Only the cells that are bolded and/or have a number beside them need to he answered. Thabk you for your help!

I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapters corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp: a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Fixed and Variable Cost Determinations - Unit Cost Calculations Part 2 Cost Volume Relationships - Profit Planning Part 3 Budgets Part 4 Process Costing Part 5 Job Order Costing Part 6 Standard Costing - Variance Analysis Part 7 Capital Decision Making Page 2 1 See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1.125.000.00 750,000.00 $ 375.000.00 Sales 25,000 lamps @ 545.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses Foxed Variable (Commission per unit) $3.00 Administrative Expenses Fixed Variable @ $200 Total Selling and Administrative Expenses Net Profit $23,000.00 75,000.00 $ 98,000.00 $42.000.00 50,000.00 $2,000.00 190.000.00 $ 185 000.00 1 See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67 500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 0 3000 @ $30.00 90.000,00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Foxed Assets Total Assets $ 20,000.00 6.800.00 13.200.00 $ 213.410.00 $ $ 54.000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 159.410.00 $213.410.00 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit: Direct Labor Variable Overhead Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30,0000000 per lamp Expected increases for 20x2 When calculating projected increases round to TWO (50.00) decimal places 1. Material Costs are expected to increase by 2.50% 2. Labor Costs are expected to increase by 5.00% 3. Variable Overhead is expected to increase by 5.50%. 4. Fixed Overhead is expected to increase to $300,000 5. Fixed Administrative expenses are expected to increase to $54,000 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.00% 7. Fixed selling expenses are expected to be $35,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 2.00% On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp 3- 20x2 Projected Fixed Costs. 6507 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Lamp Kit Labor Variable Overhead {4.01) [4.02) [4.03) Projected Variable Manufacturing Cost Per Unit [4.04) Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling Variable Administrative Projected Variable Manufacturing Unit Cost [4.05) [4.06) {4.04) Projected Total Variable Cost Per Unit [4.07) Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase [4.08) lamps @_) Fixed Overhead (normal capacity of Fixed Selling Fixed Administrative [4.09) [4.10) [4.11] Projected Total Fixed Costs Page 5 PART 2 Cost Volume Relationships - Profit Planning Big Als about to begin work on the budget for 2012 and they have requested that you prepare an analysis based on the following assumpons Note Remember, that we cannot sent part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthermore, to find the required sales in dolars may be easier to and the number of units and then multiply by the sling price per unit For 2012 seling price perlom will be $45.00. What is the projected contribution margin and contribution margin rabo for each lam sold? 1 Contribution Margin perunt (Round to wo places, 543) 15 011 Contribution Murgin Ratio (Round to four places, stwo of those places ) 15.02) 2. For 20x2 the selling price per lamp will be 345.00. The desired net income in 2002 is $192.500What would sales in units have to be in 2012 to reach the profit goal? Breakevendes in units too we cannot be part of a unit rund up to the returneeded 15.03) 3. For 2012 the selling price per lamp will be $45.00. If the fixed cost increase by $35,000.00 how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unti neded) [5.04) 4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $350 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unst round up to the next unit if needed) (6.01) 5 For 20x2 the selling price per lamp will be $45.00 If the variable cost decreased by 53.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the need unit needed) (6.02) 6. If for 20x2 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unt round up to the next unit it needed) (6.03) 7 If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) (6.04) PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 35,000 lamps at $48.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 675 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production (7.01) 2 Matemats Sudant (8.01) Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $8) (8.02) (8.03) (8.04) 18.05) (8.06) 3 Direct Labor Budget (8.07) Labor Cost Per Lamp Production Total Labor Cost (Round to two places. S##.