Question
MUST BE ABLE TO ANSWER EACH QUESTION. IF NOT, PLEASE SKIP. THANK YOU 1) For the quarter ended March 31, 2017, Croix Company accumulates the
MUST BE ABLE TO ANSWER EACH QUESTION. IF NOT, PLEASE SKIP. THANK YOU
1) For the quarter ended March 31, 2017, Croix Company accumulates the following sales data for its newest guitar, The Edge: $321,500 budget; $326,000 actual. Prepare a static budget report for the quarter.
__________________________________________________________________________________________
2) In Rooney Company, direct labor is $17 per hour. The company expects to operate at 11,000 direct labor hours each month. In January 2017, direct labor totaling $224,300 is incurred in working 12,200 hours. Prepare a static budget report.
____________________________________________________________________________
3) For its three investment centers, Gerrard Company accumulates the following data:
Compute the return on investment (ROI) for each center.
_________________________________________________________________________________
4) For its three investment centers, Gerrard Company accumulates the following data:
The centers expect the following changes in the next year: (I) increase sales 20%; (II) decrease costs $439,000; (III) decrease average operating assets $460,000. Compute the expected return on investment (ROI) for each center. Assume center I has a controllable margin percentage of 76%. (Round ROI to 1 decimal place, e.g. 1.5.)
________________________________________________________________________________________
5) Sterling, Inc. reports the following financial information.
Compute the return on investment and the residual income.
CROIX COMPANY Sales Budget Report For the Quarter Ended March 31, 2017 Budget Actual Difference Product Line Guitar: The Edge ROONEY COMPANY Static Direct Labor Budget Report For the Month Ended January 31, 2017 Product Line Budget Actual Difference Direct Labor II Sales Controllable margin Average operating assets $2,054,000 858,160 5,048,000 $4,062,000 2,612,940 7,918,000 III $4,026,000 3,767,430 12,153,000 III The return on investment Sales Controllable margin Average operating assets $1,960,000 1,225,500 4,902,000 II $4,027,000 2,186,190 8,097,000 III $4,035,000 3,765,260 12,146,000 III The expected return on investment Average operating assets Controllable margin Minimum rate of return $2,946,300 $736,575 9 % Return on investment Residual income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started