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I need the answers to the follow questions attached. Performance Report Based on Actual Production Ladan Suriman, controller for Healthy Pet Company, has been instructed

I need the answers to the follow questions attached.

image text in transcribed Performance Report Based on Actual Production Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hours per bag, and SpecialDiet requires 0.30 direct labor hours per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Overhead Item Maintenance Variable Rate per Fixed Cost Direct Labor Hour $57,250 $0.50 Power 0.40 Indirect labor 43,500 Rent 2.10 39,000 Assume that Healthy Pet actually produced 100,000 bags of BasicDiet and 90,000 bags of SpecialDiet. The actual overhead costs incurred were as follows: Maintenance Power $81,300 18,700 Indirect labor $143,600 Rent 39,000 1. Calculate the number of direct labor hours budgeted for actual production of the two products. direct labor hours 2. Prepare a performance report for the period based on actual production. In the variance type column, select "F" for favorable and "U" for unfavorable. If the variance is zero, enter ("0") in the variance amount column and "N" for neither in the variance type column. Healthy Pet Company Performance Report For the Current Year Actual Budgeted Variance $ $ $ $ $ Variance Type (F or U or N) $ Units produced Production unit: Maintenance Power Indirect labor Rent Total costs Residual Income Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last year's results: Adams Division Jefferson Division Net (after-tax) income $611,050 $374,850 Total capital employed 4,440,000 3,282,500 In addition, Washington Company's top management has set a minimum acceptable rate of return equal to 9%. Required: Enter negative values as negative numbers. 1. Calculate the residual income for the Adams Division. $ 2. Calculate the residual income for the Jefferson Division. $ Return on Investment, Margin, Turnover Ready Electronics is facing stiff competition from imported goods. Its operating income margin has been declining steadily for the past several years. The company has been forced to lower prices so that it can maintain its market share. The operating results for the past 3 years are as follows: Year 1 Sales Year 2 Year 3 $13,500,000 Operating income Average assets $ 9,500,000 $ 9,000,000 1,200,000 1,145,000 945,000 15,000,000 15,000,000 16,250,000 For the coming year, Ready's president plans to install a JIT purchasing and manufacturing system. She estimates that inventories will be reduced by 70% during the first year of operations, producing a 20% reduction in the average operating assets of the company, which would remain unchanged without the JIT system. She also estimates that sales and operating income will be restored to Year 1 levels because of simultaneous reductions in operating expenses and selling prices. Lower selling prices will allow Ready to expand its market share. (Note: Round all numbers to two decimal places.) Required: 1. Compute the ROI, margin, and turnover for Years 1, 2, and 3. Year 1 Year 2 Year 3 % % % % % % ROI Margin Turnover 2. Conceptual Connection: Suppose that in Year 4 the sales and operating income were achieved as expected, but inventories remained at the same level as in Year 3. Compute the expected ROI, margin, and turnover. % ROI % Margin Turnover Why did the ROI increase over the Year 3 level? The ROI increased because expenses increased and assets turned over at a lower rate (sales decreased). The ROI increased because expenses decreased and assets turned over at a higher rate (sales increased). 3. Conceptual Connection: Suppose that the sales and net operating income for Year 4 remained the same as in Year 3 but inventory reductions were achieved as projected. Compute the ROI, margin, and turnover. % ROI % Margin Turnover Why did the ROI exceed the Year 3 level? The ROI increased because assets decreased. The ROI increased because assets increased. 4. Conceptual Connection: Assume that all expectations for Year 4 were realized. Compute the expected ROI, margin, and turnover. % ROI % Margin Turnover Why did the ROI increase over the Year 3 level? The ROI increased because expenses decreased and assets turned over at a higher rate. The ROI increased because expenses increased and assets turned over at a higher rate. The ROI increased because expenses decreased and assets turned over at a lower rate. The ROI increased because expenses increased and assets turned over at a lower rate

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