##) (8.08) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $####) Fixed Factory Overhead 18.09) (8.10) Total Factory Overhead (Round to two places, S## ##) (8.11) 4 Factory Overhead Budget Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units (Round to two places. S####) (9,01) 19.02) 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit Total cost of one unit (Round to two places, S## ## (9.03) (9.04) (9.05) (9.06) Round dollars to two places. S#### (9.07) 6 Selling and Admin Budant Fixed Selling Variable Selling (Round to two places, S####) Fixed Administrative Variable Administrative (Round to two places, Sw##) Total Selling and Administrative (Round to two places, Sa###) SUVI Goods 7 Sold. Budget Beginning Inventory, Finished Goods Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used In Production Total Materials: Labor Overhead Cost of Goods Available Less Ending Inventory. Finished Goods Cost of Goods Sold (9.08) (9.09) (9.10) (9.11) (9.12) {9.13) (9.14) 7 Rudanted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin Expenses Net Income (10.01) 8 Cash Buciaer Assume actual cash receipts and disbursements will follow the pattern below. (Note Receivables and Payables of 12/31x1 will have a cash impact in 20x2.) 1. 18.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February 2. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3. All other manufacturing and operating costs are paid for when incurred 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20X2, $185.000 I See The Light Projected Cash Budget For the Year Ending December 31, 2022 Round dollars to two places. $0 # Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available {10.02) {10.03) (10.04) (10.05) Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20X2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) (10.06) {10.07) (10.08) (10.09) (10.10) Budgeted Cash Balance PART 5 Job Order Costing To keep records of the actual cost of a special order job. a Job Order Cost System has been developed Overhead is applied at the rate of 50% of the direct labor cost Job Order Casting Section On January 1, 20x2. Division S began Job 2407 for the Client, THE BIG CHILDREN STORE, The Job called for 4,000 customized lamps The following set of transactions occurred from January 5 until the job was completed 5-Jan Purchased 4.150 Lamp Kits @ $16.25 per kit 9-Jan 4.100 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 610 Direct Labor Hours $9.75 per hour 30-Jan Payroll of 660 Direct Labor Hours $10.00 per hour 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead $ 1,193.80 $ 40,623.45 Round to two places, Cost of Direct Material incurred in Manufacturing Job 2407 (13.01) Cost of Direct Labor incurred in Manufacturing Job 2407 (13.02) Cost of Manufacturing Overhead Applied to Job 2407 (13.03) Cost of manufacturing one lamp (13.04) PART 6 Standard Job Order Costing - Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders Standards Lamp Kits Direct Labor Variable Overhead ** Fixed Overhead Total $16.000000 per lamp 2.400000 per lamp (4 lamps/hr.) 0.250000 per lamp (4 lamps./hr.) 10.000000 per lamp $28.650000 **Foxed overhead is based on expected production of 4.015 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences Job Order Costing Section On January 1, 20x2. Division S began Job 1101 for the client. THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4 150 Lamp Kits @ $16.25 per kit. 9-Jan 4.100 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 610 Direct Labor Hours @ $9.75 per hour 30-Jan Payroll of 660 Direct Labor Hours @ $10,00 per hour. 30-Jan 3,985 lamps were completed and shipped. All materials requisitioned were used or scrapped Month End Overhead Information Actual Variable Overhead Actual Foxed Overhead $ 1,193.80 $ 40,623.45 How many Lamps were completed? Note: Show favorable variances as negative numbers Round dollars to two places, $#### What was the total material price variance for the Lamp Kits purchased? (15.01) What was the material usage variance for Lamp Kits ? (15.02) What was the direct labor efficiency variance ? (15.03) What was the direct labor rate variance? Note: Show favorable variances as negative numbers What was the variable overhead efficiency variance ? (16.01) What was the variable OH spending variance ? (16.02) What is the fixed OH volume (denominator) variance? (16.03) What is the fixed OH spending variance? (16.04) PART 7 Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker He has priced a machine at a national member only warehouse for $2.250. The machine should be usable for 3 years, after which it would be inefficient obsolete and would have to be disposed of at the dump. Big Al believes that 15 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cana) costs $5.76 and Big Al believes that a price of $ 60 per can would win him good will What is the estimated annual sales in cans of soda? (1701) What is the contribution margin per can of soda?(rounded to two places S60) (17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, cans) (17.03) Annual incremental cash inflows from the soda machine crounded to two places SA (17.04) What is the payback period in years?(rounded to two places years) (1705) If the time value of money is 12% per year what is the net present value? Use the tables on page 18 (17.06) What is the internal rate of return. Pick the closest interest rate from the tables on page 18 (17.07) Page 18 Present Value of Annuity $1.00 in Arrears Interest Periods interest Periods 6 5.801 5 508 5.417 6.329 5.242 5.150 5.076 4.980 4.917 4.841 4.767 4.694 4.623 4.554 4 486 4.420 4.355 4 292 4 231 4.170 Rate 50.595 51.0% 51.5% 52.0 52 5% 53.0% 535% 540% 54,5% 55.0% 55.5% 56.0% 56.5% 57.0% Rate 3 4 2.0% 2 884 3.800 2.5% 2856 3.762 3.0% 2.829 3.717 35% 2.802 3.673 40% 2.775 3.630 45% 2749 3.588 5.0% 2.723 3.546 5.5% 2698 3.505 6.0% 2.673 3.465 6.5% 2 648 3.426 70% 2624 3.387 75% 2601 3.349 8.0% 2 577 3.312 8.5% 2554 3.276 9.096 2.531 3.240 9.5% 2.509 3.204 10.0% 2.487 3170 10 5% 2465 3.136 11 0% 2.444 3.102 11.5% 2.423 3.070 12.0% 2.402 3.037 12.5% 2.381 3.006 13.0% 2361 2.974 13.5% 2.341 2.944 14.0% 2.322 2.914 145% 2.302 2.884 15.0% 2 283 2.856 15.596 2204 2.826 16.06 2.246 2.798 16.596 2 228 2.770 17.0% 2210 2.743 17 5% 2.192 2.716 18.0% 2 174 2.690 18.5% 2 157 2.664 19.00 2.140 2.639 19.5% 2.123 2.613 20.0% 2.108 2.589 20.5% 2.090 2.584 21.0% 2.074 2540 21.5% 2.058 2517 22.0% 2.042 2.494 22,5% 2.027 2.471 23.090 2.011 2.448 23.5% 1.996 2.426 24.0% 1.981 2.404 24.5% 1.967 2383 25.0% 1.952 2.362 25.5% 1.938 2.341 26.0% 1.923 2.320 26.5% 1.909 2.300 27.0% 1.896 2.280 27 5% 1.882 2.260 28.0% 1.868 2.241 28.5% 1.855 2.222 29.0% 1.842 2203 5 4.713 4.646 4.580 4515 4.452 4.390 4.329 4.270 4.212 4.156 4 100 4,046 3.993 3.941 3.890 3840 3.791 3.743 3.696 3.650 3.806 3.561 3.517 3.475 3.433 3.392 3.352 3.313 3.274 3.236 3.199 3.163 3.127 3.092 3.058 3024 2 991 2958 2.926 2 895 2.864 2833 2 803 2774 2.745 2.717 2.689 2.682 2.635 2.609 2.583 2.567 2.532 2507 2.483 4.054 3.998 3.943 3.889 3.836 3.784 3.734 3.685 3.636 3.589 3.543 3.498 3.453 3.410 3.367 3.326 3285 3.246 3.205 3167 3129 3.092 3.056 3.020 2 986 2951 2.918 2 885 2.853 2.821 2.790 2.759 2.729 2.700 58 0% 58 5% 59.0% 59.5% 60.0% 80.5% 81.0 61.5% 620% 62.5% 63.09 63.5% B4.09% 64 5% 65.0% 66 596 66.031 68.5% 67.0% 67.5% 68.0%! 68.5% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 720% 72.5% 73,0% 73.5% 74.0% 74,5% 75.0% 75 5% 78.0% 76.5% 77,0% 77.5% 3 1.399 1.391 1.383 1375 1,368 1.360 1,352 1.345 1.337 1.330 1.323 1.315 1.308 1.301 1294 1.287 1280 1 273 1.266 1-260 1.253 1 247 1.240 1.234 1.227 1.221 1.214 1.208 1 202 1.196 1.190 1.184 1.178 1.172 1.100 1.160 1.155 1.149 1.143 1.138 1.132 1.127 1.121 1.110 1.111 1.105 1.100 1.095 1.090 1.085 1.079 1.074 1.069 1.064 1.080 4 1,594 1584 1.573 1 563 1.553 1542 1.532 1.523 1513 1.503 1.494 1.484 1.475 1.486 1,457 1 447 1.439 1.430 1.421 1412 1.404 1.395 1.387 1.379 1371 1.362 1354 1.347 1:339 1 331 1.323 1316 1.308 1.301 1.293 1.286 1.279 1.272 1.265 1.258 1.251 1.244 1.237 1.230 1.224 1217 1210 1.204 1.198 1.191 1.185 1.179 1.172 1.166 1.160 5 1724 1.711 1 698 1.686 1674 1 062 1.650 1.638 1.626 1.615 1.604 1.592 1.581 1.570 1.560 1 549 1.539 1.528 1.518 1.508 1.498 1.488 1478 1.468 1.459 1.449 1.440 1.431 1.422 1.413 1.404 1.395 1.386 1.378 1.369 1.361 1.352 1.344 1.336 1.328 1.320 1 312 11.304 1.297 1.289 1.281 1.274 1.267 1259 1.252 1.245 1.238 1.231 1224 1217 6 1.810 1.795 1.781 1.767 1.753 1.740 1725 1.713 1.700 1.687 1.674 1.662 1649 1637 1.625 1,613 1.602 1590 1.579 1.567 1.556 1.545 1534 1.524 1.513 1,503 1.492 1.482 1.472 1.462 1.452 1.443 1.433 1,424 1.414 1.405 1396 1.387 1378 1.369 1.381 1,352 1.344 1.335 1.327 1.319 1.311 1.303 1.295 1.287 1.279 1.272 1.264 1.256 1 249 Page 18 Present Value of Annuity $1.00 in Arrears Interest Periods Interest Periods 29 5 Rate 3 4 5 1.829 2.185 2.459 30.0% 1.816 2.166 2.436 30 5% 1 803 2148 2412 31.0% 1.791 2.130 2.390 31.5% 1.779 2113 2.367 32.0% 1.766 2.096 2.345 32 5% 1.754 2.079 2.324 33.096 1.742 2082 2302 33.5% 1.730 2.045 2.281 34.0% 1.719 2.029 2.260 345 1.707 2013 2.240 35 0% 1.898 1.997 2 220 35.5% 1.685 1.981 2200 36 0% 1,673 1.966 2.181 36.5% 1.682 1951 2.162 37.0% 1.652 1.935 2.143 375% 1.641 1.921 2.124 38 0% 1.630 1.906 2. 