a) Exercise 1: What is the Responsibility Report variance for Direct Labor and is it Favorable (F)
Question:
a) Exercise 1: What is the Responsibility Report variance for Direct Labor and is it Favorable (F) or Unfavorable (U)? See circle on the printed exercise. A complete answer must have both the dollar variance amount and the F or U designation.
b) Exercise 2: What is the ROI calculation. Express your answer as a %.
c) Exercise 3: What is the Residual Income for Backpack Division after investing the $300,000 and based on this should the division adopt the new line? A complete answer should include a $ amount and a Yes or No.
d) Exercise 4: What is the Residual Income for the Backpack Division given these new assumptions and based on this should the division adopt the new line? A complete answer should include a $ and a Yes or No.
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds