Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Northern Illinois Manufacturing reported the following results from last year's operations: Sales (1,325,000 units $ 15,900,000 Variable Expenses: Direct Materials 1,801,800 Direct Labor 5,450,580 Manufacturing

image text in transcribed
image text in transcribed
image text in transcribed
Northern Illinois Manufacturing reported the following results from last year's operations: Sales (1,325,000 units $ 15,900,000 Variable Expenses: Direct Materials 1,801,800 Direct Labor 5,450,580 Manufacturing OH 2,053,750 S&A 2,112,000 Total Variable 11,418,130 Contribution Margin 4,481,870 Fixed Expenses Manufacturing OH 757,700 S&A 1,136,800 Total Fixed 1,894,500 Net Operating Income $ 2,587,370 Total operating assets at the end of the year are $20,700,000. The total operating assets at the end of last year was $19,800,000. The company tracks its internal business process performance and reports the following data for this year: Inspection time 0.6 days Wait time (from order to start of production) 14.5 days Process time 3.7 days Move time 1.7 days Queue time 4.3 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 302,810 hours at a rate of $18 per hour. The company's minimum return is 10%. I 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 requirementor your Excel spreadsheet. 1. Prepare the flexible budget performance report for last year. (See exhibit 9-6 in the text) 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions