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please explain me how to solve theses problems Presented below is information related to the Southern Division of Lumber, Inc. Contribution margin $1,217,500 Controllable margin
please explain me how to solve theses problems
Presented below is information related to the Southern Division of Lumber, Inc. Contribution margin $1,217,500 Controllable margin $883,300 Average operating assets $4,015,000 Minimum rate of return 17 % Compute the Southern Division's return on investment and residual income. Return on investment % Residual income Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows: Indirect labor $1.20 Indirect materials 0.70 Utilities 0.40 Fixed overhead costs per month are Supervision $4,200, Depreciation $1,500, and Property Taxes $800. The company believes it will normally operate in a range of 5,900-9,800 direct labor hours per month. Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,300 direct labor hours. (List variable costs before fixed costs.) MYERS COMPANY Monthly Manufacturing Overhead Flexible Budget For the Year 2020 $ $ $ $ | |Step by Step Solution
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