108 38.5%6 1.620 1 892 2.088 39.0% 1,609 1.877 2.070 39.5% 1.599 1.863 2.052 40.0% 1.589 1.849 2.036 40.5% 1.579 1.836 2018 41.0% 1.560 1.822 2.001 41.5% 1.559 1.809 1.985 42 0% 1.549 1.795 1.969 42 5% 1.540 1.782 1.953 43.0% 1.530 1.769 1.937 43.5% 1.527 1.757 1.921 44 0% 1.512 1.744 1.908 44 5% 1.502 1.732 1.890 45.0% 1.493 1.720 1.876 45.5% 1.484 1.707 46.0% 1.475 1.895 1.846 46.5% 1.467 1.684 1.832 47.0% 1.458 1.672 1.818 47.5% 1.449 1.660 1.804 48.0% 1.441 1.549 1.790 48.5% 1.432 1.638 1.776 49.0% 1.424 1.763 49.5% 1.416 1.616 1.750 50.0% 1.407 1.605 1.737 8 2.871 2043 2.615 2.588 2.561 2.534 2 508 2.483 2458 2433 2 409 2.385 2.362 2.339 2.316 2 294 2272 2.251 2 229 2.209 2.188 2.168 2.148 2.129 2.109 2091 2.072 2.054 2.036 2.018 2.000 1.983 1.986 1.949 1.933 1.917 1.901 1.885 1.870 1.854 1.839 1.824 Rate 78 0% 785% 79.0% 79.5% 80.0% 80.5% 81.0 81.5% 82.0% 82 5% 83.0% 83.5% 84 0% 84.5% 85.0% 85.5% 86.0% 86.5% a7.0% 87.5% 88,0% 88.5% 89.0% 89.5% 90.0% 90.5% 91.096 91.5% 92.0%) 92.5% 93.0% 93.5% 94.0% 94.5% 95.0% 95.5% 96.0% 96.5% 970% 97.5% 98.0% 98.5% 99.0% 99.5% 100.0% 3 4 5 1066 1 154 1210 1060 1 148 1 204 1.045 1.1437 1.197 1.040 1137 1.190 1.036 1.131 1,184 1031 1125 1.177 1.026 1.120 1.171 1.022 1.114 1.165 1.017 1.100 1.158 1.013 1.103 1.552 1.008 1.097 1.146 1.092 1.140 0.999 1.087 1.134 0.995 1.081 1.128 0.991 1,076 1.122 0.986 1.071 1.116 0.982 1.066 1.111 0.978 1.061 1.105 0.974 1.055 1.099 0.969 1.050 1.094 0.965 1.045 1.088 0.961 1.040 1.082 0.957 1.036 1.077 0.953 1.031 1.072 1.026 1.066 0.945 1.021 1.061 0.941 1.016 1.056 0.937 1.012 1.050 0.933 1.007 1.045 0.930 1.002 1.040 0.926 0.998 1.035 0.922 0.993 1.030 0.918 0.989 1.025 0.914 0.984 1.020 0.911 0.980 1.015 0.907 0.975 1.010 0.903 0.971 1.006 0.900 0.967 1.001 0.896 0.962 0.996 0.893 0.958 0.992 0.889 0.954 0.987 0.885 0.950 0.982 0.882 0.946 0.978 0.878 0.942 0.973 0.875 0.938 0.969 6 1242 1.235 1 227 1.220 1213 1.200 1.199 1.193 1.186 1.179 1.173 1.186 1.160 1.153 1.147 1.141 1.135 1.129 1.123 1.117 1.111 1.105 1.099 1.093 1.087 1.082 1.076 1,071 1.065 1.060 1.054 1.049 1.044 1.039 1.033 1.028 1.023 1.018 1.013 1.008 1.003 0.999 0.994 0.989 0.984 0.949 1.861 1627 If off the chart use 100% I SEE THE LIGHT Background Information I SEE THE LIGHT (ISTL) is a subchapters corporation that manufactures children's lampsightlights for use in bedrooms. These lamps are sold nationwide through a group of independent sales representatives who have an exclusive sales region. The business is in its tenth year and has asked you to assist in planning for next year's operations. The lamps are ceramic figurines of animals, boats, boys and girls playing and singing, all in delightful colors. The owner of the business, Big Al, creates a drawing for the figurine and faxes it to a plant in China where a mold is created and a sample produced and hand painted. If the mold meets the expectations of Big Al an order of 500 lamp parts is placed. Each lamp kit consists of the parts required to complete one lamp: a figurine, a lamp shade and the required electrical components. There are presently 10 different figurines that come in six different colors; 60 models. There are presently 10 workers in the plant. They are responsible for receiving the raw material, manufacturing the product, packing and shipping. In addition to Big Al there are two office workers who are responsible for all administrative duties. Big Al had his accountant prepare the Projected Income Statement and Balance Sheet presented on page two. Big Al heard about your skills in managerial accounting and would like your assistance in the following areas: Part 1 Fixed and Variable Cost Determinations - Unit Cost Calculations Part 2 Cost Volume Relationships - Profit Planning Part 3 Budgets Part 4 Process Costing Part 5 Job Order Costing Part 6 Standard Costing - Variance Analysis Part 7 Capital Decision Making Page 2 1 See The Light Projected Income Statement For the Period Ending December 31, 20x1 $ 1.125.000.00 750,000.00 $ 375.000.00 Sales 25,000 lamps @ 545.00 Cost of Goods Sold @ $30.00 Gross Profit Selling Expenses Foxed Variable (Commission per unit) $3.00 Administrative Expenses Fixed Variable @ $200 Total Selling and Administrative Expenses Net Profit $23,000.00 75,000.00 $ 98,000.00 $42.000.00 50,000.00 $2,000.00 190.000.00 $ 185 000.00 1 See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67 500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ $16.00 0 3000 @ $30.00 90.000,00 $ 200,210.00 Fixed Assets Equipment Accumulated Depreciation Total Foxed Assets Total Assets $ 20,000.00 6.800.00 13.200.00 $ 213.410.00 $ $ 54.000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 159.410.00 $213.410.00 PART 1 Fixed and Variable Cost Determinations Unit Cost Calculations The projected cost of a lamp is calculated based upon the projected increases or decreases to current costs. The present costs to manufacture one lamp are: Lamp Kit: Direct Labor Variable Overhead Fixed Overhead: $16.0000000 per lamp 2.0000000 per lamp (4 lamps/hr.) 2.0000000 per lamp 10.0000000 per lamp (based on normal capacity of 25,000 lamps) Cost per lamp: $30,0000000 per lamp Expected increases for 20x2 When calculating projected increases round to TWO (50.00) decimal places 1. Material Costs are expected to increase by 2.50% 2. Labor Costs are expected to increase by 5.00% 3. Variable Overhead is expected to increase by 5.50%. 4. Fixed Overhead is expected to increase to $300,000 5. Fixed Administrative expenses are expected to increase to $54,000 6. Variable selling expenses (measured on a per lamp basis) are expected to increase by 3.00% 7. Fixed selling expenses are expected to be $35,000 in 20x2. 8. Variable administrative expenses (measured a per lamp basis) are expected to increase by 2.00% On the following schedule develop the following figures: 1- 20x2 Projected Variable Manufacturing Unit Cost of a lamp. 2- 20x2 Projected Variable Unit Cost per lamp 3- 20x2 Projected Fixed Costs. 6507 I See The Light, Inc Schedule of Projected Costs Variable Manufacturing Unit Cost 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Lamp Kit Labor Variable Overhead {4.01) [4.02) [4.03) Projected Variable Manufacturing Cost Per Unit [4.04) Total Variable Cost Per Unit 20x1 Cost Projected Percent Increase 20x2 Cost Rounded to 2 Decimal Places Variable Selling Variable Administrative Projected Variable Manufacturing Unit Cost [4.05) [4.06) {4.04) Projected Total Variable Cost Per Unit [4.07) Schedule of Fixed Costs 20x1 Cost 20x2 Cost Projected Percent Increase [4.08) lamps @_) Fixed Overhead (normal capacity of Fixed Selling Fixed Administrative [4.09) [4.10) [4.11] Projected Total Fixed Costs Page 5 PART 2 Cost Volume Relationships - Profit Planning Big Als about to begin work on the budget for 2012 and they have requested that you prepare an analysis based on the following assumpons Note Remember, that we cannot sent part of a lamp, therefore to find the number of units you have to round up to the next complete unit. Furthermore, to find the required sales in dolars may be easier to and the number of units and then multiply by the sling price per unit For 2012 seling price perlom will be $45.00. What is the projected contribution margin and contribution margin rabo for each lam sold? 1 Contribution Margin perunt (Round to wo places, 543) 15 011 Contribution Murgin Ratio (Round to four places, stwo of those places ) 15.02) 2. For 20x2 the selling price per lamp will be 345.00. The desired net income in 2002 is $192.500What would sales in units have to be in 2012 to reach the profit goal? Breakevendes in units too we cannot be part of a unit rund up to the returneeded 15.03) 3. For 2012 the selling price per lamp will be $45.00. If the fixed cost increase by $35,000.00 how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unti neded) [5.04) 4. For 20x2 the selling price per lamp will be $45.00. If the variable cost increase by $350 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unst round up to the next unit if needed) (6.01) 5 For 20x2 the selling price per lamp will be $45.00 If the variable cost decreased by 53.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the need unit needed) (6.02) 6. If for 20x2 the selling price per lamp is increased to $48.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unt round up to the next unit it needed) (6.03) 7 If for 20x2 the selling price per lamp is decreased to $41.50 a unit how many lamps must be sold to breakeven? Breakeven sales in units (Since we cannot sell part of a unit round up to the next unit if needed) (6.04) PART 3 Budgets Division N has decided to develop its budget based upon projected sales of 35,000 lamps at $48.00 per lamp. The company has requested that you prepare a master budget for the year. This budget is to be used for planning and control of operations and should be composed of: 1. Production Budget 2. Materials Budget 3. Direct Labor Budget 4. Factory Overhead Budget 5. Selling and Administrative Budget 6. Cost of Goods Sold Budget 7. Budgeted Income Statement 8. Cash Budget