Chapter 9 principal Managerial Accounting

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Data table Actual Flexible Budget % Variance RacerSubunit X Results Flexible Budget Variance (F or U) (F or U) Direct Materials $ 28,500 $ 26,700 Direct Labor 13,200 13,700 Indirect Labor 26,000 22,700 Utilities 12,700 11,800 Depreciation 28,000 28,000 Repairs and Maintenance 5'100 5'800 $ 113,500 $ 108,700 Total Requirements . Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two decimal places. . Based on the data presented, what type of responsibility center is this subunit? . Which items should be investigated if part of management's decision criteria is to investigate all variances exceeding $2,500 or 10%? . Should only unfavorable variances be investigated? Explain. One subunit of Racer Sports Company had the following financial results last month: (Click the icon to view the financial results.) Read the requirements. . . . . Requirement 1. Complete the performance evaluation report for this subunit. Enter the variance percent as a percentage of the budgeted amount rounded to two places. (Enter a variance for each account as a positive number, and select whether the variance is favorable [F] or unfavorable [U]. For any zero variances, enter a 0 in the variance column and then leave the For U box blank. Enter the variance percent as a percentage rounded to two decimal places, X.XX%.) Actual Flexible Flexible Budget Racer - Subunit X Results Budget Variance (F or U) Direct Materials $ 28,500 $ 26,700 Direct Labor 13,200 13,700 Indirect Labor 26,000 22,700 Utilities 12,700 11,800 Depreciation 28,000 28,000 Repairs and Maintenance 5, 100 5,800 113,500 $ 108,700 Total $Data table Profit margin ratio Asset turnover ratio ROI Division 1 6.7% 2.661 19.2% Division 2 11.1% 1.115 18.4% \fX Requirements 1. Compute Division 3's profit margin ratio, asset turnover ratio, and ROI. Round your results to three decimal places. Interpret the results in relation to the other two divisions. 2. Compute and interpret Division 3's RI. 3. What can you conclude based on the financial performance KPIs?Hasty Company has three divisions and expects each division to earn a 17% target rate of return. The company had the Division 3 reported the following data: following results last year: (Click the icon to view the Division 3 data.) (Click the icon to view the results.) Read the requirements. . . . . . Requirement 1. Compute Division 3's profit margin ratio, asset turnover ratio, and ROI. Round your results to three decimal places. Interpret the results in relation to the other two divisions. Begin by computing Division 3's profit margin ratio. (Enter the profit margin ratio as a percentage rounded to one decimal place, X.X%.) = Profit margin ratio %Data table Net Sales Revenue Operating Income Average Total Assets Residential EA 520,000 $ 59, 150 $ 182,000 Professional 1,060,000 160,800 402,000 Management has a 25% target rate of return for each division.Requirements Calculate each division's ROI. Round all of your answers to four decimal places. Calculate each division's prot margin ratio. Interpret your results. Calculate each division's asset turnover ratio. Interpret your results. Use the expanded ROI formula to conrm your results from Requirement 1. What can you conclude? Zooms. a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year: E (Click the icon to view the information.) Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI). and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to two decimal places, X.XX%) + = ROI Netting division information?\" Sales Price per Unit Variable Cost per Unit Contribution Margin per Unit Requirements Determine the negotiable range for the transfer price. What is the minimum transfer price the Netting Division should consider if operating at capacity? Below capacity? What is the maximum transfer price the Basketball Equipment Division should consider? The Watkins Company is decentralized, and divisions are considered investment centers. Watkins specializes in sports The Basketball Equipment Division can purchase a similar heavyduty net from an outside vendor for $15. equipment, and one division manufactures netting that is used for basketball hoops. soccer goals, and other sports equipment. The Netting Division reports the following information for a heavy-duty basketball hoop net: Read th("- 3 (Click the icon to view the data.) Requirement 1. Determine the negotiable range for the transfer price. The negotiable range for the transfer price is W to m