1 Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below RUNQUIST COMPANY Budget Performance ReportVice President, Production For the Month Ended April 30 Plant Budget Actual Over Budget (Under) Budget Daytona $2,300,000 $2,287,900 $(12,100) Little Rock 3,000,000 2,988,400 (11,600) Oxford (g) (h) (i) $(j) $(k) $(l) $(23,700) RUNQUIST COMPANY Budget Performance ReportPlant Manager, Oxford Plant For the Month Ended April 30 Department Budget Actual Over Budget (Under) Budget Condenser Assembly $(a) $(b) $(c) Electronic Assembly 700,000 703,200 3,200 Final Assembly 525,000 516,600 $(8,400) $(d) $(e) $(f) $(8,400) RUNQUIST COMPANY Budget Performance ReportSupervisor, Condenser Assembly For the Month Ended April 30 Department Budget Actual Over Budget (Under) Budget Factory wages $82,000 $95,500 $13,500 Materials 120,000 115,300 $(4,700) Power and light 45,000 49,950 4,950 Maintenance 28,000 37,200 9,200 $275,000 $297,950 $27,650 $(4,700) a Complete the budget performance reports by determining the correct amounts for the lettered spaces (a l ) found above a $fill in the blank g $fill in the blank b $fill in the blank h $fill in the blank c $fill in the blank i $fill in the blank d $fill in the blank j $fill in the blank e $fill in the blank k $fill in the blank f $fill in the blank l $fill in the blank b If you were composing a memo to Jeff Kitchens, Vice President of Production, explaining the performance of the Production Division for April, you might include the following The Oxford plant has experienced a budget overrun or surplus , while the Daytona and Little Rock plants have experienced a budget overrun or surplus The budget of the Oxford plant reveals that the Condenser Assembly Department caused the majority of the budget overrun or surplus The budget for the Condenser Assembly Department indicates that the budget overrun or surplus was caused by a combination of budget overruns in wages, power, and light, and maintenance or wages, power, and light that exceeded a budget surplus in materials 2 Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below RUNQUIST COMPANY Budget Performance ReportVice President, Production For the Month Ended April 30 Plant Budget Actual Over Budget (Under) Budget Daytona $396,700 $396,700 $0 Little Rock 285,600 282,700 (2,900) Oxford (g) (h) (i) $(j) $(k) $(l) $(2,900) RUNQUIST COMPANY Budget Performance ReportPlant Manager, Oxford Plant For the Month Ended April 30 Department Budget Actual Over Budget (Under) Budget Condenser Assembly $(a) $(b) $(c) Electronic Assembly 72,520 73,460 940 Final Assembly 116,760 115,830 $(930) $(d) $(e) $(f) $(930) RUNQUIST COMPANY Budget Performance ReportSupervisor, Condenser Assembly For the Month Ended April 30 Department Budget Actual Over Budget (Under) Budget Factory wages $22,180 $23,730 $1,550 Materials 72,460 71,950 $(510) Power and light 4,200 5,000 800 Maintenance 7,910 8,660 750 $106,750 $109,340 $3,100 $(510) a Complete the budget performance reports by determining the correct amounts for the lettered spaces (a l ) found above a $fill in the blank g $fill in the blank b $fill in the blank h $fill in the blank c $fill in the blank i $fill in the blank d $fill in the blank j $fill in the blank e $fill in the blank k $fill in the blank f $fill in the blank l $fill in the blank b If you were composing a memo to Jeff Kitchens, Vice President of Production, explaining the performance of the Production Division for April, you might include the following The Oxford plant has experienced a budget overrun or surplus , while the Little Rock plant has experienced a budget overrun or surplus The budget of the Oxford plant reveals that the Condenser Assembly Department caused the majority of the budget overrun or surplus The budget for the Condenser Assembly Department indicates that the budget overrun or surplus was caused by a combination of budget overruns in wages, power and light, and maintenance or wages, power, and light that exceeded a budget surplus in materials 3 The following data were summarized from the accounting records for Vintage Construction Company for the year ended October 31, 20Y3 Administrative expenses Sales Commercial Division $500,000 Commercial Division $6,250,000 Residential Division 250,000 Residential Division 1,875,000 Cost of goods sold Service department charges Commercial Division $3,800,000 Commercial Division $1,000,000 Residential Division 1,300,000 Residential Division 200,000 Prepare divisional income statements for Vintage Construction Company CHOOSE ONE Commercial Division Residential Division Administrative expenses Cash Operating income Sales Service department charges $ $ Administrative expenses Cash Cost of goods sold Net profit Service department charges Gross profit Net profit Operating income Sales Service department charges $ $ Administrative expenses Cost of goods sold Industrial division charges Net profit Residential division charges Cost of goods sold Operating income after service department charges Operating income before service department charges Residential division charges Sales $ $ Gross profit Net profit Operating loss Sales Service department charges Gross profit Net profit Operating income Operating loss Sales $ $ 4 The following data were summarized from the accounting records for Vintage Construction Company for the year ended October 31, 20Y3 Administrative expenses Sales Commercial Division $92,740 Commercial Division $772,800 Residential Division 86,550 Residential Division 432,770 Cost of goods sold Service department charges Commercial Division $510,050 Commercial Division $69,550 Residential Division 242,350 Residential Division 41,980 Prepare divisional income statements for Vintage Construction Company CHOOSE ONE Commercial Division Residential Division Administrative expenses Cash Operating income Sales Service department charges $ $ Administrative expenses Cash Cost of goods sold Net profit Service department charges Gross profit Gross sales Operating income Sales Service department charges $ $ Administrative expenses Commercial division charges Cost of goods sold Net profit Service department charges Cost of goods sold Operating income after service department charges Operating income before service department charges Residential division charges Sales $ $ Gain from operations Gross profit Operating loss Sales Service department charges Gross profit Net profit Operating income Operating loss Sales $ $ 5 The condensed income statement for the International Division of Valgenti Inc is as follows (assuming no service department charges) Sales $24,000,000 Cost of goods sold (14,100,000) Gross profit $ 9,900,000 Administrative expenses (6,060,000) Operating income $ 3,840,000 The manager of the International Division is considering ways to increase the return on investment a Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $20,000,000 of assets have been invested in the International Division Round your answers to one decimal place, if necessary Profit margin fill in the blank Investment turnover fill in the blank Rate of return on investment fill in the blank b If expenses could be reduced by $240,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the International Division Round your answers to one decimal place, if necessary Profit margin fill in the blank Investment turnover fill in the blank Rate of return on investment fill in the blank 6 The condensed income statement for the International Division of Valgenti Inc is as follows (assuming no service department charges) Sales $1,062,000 Cost of goods sold 477,900 Gross profit $584,100 Administrative expenses 371,700 Operating income $212,400 The manager of the International Division is considering ways to increase the return on investment a Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $1,770,000 of assets have been invested in the International Division Round investment turnover to one decimal place Profit margin fill in the blank Investment turnover fill in the blank Rate of return on investment fill in the blank b If expenses could be reduced by $53,100 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the International Division Round investment turnover to one decimal place Profit margin fill in the blank Investment turnover fill in the blank Rate of return on investment fill in the blank

