1. Wildhorse Company estimates that it will produce 7,000 units of product IOA during the current month. Budgeted variable manufacturing costs per unit are direct materials $6, direct labor $12, and overhead $17. Monthly budgeted fixed manufacturing overhead costs are $8,000 for depreciation and $4,000 for supervision. In the current month, Wildhorse actually produced 7,500 units and incurred the following costs: direct materials $38,808, direct labor $82,100, variable overhead $127,806, depreciation $8,000, and supervision $4,200. Prepare a static budget report. Hint: The Budget column is based on estimated production while the Actual column is the actual cost incurred during the period. (List variable costs before fixed costs.)

2. Ivanhoe Company expects to produce 1,263,600 units of Product XX in 2022. Monthly production is expected to range from 83,000 to 123,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labor $6, and overhead $10. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $3. In March 2022, the company incurs the following costs in producing 103,000 units: direct materials $439,000, direct labor $615,000, and variable overhead $1,037,000. Actual fixed costs were equal to budgeted fixed costs. Prepare a flexible budget report for March. (List variable costs before fixed costs.)

3. Wildhorse, Inc. reports the following financial information for its sports clothing segment.

Average operating assets		$3,056,000
Controllable margin		$641,760
Minimum rate of return		7	%

Compute the return on investment and the residual income.

Return on investment		enter a return on investment in percentage	%
Residual income		$enter a residual income in dollar amount