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QUESTION 6 MUST BE ANSWERED TO FINISH 7. 7 Required information [The following information applies to the questions displayed below.) Part 7 of 8 Utease
QUESTION 6 MUST BE ANSWERED TO FINISH 7.
7 Required information [The following information applies to the questions displayed below.) Part 7 of 8 Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, 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. 12.5 points Skipped Manufacturing costs (per unit based on expected activity of 30,000 units or 54,000 direct labor hours): S eBook Direct materials (2.5 pounds at $14) Direct labor (1.8 hours at $75) Variable overhead (1.8 hours at $20) Fixed overhead (1.8 hours at $30) Standard cost per unit Budgeted selling and administrative costs: Variable Fixed 35.00 135.00 36.00 54.00 260.00 Print References S 8 per unit $1,600,000 Expected sales activity: 26,000 units at $500 per unit Desired ending inventories: 16% of sales Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity. Units produced Units sold Unit selling price Direct labor hours worked Direct labor costs Direct materials purchased Direct materials costs Direct materials used 29,000 27,500 $ 495 51,700 $3,929,200 76,500 pounds $1,071,000 76,500 pounds Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity. $ 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 29,000 27,500 495 51,700 $3,929,200 76,500 pounds $1,071,000 76,500 pounds $1,300,000 $ 980,000 $2,008,000 In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. 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 Bellingham plant is $9,330,000, 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. (Round your answers to 2 decimal places.) ROI ROS % Capital turnover 0 5 Required information [The following information applies to the questions displayed below.] Part 5 of 8 12.5 points Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, 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. Manufacturing costs (per unit based on expected activity of 30,000 units or 54,000 direct labor hours): eBook $ Print References Direct materials (2.5 pounds at $14) Direct labor (1.8 hours at $75) Variable overhead (1.8 hours at $20) Fixed overhead (1.8 hours at $30) Standard cost per unit Budgeted selling and administrative costs: Variable Fixed 35.00 135.00 36.00 54.00 260.00 $ 8 per unit $1,600,000 Expected sales activity: 26,000 units at $500 per unit Desired ending inventories: 16% of sales Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity. 5 Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity. Part 5 of 8 Units produced Units sold Unit selling price Direct labor hours worked Direct labor costa Direct materials purchased Direct materials costs Direct materials used Actual fixed overhead Actual variable overhead Actual selling and administrative costs 29,000 27,500 $ 495 51,700 $3,929,200 76,500 pounds $1,071,000 76,500 pounds $1,300,000 $ 980,000 $2,008,000 12.5 points eBook Print In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. References e-1. Find the total over- or underapplied (both fixed and variable) overhead. e-2. Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or underapplied overhead? Complete this question by entering your answers in the tabs below. Reg E1 Req E2 Find the total over- or underapplied (both fixed and variable) overhead. Overapplied overhead ReqE1 Req E2 6 Required information [The following information applies to the questions displayed below.) Part 6 of 8 12.5 points Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, 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. Manufacturing costs (per unit based on expected activity of 30,000 units or 54,000 direct labor hours): Skipped cz eBook Direct materials (2.5 pounds at $14) Direct labor (1.8 hours at $75) Variable overhead (1.8 hours at $20) Fixed overhead (1.8 hours at $30) Standard cost per unit Budgeted selling and administrative costs: variable Fixed 35.00 135.00 36.00 54.00 260.00 Print $ References $ 8 per unit $1,600,000 Expected sales activity: 26,000 units at $500 per unit Desired ending inventories: 16% of sales Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity. 6 36.00 54.00 260.00 S Variable overhead (1.8 hours at $20) Fixed overhead (1.8 hours at $30) Standard cost per unit Budgeted selling and administrative costs: Variable Fixed $ 8 per unit $1,600,000 Part 6 of 8 Expected sales activity: 26,000 units at $500 per unit Desired ending inventories: 16% of sales 12.5 points Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity. Skipped eBook Print 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 29,000 27,500 $ 495 51,700 $3,929,200 76,500 pounds $1,071,000 76,500 pounds $1,300,000 $ 980,000 $2,000,000 References In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. f. Calculate the actual plant operating profit for the year. Operating profitStep by Step Solution
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