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1. Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below. RUNQUIST COMPANY Budget Performance ReportVice President, Production For

1. Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below.

RUNQUIST COMPANY Budget Performance ReportVice President, Production For the Month Ended April 30
Plant	Budget	Actual	Over Budget	(Under) Budget
Daytona	$2,300,000	$2,287,900		$(12,100)
Little Rock	3,000,000	2,988,400		(11,600)
Oxford	(g)	(h)	(i)
	$(j)	$(k)	$(l)	$(23,700)

RUNQUIST COMPANY Budget Performance ReportPlant Manager, Oxford Plant For the Month Ended April 30
Department	Budget	Actual	Over Budget	(Under) Budget
Condenser Assembly	$(a)	$(b)	$(c)
Electronic Assembly	700,000	703,200	3,200
Final Assembly	525,000	516,600		$(8,400)
	$(d)	$(e)	$(f)	$(8,400)

RUNQUIST COMPANY Budget Performance ReportSupervisor, Condenser Assembly For the Month Ended April 30
Department	Budget	Actual	Over Budget	(Under) Budget
Factory wages	$82,000	$95,500	$13,500
Materials	120,000	115,300		$(4,700)
Power and light	45,000	49,950	4,950
Maintenance	28,000	37,200	9,200
	$275,000	$297,950	$27,650	$(4,700)

a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a. - l.) found above.

a.	$fill in the blank	g.	$fill in the blank
b.	$fill in the blank	h.	$fill in the blank
c.	$fill in the blank	i.	$fill in the blank
d.	$fill in the blank	j.	$fill in the blank
e.	$fill in the blank	k.	$fill in the blank
f.	$fill in the blank	l.	$fill in the blank

b. If you were composing a memo to Jeff Kitchens, Vice President of Production, explaining the performance of the Production Division for April, you might include the following:

The Oxford plant has experienced a budget overrun or surplus, while the Daytona and Little Rock plants have experienced a budget overrun or surplus. The budget of the Oxford plant reveals that the Condenser Assembly Department caused the majority of the budget overrun or surplus. The budget for the Condenser Assembly Department indicates that the budget

overrun or surplus was caused by a combination of budget overruns in wages, power, and light, and maintenance or wages, power, and light that exceeded a budget surplus in materials.

2. Partially completed budget performance reports for Runquist Company, a manufacturer of air conditioners, are provided below.

RUNQUIST COMPANY Budget Performance ReportVice President, Production For the Month Ended April 30
Plant	Budget	Actual	Over Budget	(Under) Budget
Daytona	$396,700	$396,700		$0
Little Rock	285,600	282,700		(2,900)
Oxford	(g)	(h)	(i)
	$(j)	$(k)	$(l)	$(2,900)

RUNQUIST COMPANY Budget Performance ReportPlant Manager, Oxford Plant For the Month Ended April 30
Department	Budget	Actual	Over Budget	(Under) Budget
Condenser Assembly	$(a)	$(b)	$(c)
Electronic Assembly	72,520	73,460	940
Final Assembly	116,760	115,830		$(930)
	$(d)	$(e)	$(f)	$(930)

RUNQUIST COMPANY Budget Performance ReportSupervisor, Condenser Assembly For the Month Ended April 30
Department	Budget	Actual	Over Budget	(Under) Budget
Factory wages	$22,180	$23,730	$1,550
Materials	72,460	71,950		$(510)
Power and light	4,200	5,000	800
Maintenance	7,910	8,660	750
	$106,750	$109,340	$3,100	$(510)

a. Complete the budget performance reports by determining the correct amounts for the lettered spaces (a. - l.) found above.

a.	$fill in the blank	g.	$fill in the blank
b.	$fill in the blank	h.	$fill in the blank
c.	$fill in the blank	i.	$fill in the blank
d.	$fill in the blank	j.	$fill in the blank
e.	$fill in the blank	k.	$fill in the blank
f.	$fill in the blank	l.	$fill in the blank

b. If you were composing a memo to Jeff Kitchens, Vice President of Production, explaining the performance of the Production Division for April, you might include the following:

The Oxford plant has experienced a budget overrun or surplus, while the Little Rock plant has experienced a budget overrun or surplus. The budget of the Oxford plant reveals that the Condenser Assembly Department caused the majority of the budget

overrun or surplus. The budget for the Condenser Assembly Department indicates that the budget overrun or surplus was caused by a combination of budget overruns in wages, power and light, and maintenance or wages, power, and light that exceeded a budget surplus in materials.

3. The following data were summarized from the accounting records for Vintage Construction Company for the year ended October 31, 20Y3.

Administrative expenses:			Sales:
	Commercial Division	$500,000		Commercial Division	$6,250,000
	Residential Division	250,000		Residential Division	1,875,000
Cost of goods sold:			Service department charges:
	Commercial Division	$3,800,000		Commercial Division	$1,000,000
	Residential Division	1,300,000		Residential Division	200,000

Prepare divisional income statements for Vintage Construction Company.

CHOOSE ONE:	Commercial Division	Residential Division
Administrative expenses Cash Operating income Sales Service department charges	$-	$-
Administrative expenses Cash Cost of goods sold Net profit Service department charges	-	-
Gross profit Net profit Operating income Sales Service department charges	$-	$-
Administrative expenses Cost of goods sold Industrial division charges Net profit Residential division charges	-	-
Cost of goods sold Operating income after service department charges Operating income before service department charges Residential division charges Sales	$-	$-
Gross profit Net profit Operating loss Sales Service department charges	-	-
Gross profit Net profit Operating income Operating loss Sales	$-	$-

4. The following data were summarized from the accounting records for Vintage Construction Company for the year ended October 31, 20Y3.

Administrative expenses:			Sales:
	Commercial Division	$92,740		Commercial Division	$772,800
	Residential Division	86,550		Residential Division	432,770
Cost of goods sold:			Service department charges:
	Commercial Division	$510,050		Commercial Division	$69,550
	Residential Division	242,350		Residential Division	41,980

Prepare divisional income statements for Vintage Construction Company.

CHOOSE ONE:	Commercial Division	Residential Division
Administrative expenses Cash Operating income Sales Service department charges	$-	$-
Administrative expenses Cash Cost of goods sold Net profit Service department charges	-	-
Gross profit Gross sales Operating income Sales Service department charges	$-	$-
Administrative expenses Commercial division charges Cost of goods sold Net profit Service department charges	-	-
Cost of goods sold Operating income after service department charges Operating income before service department charges Residential division charges Sales	$-	$-
Gain from operations Gross profit Operating loss Sales Service department charges	-	-
Gross profit Net profit Operating income Operating loss Sales	$-	$-

5. The condensed income statement for the International Division of Valgenti Inc. is as follows (assuming no service department charges):

Sales	$24,000,000
Cost of goods sold	(14,100,000)
Gross profit	$ 9,900,000
Administrative expenses	(6,060,000)
Operating income	$ 3,840,000

The manager of the International Division is considering ways to increase the return on investment.

a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $20,000,000 of assets have been invested in the International Division. Round your answers to one decimal place, if necessary.

Profit margin:	fill in the blank %
Investment turnover:	fill in the blank
Rate of return on investment:	fill in the blank %

b. If expenses could be reduced by $240,000 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the International Division? Round your answers to one decimal place, if necessary.

Profit margin:	fill in the blank %
Investment turnover:	fill in the blank
Rate of return on investment:	fill in the blank %

6. The condensed income statement for the International Division of Valgenti Inc. is as follows (assuming no service department charges):

Sales	$1,062,000
Cost of goods sold	477,900
Gross profit	$584,100
Administrative expenses	371,700
Operating income	$212,400

The manager of the International Division is considering ways to increase the return on investment.

a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the International Division, assuming that $1,770,000 of assets have been invested in the International Division. Round investment turnover to one decimal place.

Profit margin:	fill in the blank %
Investment turnover:	fill in the blank
Rate of return on investment:	fill in the blank %

b. If expenses could be reduced by $53,100 without decreasing sales, what would be the impact on the profit margin, investment turnover, and return on investment for the International Division? Round investment turnover to one decimal place.