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$74,760 Material, Labor, and Variable Overhead Variances The following summarized manufacturing data relate to Thomas Corporation's April operations, during which 2,000 finished units of product were produced. Normal monthly capacity is 1,100 direct labor hours. Standard Units Costs Total Actual Costs Direct material Standard (2 lb. @ $17.00/lb.) $34 Actual (4,200 lb. @ $17.80/lb.) Direct labor Standard (0.5 hr. @ $32/hr.) $16 Actual (950 hrs. @ $31/hr.) 29,450 Variable overhead Standard (0.5 hr. @ $14/hr.) $7 Actual 14,450 Total $57 $118,660 Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ Split cost: $ Standard cost: $ Materials price $ Materials efficiency $ Labor Variances Determine the following variances: Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable. Materials Variances Actual cost: $ Split cost: $ Standard cost: $ Materials price Materials efficiency $ Labor Variances Actual cost: Split cost: Standard cost: $ Labor rate Labor efficiency $ Variable Overhead Variances Actual cost: Split cost: $ Standard cost: $ Variable overhead spending $ Variable overhead efficiency $ Check Assigning Traceable Fixed Expenses Selected data for Miller Company, which operates three departments, follow: Department A Department B Department Inventory $64,000 $230,400 $89,600 Equipment (average cost) $576,000 $345,600 $230,400 Payroll $810,000 $720,000 $270,000 Square feet of floor space 18,000 9,000 3,000 During the year, the company's fixed expenses included the following: Depreciation on equipment Real estate taxes Personal property taxes (on inventory and equipment) Personnel department expenses $64,000 19,200 30,720 40,000 Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments. Do not round until your final answer. Round final answer to the nearest whole number. Department A Department B Department Depreciation $ Real estate taxes Personal property taxes Personnel dept. expenses Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets: Las Vegas Dallas Tampa Net Income Assets $1,260,000 $4,000,000 1,500,000 8,000,000 2.340,000 12,000,000 a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI. Round ROI to the nearest whole percentage. Rank Las Vegas ROI 096 X 1 096 X 3 096 x 2 Dallas Tampa b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income. ROI Rank Las Vegas $ 0 X 3 Dallas 0 x 2 Tampa 0 x 1
