Managerial Accounting Practice Excel Assignment.
Performance Measurement Spring Northern Illinois Manufacturing reported the following results from last year's operations: $ 15,840,000 1,940,400 5,450,220 2,100,500 2,112,000 Sales (1,320,000 units Variable Expenses: Direct Materials Direct Labor Manufacturing OH S&A Total Variable Contribution Margin Fixed Expenses Manufacturing OH S&A Total Fixed Net Operating Income 11,603,120 4,236,880 767,700 1,126,800 1,894,500 $ 2,342,380 Total operating assets at the end of the year are $20,900,000. The total operating assets at the end of last year was $19,100,000. The company tracks its internal business process performance and reports the following data for this year: Inspection time Wait time (from order to start of production) Process time Move time Queue time | 0.7 days 13.5 days 3.6 days 1.6 days 4.1 days Budgeted information for Northern Illinois is based on the following information: Sales - Units Sales Price Direct materials Direct labor Variable OH Variable S&A Fixed OH Fixed S&A 1,300,000 $12 per unit $1.50 per unit $3.60 per unit $1.50 per unit $1.60 per unit $750,000 $1,125,000 The following standard cost card is for the variable manufacturing for one unit of production: Direct materials Direct labor Variable OH Std Quantity 2.00 lbs 0.20 hrs Std Price 0.75 per pound 18.00 per hour 1.50 per unit Std Cost 1.50 3.60 1.50 During the year, the company purchased and used 2,772,000 pounds of material. The company worked 302,790 hours at a rate of $18 per hour. The company's minimum return is 10%. This assignment requires several items to be completed using an Excel spreadsheet. Please prepare the items in the order given with the number of the requirement or your Excel spreadsheet 1. Prepare the flexible budget performance report for last year. (See exhibit 9-6) 2. Determine the material price and quantity variances. 3. Determine the direct labor price and quantity variances. 4. Determine the variable overhead spending and efficiency variances. 5. Determine the ROI and RI for last year. 6. Determine last year's throughput time, MCE, and delivery cycle time. Rick's Hairstyling Revenue and Spending Variances For the Month Ended March 31 EXHIBIT 9-6 Revenue and Spending Variances from Comparing Actual Results to the Flexible Budget Revenue and Actual Flexible Spending Results Budget Variances 1.100 1.100 $ 194,200 $198,000 $3,800 U Client-visits Revenue($180.000)..... Expenses: Wages and salaries ($65,000+ $37.000)........ Hairstyling supplies ($1.500).............. Client gratuities ($4.10q) ................. Electricity ($1,500 + $0.10).............. Rent ($28,500)............ Liability insurance ($2,800) .. Employee health insurance ($21,300) Miscellaneous ($1,200 + $0.209)... Total expense....... Net operating income 106,900 105,700 1,200 U 1,620 1,650 30 F 6,870 4,510 2,360 U 1.550 1,610 60 F 28,500 28.5000 2,800 2,8000 22,600 21,300 1,300 U 2,130 1,420 710 U 172,970 167,490 5.480 U $ 21,230 $ 30,510 $9,280 U "The revenue variance is labeled favorable (unfavorable) when the actual revenue is greater than (less than the flexible budget. The expense variances are labeled favorable (unfavorable) when the actual expense is less than (greater than the flexible budget. 397
