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 0.7 days Wait time (from order to start of production) 13.5 days Process time 3.6 days 4 Move time 1.6 days Queue time 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%. 292 words LE Focus 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) 292 words DE Facus Variances Focusing first on revenue, the actual revenue totaled $194,200. However, the flexible bud- get indicates that, given the actual level of activity, revenue should have been $198.000. Consequently, revenue was $3,800 less than it should have been given the actual num- ber of client-visits for the month. This discrepancy is labeled as a $3,800 U (unfavor able) variance and is called a revenue variance. A revenue variance is the difference between the actual total revenue and what the total revenue should have been given the EXHIBIT 9-6 Revenue and Spending Variances from Comparing Actual Results to the Flexible Budget Rick's Hairstyling Revenue and Spending Variances For the Month Ended March 31 Revenue and Actual Flexible Spending Results Budget Variances Client-visits.. 1,100 1,100 Revenue($180.000). $194,200 $198.000 $3,800 U Expenses: Wages and salaries ($65,000 + $37.000). 106,900 105.700 1,200 U Hairstyling supplies ($1.500) 1.620 1.650 30 F Client gratuities ($4.100) 6,870 4,510 2,360 U Electricity ($1,500+ $0.109). 1.550 1,610 60 F Rent ($28,500) 28,500 28,500 0 Liability insurance ($2,800) 2,800 2.800 0 Employee health Insurance ($21,300) 22,600 21,300 1,300 Miscellaneous ($1.200+ $0.20g). 2,130 1,420 7100 172,970 167,490 Total expense. 5,480 U Net operating income $ 21.230 S 30.510 59.280 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 funfavorable) when the actual expense is less than (greater than the flexible budget 397