Northern Illinois Manufacturing reported the following results from last years 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	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 302,810 hours at a rate of $18 per hour.

The companys minimum return is 10%.

This assignment requires 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 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 years throughput time, MCE, and delivery cycle time.