Notes for Budgeting The company wants to maintain the same number of units in the beginning and ending inventories of work-in-process, and electrical parts while increasing the inventory of Lamp Kits to 675 pieces and decreasing the finished goods by 20%. Complete the following budgets 1 Production Budget Planned Sales Desired Ending Inventory of Finished Goods Total Needed Less: Beginning Inventory Total Production (7.01) 2 Matemats Sudant (8.01) Lamp Kits Needed for Production Desired Ending Inventory Total Needed Less: Beginning Inventory Total Purchases Cost per piece Cost of Purchases (Round to two places, $8) (8.02) (8.03) (8.04) 18.05) (8.06) 3 Direct Labor Budget (8.07) Labor Cost Per Lamp Production Total Labor Cost (Round to two places. S##.##) (8.08) 4 Factory Overhead Budget Variable Factory Overhead: Variable Factory Overhead Cost Per Unit Number of Units to be Produced Total Variable Factory Overhead (Round to two places, $####) Fixed Factory Overhead 18.09) (8.10) Total Factory Overhead (Round to two places, S## ##) (8.11) 4 Factory Overhead Budget Overhead Allocation rate based on: 1. Number of Units Total Factory Overhead / Number of Units (Round to two places. S####) (9,01) 19.02) 5 Cost of making one unit next year Cost of one Lamp Kit Labor Cost Per Lamp Factory overhead per unit Total cost of one unit (Round to two places, S## ## (9.03) (9.04) (9.05) (9.06) Round dollars to two places. S#### (9.07) 6 Selling and Admin Budant Fixed Selling Variable Selling (Round to two places, S####) Fixed Administrative Variable Administrative (Round to two places, Sw##) Total Selling and Administrative (Round to two places, Sa###) SUVI Goods 7 Sold. Budget Beginning Inventory, Finished Goods Production Costs: Materials: Lamp Kits: Beginning Inventory Purchased Available for Use Ending Inventory of Lamp Kits Lamp Kits Used In Production Total Materials: Labor Overhead Cost of Goods Available Less Ending Inventory. Finished Goods Cost of Goods Sold (9.08) (9.09) (9.10) (9.11) (9.12) {9.13) (9.14) 7 Rudanted Income Statement Sales Cost of Goods Sold Gross Profit Selling Expenses & Admin Expenses Net Income (10.01) 8 Cash Buciaer Assume actual cash receipts and disbursements will follow the pattern below. (Note Receivables and Payables of 12/31x1 will have a cash impact in 20x2.) 1. 18.00% of sales for the year are made in November and December. Since our customers have 60 day terms those funds will be collected be collected in January and February 2. 81.00% of material purchases will be paid during the year, the remaining portion will be paid in Januay or February 3. All other manufacturing and operating costs are paid for when incurred 4. The budgeted depreciation expense is equal to 0.6% of the fixed manufacturing, selling and administrative expenses. 5. Minimum Cash Balance needed for 20X2, $185.000 I See The Light Projected Cash Budget For the Year Ending December 31, 2022 Round dollars to two places. $0 # Beginning Cash Balance Cash Inflows: Sales Collections: Account Receivable (Sales last year not collected) Sales made and collected in 20x2 Cash Available {10.02) {10.03) (10.04) (10.05) Cash Outflows: Purchases Accounts Payable (Purchases last year) Purchases made and paid for in 20X2 Other Manufacturing Costs Direct Labor Total Manufacturing Overhead Selling and Administrative Less: Depreciation Total Cash Outflows Budgeted Cash Balance before financing Needed Minimum Balance Amount to be borrowed (if any) (10.06) {10.07) (10.08) (10.09) (10.10) Budgeted Cash Balance PART 5 Job Order Costing To keep records of the actual cost of a special order job. a Job Order Cost System has been developed Overhead is applied at the rate of 50% of the direct labor cost Job Order Casting Section On January 1, 20x2. Division S began Job 2407 for the Client, THE BIG CHILDREN STORE, The Job called for 4,000 customized lamps The following set of transactions occurred from January 5 until the job was completed 5-Jan Purchased 4.150 Lamp Kits @ $16.25 per kit 9-Jan 4.100 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 610 Direct Labor Hours $9.75 per hour 30-Jan Payroll of 660 Direct Labor Hours $10.00 per hour 30-Jan 3,990 lamps were completed and shipped. All materials requisitioned were used or scrapped, and are a cost of normal processing Month End Overhead Information Actual Variable Manufacturing Overhead Actual Fixed Manufacturing Overhead $ 1,193.80 $ 40,623.45 Round to two places, Cost of Direct Material incurred in Manufacturing Job 2407 (13.01) Cost of Direct Labor incurred in Manufacturing Job 2407 (13.02) Cost of Manufacturing Overhead