Please show the work for all questions. Need help. Label A$-$J for answers

OMPREHENSIVE PROBLEM Utease Corporation Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for accounting as a The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours): DWect materials (2 pounds at $20) . Direct labor (1.5 hours at Variable overhead (1.5 hours at $20).. Fixed overhead (1.5 hours at $30).. Standard cost per unit.. Budgeted selling and administrative costs: Expected sales activity: 20.000 units at $425 per unit Desired ending inventories: 10% of sales Assume this is the first year o operations for e Dubuque plant. During the year, the company had the following activity. nits produced . nits sold nit selling price .. irect labor hours worked .. irect labor costs.... ..... .... irect materials purchased . irect materials costs.. irect materials used .. al fixed overhead - . al variable overhead . al selling and administrative costs . ctions a. Prepare a production budget for the coming year based on the available standards, expected sales, and desired ending inventories. b. Prepare a budgeted responsibility income statement for the Dubuque plant for the coming year. c. Find the direct labor variances. Indicate if they are favorable or unfavorable and why they would be considered as such. d. Find the direct materials variances (materials price variance and quantity variance). e. Find the total over- or s 40 135 30 45 S 5 per unit 23,000 21 ,500 $420 34,000 50,000 pounds 50,000 pounds $620,000 page 1122 underapplied (both fixed and variable) overhead. Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or f. Calculate the actual plant operating profit for the year. underapplied overhead? g. Use a flexible budgetto explain the difference between the budgeted operating profit and the actual operating profit for the Dubuque plant for its first year ofoperations. What part ofthe difference do you believe is the h. Assume Utease Corporation is planning to change its evaluation ofbusiness operations in all plants from the profit center format to the investment center format. Ifthe average invested capital at the Dubuque plant is compute the return on investment (ROD for the first year ofoperations. Use the DuPont method ofevaluation to compute the return on sales (ROS) and capital turnover (CT) for thc plant. i. Assume that under the investment center evaluation plan the plant manager be awarded a bonus based on ROI. Ifthe 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 pmject? Why or why not? What other evaluation tools could Utease use for its plants that might be better? j. chief financial officer of Utease Corpomtion to include a charge in cach investment center's income statement for corporatewde administrative expenses. Should the Bellingham plant manager's annual PICCOLLAGE OMPREHENSIVE PROBLEM Utease Corporation Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for accounting as a The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours): DWect materials (2 pounds at $20) . Direct labor (1.5 hours at Variable overhead (1.5 hours at $20).. Fixed overhead (1.5 hours at $30).. Standard cost per unit.. Budgeted selling and administrative costs: Expected sales activity: 20.000 units at $425 per unit Desired ending inventories: 10% of sales Assume this is the first year o operations for e Dubuque plant. During the year, the company had the following activity. nits produced . nits sold nit selling price .. irect labor hours worked .. irect labor costs.... ..... .... irect materials purchased . irect materials costs.. irect materials used .. al fixed overhead - . al variable overhead . al selling and administrative costs . ctions a. Prepare a production budget for the coming year based on the available standards, expected sales, and desired ending inventories. b. Prepare a budgeted responsibility income statement for the Dubuque plant for the coming year. c. Find the direct labor variances. Indicate if they are favorable or unfavorable and why they would be considered as such. d. Find the direct materials variances (materials price variance and quantity variance). e. Find the total over- or s 40 135 30 45 S 5 per unit 23,000 21 ,500 $420 34,000 50,000 pounds 50,000 pounds $620,000 page 1122 underapplied (both fixed and variable) overhead. Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or f. Calculate the actual plant operating profit for the year. underapplied overhead? g. Use a flexible budgetto explain the difference between the budgeted operating profit and the actual operating profit for the Dubuque plant for its first year ofoperations. What part ofthe difference do you believe is the h. Assume Utease Corporation is planning to change its evaluation ofbusiness operations in all plants from the profit center format to the investment center format. Ifthe average invested capital at the Dubuque plant is compute the return on investment (ROD for the first year ofoperations. Use the DuPont method ofevaluation to compute the return on sales (ROS) and capital turnover (CT) for thc plant. i. Assume that under the investment center evaluation plan the plant manager be awarded a bonus based on ROI. Ifthe 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 pmject? Why or why not? What other evaluation tools could Utease use for its plants that might be better? j. chief financial officer of Utease Corpomtion to include a charge in cach investment center's income statement for corporatewde administrative expenses. Should the Bellingham plant manager's annual PICCOLLAGE