Question
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
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 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. Determine the ROI and RI for last year.
2. Determine last years throughput time, MCE, and delivery cycle time.
Please complete in excel.
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