Applied to Job 2407 (13.03) Cost of manufacturing one lamp (13.04) PART 6 Standard Job Order Costing - Variance Analysis Special order lamps are manufactured in division S. Because of the precise nature of the process a standard cost system has been developed. The following standards are used for the special orders Standards Lamp Kits Direct Labor Variable Overhead ** Fixed Overhead Total $16.000000 per lamp 2.400000 per lamp (4 lamps/hr.) 0.250000 per lamp (4 lamps./hr.) 10.000000 per lamp $28.650000 **Foxed overhead is based on expected production of 4.015 customized lamps each month. To keep records of the actual cost of a job, a Job Order Cost System has been developed. Entries are made to the Job Order System at actual cost (overhead is applied based on actual labor hours) while entries are made to the accounting system at standard. Variance analysis is used to analyze the differences Job Order Costing Section On January 1, 20x2. Division S began Job 1101 for the client. THE BIG CHILDREN STORE. The job called for 4,000 customized lamps. The following set of transactions occurred from January 5 until the job was completed: 5-Jan Purchased 4 150 Lamp Kits @ $16.25 per kit. 9-Jan 4.100 sets of Lamp Kits were requisitioned. 17-Jan Payroll of 610 Direct Labor Hours @ $9.75 per hour 30-Jan Payroll of 660 Direct Labor Hours @ $10,00 per hour. 30-Jan 3,985 lamps were completed and shipped. All materials requisitioned were used or scrapped Month End Overhead Information Actual Variable Overhead Actual Foxed Overhead $ 1,193.80 $ 40,623.45 How many Lamps were completed? Note: Show favorable variances as negative numbers Round dollars to two places, $#### What was the total material price variance for the Lamp Kits purchased? (15.01) What was the material usage variance for Lamp Kits ? (15.02) What was the direct labor efficiency variance ? (15.03) What was the direct labor rate variance? Note: Show favorable variances as negative numbers What was the variable overhead efficiency variance ? (16.01) What was the variable OH spending variance ? (16.02) What is the fixed OH volume (denominator) variance? (16.03) What is the fixed OH spending variance? (16.04) PART 7 Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker He has priced a machine at a national member only warehouse for $2.250. The machine should be usable for 3 years, after which it would be inefficient obsolete and would have to be disposed of at the dump. Big Al believes that 15 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cana) costs $5.76 and Big Al believes that a price of $ 60 per can would win him good will What is the estimated annual sales in cans of soda? (1701) What is the contribution margin per can of soda?(rounded to two places S60) (17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, cans) (17.03) Annual incremental cash inflows from the soda machine crounded to two places SA (17.04) What is the payback period in years?(rounded to two places years) (1705) If the time value of money is 12% per year what is the net present value? Use the tables on page 18 (17.06) What is the internal rate of return. Pick the closest interest rate from the tables on page 18 (17.07) Page 18 Present Value of Annuity $1.00 in Arrears Interest Periods interest Periods 6 5.801 5 508 5.417 6.329 5.242 5.150 5.076 4.980 4.917 4.841 4.767 4.694 4.623 4.554 4 486 4.420 4.355 4 292 4 231 4.170 Rate 50.595 51.0% 51.5% 52.0 52 5% 53.0% 535% 540% 54,5% 55.0% 55.5% 56.0% 56.5% 57.0% Rate 3 4 2.0% 2 884 3.800 2.5% 2856 3.762 3.0% 2.829 3.717 35% 2.802 3.673 40% 2.775 3.630 45% 2749 3.588 5.0% 2.723 3.546 5.5% 2698 3.505 6.0% 2.673 3.465 6.5% 2 648 3.426 70% 2624 3.387 75% 2601 3.349 8.0% 2 577 3.312 8.5% 2554 3.276 9.096 2.531 3.240 9.5% 2.509 3.204 10.0% 2.487 3170 10 5% 2465 3.136 11 0% 2.444 3.102 11.5% 2.423 3.070 12.0% 2.402 3.037 12.5% 2.381 3.006 13.0% 2361 2.974 13.5% 2.341 2.944 14.0% 2.322 2.914 145% 2.302 2.884 15.0% 2 283 2.856 15.596 2204 2.826 16.06 2.246 2.798 16.596 2 228 2.770 17.0% 2210 2.743 17 5% 2.192 2.716 18.0% 2 174 2.690 18.5% 2 157 2.664 19.00 2.140 2.639 19.5% 2.123 2.613 20.0% 2.108 2.589 20.5% 2.090 2.584 21.0% 2.074 2540 21.5% 2.058 2517 22.0% 2.042 2.494 22,5% 2.027 2.471 23.090 2.011 2.448 23.5% 1.996 2.426 24.0% 1.981 2.404 24.5% 1.967 2383 25.0% 1.952 2.362 25.5% 1.938 2.341 26.0% 1.923 2.320 26.5% 1.909 2.300 27.0% 1.896 2.280 27 5% 1.882 2.260 28.0% 1.868 2.241 28.5% 1.855 2.222 29.0% 1.842 2203 5 4.713 4.646 4.580 4515 4.452 4.390 4.329 4.270 4.212 4.156 4 100 4,046 3.993 3.941 3.890 3840 3.791 3.743 3.696 3.650 3.806 3.561 3.517 3.475 3.433 3.392 3.352 3.313 3.274 3.236 3.199 3.163 3.127 3.092 3.058 3024 2 991 2958 2.926 2 895 2.864 2833 2 803 2774 2.745 2.717 2.689 2.682 2.635 2.609 2.583 2.567 2.532 2507 2.483 4.054 3.998 3.943 3.889 3.836 3.784 3.734 3.685 3.636 3.589 3.543 3.498 3.453 3.410 3.367 3.326 3285 3.246 3.205 3167 3129 3.092 3.056 3.020 2 986 2951 2.918 2 885 2.853 2.821 2.790 2.759 2.729 2.700 58 0% 58 5% 59.0% 59.5% 60.0% 80.5% 81.0 61.5% 620% 62.5% 63.09 63.5% B4.09% 64 5% 65.0% 66 596 66.031 68.5% 67.0% 67.5% 68.0%! 