Question
Northern Illinois Manufacturing reported the following results from last years operations: Sales (1,320,000 units) $ 15,840,000 Variable Expenses: Direct Materials 1,940,400 Direct Labor 5,450,220 Manufacturing
Northern Illinois Manufacturing reported the following results from last years operations:
Sales (1,320,000 units) |
| $ 15,840,000 |
Variable Expenses: |
|
|
Direct Materials | 1,940,400 |
|
Direct Labor | 5,450,220 |
|
Manufacturing OH | 2,100,500 |
|
S & A | 2,112,000 |
|
Total Variable |
| 11,603,120 |
Contribution Margin |
| 4,236,880 |
Fixed Expenses |
|
|
Manufacturing OH | 767,700 |
|
S & A | 1,126,800 |
|
Total Fixed |
| 1,894,500 |
Net Operating Income |
| $ 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 |
Move time | 1.6 days |
Queue time | 4.1 days |
Budgeted information for Northern Illinois is based on the following information:
Sales Units | 1,300,000 |
Sales Price | $12 per unit |
Direct materials | $1.50 per unit |
Direct labor | $3.60 per unit |
Variable OH | $1.50 per unit |
Variable S & A | $1.60 per unit |
Fixed OH | $750,000 |
Fixed S & A | $1,125,000 |
The following standard cost card is for the variable manufacturing for one unit of production:
| Std Quantity | Std Price | Std Cost |
Direct materials | 2.00 lbs | 0.75 per pound | 1.50 |
Direct labor | 0.20 hrs | 18.00 per hour | 3.60 |
Variable OH |
| 1.50 per unit | 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 companys 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.
- Determine the variable overhead spending and efficiency variances.
- Determine the ROI and RI for last year.
- Determine last years throughput time, MCE, and delivery cycle time.
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