10-15) slide PowerPoint presentation in which you create bulleted speaking notes for your presentation to the executive board in the Notes section of the PowerPoint.

Weight: 5% Did not submit or incompletely created a ten to fifteen (10-15) slide PowerPoint presentation in which you created bulleted speaking notes for your presentation to the executive board in the Notes section of the PowerPoint. Partially created a ten to fifteen (10-15) slide PowerPoint presentation in which you created bulleted speaking notes for your presentation to the executive board in the Notes section of the PowerPoint. Satisfactorily created a ten to fifteen (10-15) slide PowerPoint presentation in which you created bulleted speaking notes for your presentation to the executive board in the Notes section of the PowerPoint. Thoroughly created a ten to fifteen (10-15) slide PowerPoint presentation in which you created bulleted speaking notes for your presentation to the executive board in the Notes section of the PowerPoint.

3c. Create a ten to fifteen (10-15) slide PowerPoint presentation in which you use a professional technically written style to graphically convey the information.

Weight: 5% Did not submit or incompletely created a ten to fifteen (10-15) slide PowerPoint presentation in which you used a professional technically written style to graphically convey the information. Partially created a ten to fifteen (10-15) slide PowerPoint presentation in which you used a professional technically written style to graphically convey the information. Satisfactorily created a ten to fifteen (10-15) slide PowerPoint presentation in which you used a professional technically written style to graphically convey the information. Thoroughly created a ten to fifteen (10-15) slide PowerPoint presentation in which you used a professional technically written style to graphically convey the information.

Section 4: Finalized Project Plan

4. Finalize your project plan from Project Deliverable 5: Network Infrastructure and Security to include all necessary changes in assumptions, tasks, and / or subtasks.

Weight: 15% Did not submit or incompletely finalized your project plan from Project Deliverable 5: Network Infrastructure and Security to include all necessary changes in assumptions, tasks, and / or subtasks. Partially finalized your project plan from Project Deliverable 5: Network Infrastructure and Security to include all necessary changes in assumptions, tasks, and / or subtasks. Satisfactorily finalized your project plan from Project Deliverable 5: Network Infrastructure and Security to include all necessary changes in assumptions, tasks, and / or subtasks. Thoroughly finalized your project plan from Project Deliverable 5: Network Infrastructure and Security to include all necessary changes in assumptions, tasks, and / or subtasks.

5. Clarity, writing mechanics, and formatting requirements

Weight: 10% More than 6 errors present 5-6 errors present 3-4 errors present 0-2 errors present