68.5% 69.0% 69.5% 70.0% 70.5% 71.0% 71.5% 720% 72.5% 73,0% 73.5% 74.0% 74,5% 75.0% 75 5% 78.0% 76.5% 77,0% 77.5% 3 1.399 1.391 1.383 1375 1,368 1.360 1,352 1.345 1.337 1.330 1.323 1.315 1.308 1.301 1294 1.287 1280 1 273 1.266 1-260 1.253 1 247 1.240 1.234 1.227 1.221 1.214 1.208 1 202 1.196 1.190 1.184 1.178 1.172 1.100 1.160 1.155 1.149 1.143 1.138 1.132 1.127 1.121 1.110 1.111 1.105 1.100 1.095 1.090 1.085 1.079 1.074 1.069 1.064 1.080 4 1,594 1584 1.573 1 563 1.553 1542 1.532 1.523 1513 1.503 1.494 1.484 1.475 1.486 1,457 1 447 1.439 1.430 1.421 1412 1.404 1.395 1.387 1.379 1371 1.362 1354 1.347 1:339 1 331 1.323 1316 1.308 1.301 1.293 1.286 1.279 1.272 1.265 1.258 1.251 1.244 1.237 1.230 1.224 1217 1210 1.204 1.198 1.191 1.185 1.179 1.172 1.166 1.160 5 1724 1.711 1 698 1.686 1674 1 062 1.650 1.638 1.626 1.615 1.604 1.592 1.581 1.570 1.560 1 549 1.539 1.528 1.518 1.508 1.498 1.488 1478 1.468 1.459 1.449 1.440 1.431 1.422 1.413 1.404 1.395 1.386 1.378 1.369 1.361 1.352 1.344 1.336 1.328 1.320 1 312 11.304 1.297 1.289 1.281 1.274 1.267 1259 1.252 1.245 1.238 1.231 1224 1217 6 1.810 1.795 1.781 1.767 1.753 1.740 1725 1.713 1.700 1.687 1.674 1.662 1649 1637 1.625 1,613 1.602 1590 1.579 1.567 1.556 1.545 1534 1.524 1.513 1,503 1.492 1.482 1.472 1.462 1.452 1.443 1.433 1,424 1.414 1.405 1396 1.387 1378 1.369 1.381 1,352 1.344 1.335 1.327 1.319 1.311 1.303 1.295 1.287 1.279 1.272 1.264 1.256 1 249 Page 18 Present Value of Annuity $1.00 in Arrears Interest Periods Interest Periods 29 5 Rate 3 4 5 1.829 2.185 2.459 30.0% 1.816 2.166 2.436 30 5% 1 803 2148 2412 31.0% 1.791 2.130 2.390 31.5% 1.779 2113 2.367 32.0% 1.766 2.096 2.345 32 5% 1.754 2.079 2.324 33.096 1.742 2082 2302 33.5% 1.730 2.045 2.281 34.0% 1.719 2.029 2.260 345 1.707 2013 2.240 35 0% 1.898 1.997 2 220 35.5% 1.685 1.981 2200 36 0% 1,673 1.966 2.181 36.5% 1.682 1951 2.162 37.0% 1.652 1.935 2.143 375% 1.641 1.921 2.124 38 0% 1.630 1.906 2. 108 38.5%6 1.620 1 892 2.088 39.0% 1,609 1.877 2.070 39.5% 1.599 1.863 2.052 40.0% 1.589 1.849 2.036 40.5% 1.579 1.836 2018 41.0% 1.560 1.822 2.001 41.5% 1.559 1.809 1.985 42 0% 1.549 1.795 1.969 42 5% 1.540 1.782 1.953 43.0% 1.530 1.769 1.937 43.5% 1.527 1.757 1.921 44 0% 1.512 1.744 1.908 44 5% 1.502 1.732 1.890 45.0% 1.493 1.720 1.876 45.5% 1.484 1.707 46.0% 1.475 1.895 1.846 46.5% 1.467 1.684 1.832 47.0% 1.458 1.672 1.818 47.5% 1.449 1.660 1.804 48.0% 1.441 1.549 1.790 48.5% 1.432 1.638 1.776 49.0% 1.424 1.763 49.5% 1.416 1.616 1.750 50.0% 1.407 1.605 1.737 8 2.871 2043 2.615 2.588 2.561 2.534 2 508 2.483 2458 2433 2 409 2.385 2.362 2.339 2.316 2 294 2272 2.251 2 229 2.209 2.188 2.168 2.148 2.129 2.109 2091 2.072 2.054 2.036 2.018 2.000 1.983 1.986 1.949 1.933 1.917 1.901 1.885 1.870 1.854 1.839 1.824 Rate 78 0% 785% 79.0% 79.5% 80.0% 80.5% 81.0 81.5% 82.0% 82 5% 83.0% 83.5% 84 0% 84.5% 85.0% 85.5% 86.0% 86.5% a7.0% 87.5% 88,0% 88.5% 89.0% 89.5% 90.0% 90.5% 91.096 91.5% 92.0%) 92.5% 93.0% 93.5% 94.0% 94.5% 95.0% 95.5% 96.0% 96.5% 970% 97.5% 98.0% 98.5% 99.0% 99.5% 100.0% 3 4 5 1066 1 154 1210 1060 1 148 1 204 1.045 1.1437 1.197 1.040 1137 1.190 1.036 1.131 1,184 1031 1125 1.177 1.026 1.120 1.171 1.022 1.114 1.165 1.017 1.100 1.158 1.013 1.103 1.552 1.008 1.097 1.146 1.092 1.140 0.999 1.087 1.134 0.995 1.081 1.128 0.991 1,076 1.122 0.986 1.071 1.116 0.982 1.066 1.111 0.978 1.061 1.105 0.974 1.055 1.099 0.969 1.050 1.094 0.965 1.045 1.088 0.961 1.040 1.082 0.957 1.036 1.077 0.953 1.031 1.072 1.026 1.066 0.945 1.021 1.061 0.941 1.016 1.056 0.937 1.012 1.050 0.933 1.007 1.045 0.930 1.002 1.040 0.926 0.998 1.035 0.922 0.993 1.030 0.918 0.989 1.025 0.914 0.984 1.020 0.911 0.980 1.015 0.907 0.975 1.010 0.903 0.971 1.006 0.900 0.967 1.001 0.896 0.962 0.996 0.893 0.958 0.992 0.889 0.954 0.987 0.885 0.950 0.982 0.882 0.946 0.978 0.878 0.942 0.973 0.875 0.938 0.969 6 1242 1.235 1 227 1.220 1213 1.200 1.199 1.193 1.186 1.179 1.173 1.186 1.160 1.153 1.147 1.141 1.135 1.129 1.123 1.117 1.111 1.105 1.099 1.093 1.087 1.082 1.076 1,071 1.065 1.060 1.054 1.049 1.044 1.039 1.033 1.028 1.023 1.018 1.013 1.008 1.003 0.999 0.994 0.989 0.984 0.949 1.861 1627 If off the chart use 100%