Enter number in blue cells a Enter formulas in the yellow cells Enter your narrative analysis in the green cells Kitty Hawk manufactures and distributes high end drones. The following costs are available for the year and. The company had no beginning inventory. Last year they produced 1.100 units and but only sold 1,600 units. The unit selling price was $4 300 and expenses were; Variable Cost per Unit Direct Materials Units Produced Units Sold Direct Labor 750 Unit's Remaining Variable Mily Over Head 200 Unh selling price Venable selling and admin Annual Fixed Costs Miffy overhead fied 350 000 Find Selling and admin Expandes In 1. Compute the cost of manufacturing one unit for both verisble and absorption costing we Ched Overhead axed Doed per unit Determine the product cost far Variable Absorption is Back method Diredd Materials Direct Labor Werichie Mig OverHang Variable willing and adminVariable Mfg OverHead Variable selling and admin Fixed Cost per unit Total Cost per unit it 2. Prepare an income statement for both variable and absorption costing 34 Income Stimt Per unit Variable Per unit Absorption IS Unit sold 1,600 1.GOD as Sales Sales 17 Variable Prod Costs COGS VOOGS Gross Profit Less Variable selling expense Less Period Costs MFG Margin Variable selling it Less Fixed Costs Fixed Selling Food Mip Ohead Total period costs 41 Fixed Seling a Total Fixed Costs Difference we Net Income Net Income as Proof Ending Inventory Ending inventory Per unit Difference Per unit Total Ending Total ending inventory Inventory& INSTRUCTIONS; Enter numbers in blue cells Enter formulas in the yellow cells Enter your ram alive analysis in the green cells 1. Compute the return on Assets for each division bekiev Investment Center Sales Net Income hard assets Huturn on Investment Coffee/Expresso machine 41,250,000 $4,550 000 $12,500,000 Coffee machine w/ 16.975,000 $1,975 000 10,950,000 Basic Collen maker 10,400,000 875,000 7540100 12 2. Assume a target Income of 125% of average invested assets. Compute the residual income for each division Coffee machine machine wy Bask Coffee maker grinder Not income Legs Larget net Incom Residual IncomeResidual Income Profit Margin Coffee/Expresso machine Coffee machine w/ grinder Hasic Coffee maker Net income sales Investment Turnover Inv etr sales Ave assets ROI 3. if you were the Vice President over the Coffee Bitching Division what is your analysis of the three products? Are there products where sales is a concern? if so, what three steps would you take to perform further analysis as to whether or not you should discontinue the product? MAcme Labs has four separate jabs: chemical, bin, mechanical and electrical. The four Libs all share the sepport functions of Admin. Uvities and insurance. Acme spreads the east of these three departments to the like based on the allocation below May Allocation barn Administraive copart 104 950 number of employees 72.600 square feet per lah Insurance 36,030 value of assets In use. 211,950 Department Square feet Aspat values Chem Lab 20 47,950 No Lab 99 55,500 85.250 Mechanical Lab 29,800 91,500 Electrical Lab 18,500 95.500 Totals 118,890 206,200 TO INSTRUCTIONS Enter numbers in blue cells Enter formulas in the yellow cells Emet your narrative anshots in the green cellsIIIin Administrative Expenses Allocation Base %% allocation boss Cost Department I employees Chem Lab Biki Lab Mechanical Lab Electrical Lab Totals Quilltier Allocation Bain N'allocation base Cost Department Sqaure fret occupied Onem Lab Alo Lah Muchonical Lab Electrical Lab TotahTotal Allocation Ban K allocation base Coat Department Value of Appart In ung Chism Lab Bio Lah Mechanical Lah Whenical Lob Summary Admin Maurance Total Chem Lab Mechanical Lab Total
