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.

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 years throughput time, MCE, and delivery cycle time.