Please read this CAREFULLY before submitting your answers: 1) I only need help with the parts shown above G through J. G requires a budget sheet - please demonstrate this. 2) Please use Microsoft Excel. 3) Please do not copy someone else's photo and share it here as an answer, I am looking for help understanding these concepts better, thank you!

COMPREHENSIVE PROBLEM 6 UTEASE CORPORATION Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. $ 40 135 30 45 $250 Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours): Direct materials (2 pounds at $20) Direct labor (1.5 hours at $90) Variable overhead (1.5 hours at $20) Fixed overhead (1.5 hours at $30) Standard cost per unit Budgeted selling and administrative costs: Variable Fixed Expected sales activity: 20,000 units at $425 per unit Desired ending inventories: 10% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. $5 per unit $1,800,000 Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 23,000 21,500 $420 34,000 $3,094,000 50,000 pounds $1,000,000 50,000 pounds $1,080,000 $620,000 $2,000,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. g. Use a flexible budget to explain the difference between the budgeted operating profit and the actual operating profit for the Dubuque plant for its first year of operations. What part of the difference do you believe is the plant manager's responsibility? h. Assume Utease Corporation is planning to change its evaluation of business operations in all plants from the profit center format to the investment center format. If the average invested capital at the Dubuque plant is $8,050,000, compute the return on investment (ROI) for the first year of operations. Use the DuPont method of evaluation to compute the return on sales (ROS) and capital turnover (CT) for the plant. i. Assume that under the investment center evaluation plan the plant manager will be awarded a bonus based on ROI. If the manager has the opportunity in the coming year to invest in new equipment for $600,000 that will generate incremental earnings of $108,000 per year, would the manager undertake the project? Why or why not? What other evaluation tools could Utease use for its plants that might be better? j. The chief financial officer of Utease Corporation wants to include a charge in each investment center's income statement for corporatewide administrative expenses. Should the Bellingham plant manager's annual bonus be based on plant ROI after deducting the corporatewide administrative fee? Why or why not? Page 1123