Table 1 Berkshire Toy Company A Division of Quality Products Corporation Preliminary Statement of Divisional Operating Income for the Year Ended June 30, 1998 Variable Product Costs: Direct Materials Acrylic pile Fabric 10-mm Acrylic Eyes 45-mm Plastic Joints Polyester Fiber Fliing Woven Label Designer Box Accessories Total Direct Materials Direct Labor Variable Overhead Total Variable Production Costs Variable Selling Expenses Total Variable Expenses Contribution Margin \begin{tabular}{|r|r|r|r|} \hline 256,422 & 233,324 & 23,098 & U \\ \hline 125,637 & 106,400 & 19,237 & U \\ \hline 246,002 & 196,000 & 50,002 & U \\ \hline 450,856 & 365,400 & 85,456 & U \\ \hline 16,422 & 14,000 & 2,422 & U \\ \hline 69,488 & 67,200 & 2,288 & U \\ \hline 66,013 & 33,600 & 32,413 & U \\ \hline 1,230,840 & 1,015,924 & 214,916 & U \\ \hline 3,668,305 & 2,688,000 & 980,305 & U \\ \hline 1,725,665 & 1,046,304 & 679,361 & U \\ \hline 6,624,810 & 4,750,228 & 1,874,582 & U \\ \hline 1,859,594 & 1,218,280 & 641,314 & U \\ \hline 8,484,404 & 5,968,508 & 2,515,896 & U \\ \hline 5,962,083 & 7,037,492 & 1,075,409 & U \\ \hline \end{tabular} Fixed Costs: Manufacturing Overhead Selling Expenses Administrative Costs Total Fixed Costs Operating Income Table 2 Schedule of Standard Costs: Fifteen-Inch Berkshire Bear Normal Capacity 280,000 Table 3 Schedule of Actual Manufacturing Costs Units Produced 325,556 Actual quantity used Actual price Total cost Direct materials Direct labor Using the information in the case describing how each manager's bonus is determined, please calculate the bonus for each manager for the year. David Hall: F or U Materials price variances: Acrylic pile fabric 10-mm acrylic eyes 45mm plastic joints Polyester fiber filling Woven label Designer box Accessories x Bonus Rate = Bonus Total Rita Smith: Actual net revenue (see Table 1): Actual revenue Variable selling expenses Fixed selling expenses Budgeted net revenue (see Table 1): Budgeted revenue Variable selling expenses Fixed selling expenses x Bonus Rate = Bonus Actual net revenue - Budgeted net revenue Bill Wilford: Production efficiency variances: Acrylic pile fabric quantity variance 10-mm acrylic eyes quantity variance 45-mm plastic joints quantity variance Polyester fiber filling quantity variance Woven label quantity variance Designer box quantity variance Accessories quantity variance Direct labor efficiency variance Variable overhead efficiency variance Table 1 Berkshire Toy Company A Division of Quality Products Corporation Preliminary Statement of Divisional Operating Income for the Year Ended June 30, 1998 Variable Product Costs: Direct Materials Acrylic pile Fabric 10-mm Acrylic Eyes 45-mm Plastic Joints Polyester Fiber Fliing Woven Label Designer Box Accessories Total Direct Materials Direct Labor Variable Overhead Total Variable Production Costs Variable Selling Expenses Total Variable Expenses Contribution Margin \begin{tabular}{|r|r|r|r|} \hline 256,422 & 233,324 & 23,098 & U \\ \hline 125,637 & 106,400 & 19,237 & U \\ \hline 246,002 & 196,000 & 50,002 & U \\ \hline 450,856 & 365,400 & 85,456 & U \\ \hline 16,422 & 14,000 & 2,422 & U \\ \hline 69,488 & 67,200 & 2,288 & U \\ \hline 66,013 & 33,600 & 32,413 & U \\ \hline 1,230,840 & 1,015,924 & 214,916 & U \\ \hline 3,668,305 & 2,688,000 & 980,305 & U \\ \hline 1,725,665 & 1,046,304 & 679,361 & U \\ \hline 6,624,810 & 4,750,228 & 1,874,582 & U \\ \hline 1,859,594 & 1,218,280 & 641,314 & U \\ \hline 8,484,404 & 5,968,508 & 2,515,896 & U \\ \hline 5,962,083 & 7,037,492 & 1,075,409 & U \\ \hline \end{tabular} Fixed Costs: Manufacturing Overhead Selling Expenses Administrative Costs Total Fixed Costs Operating Income Table 2 Schedule of Standard Costs: Fifteen-Inch Berkshire Bear Normal Capacity 280,000 Table 3 Schedule of Actual Manufacturing Costs Units Produced 325,556 Actual quantity used Actual price Total cost Direct materials Direct labor Using the information in the case describing how each manager's bonus is determined, please calculate the bonus for each manager for the year. David Hall: F or U Materials price variances: Acrylic pile fabric 10-mm acrylic eyes 45mm plastic joints Polyester fiber filling Woven label Designer box Accessories x Bonus Rate = Bonus Total Rita Smith: Actual net revenue (see Table 1): Actual revenue Variable selling expenses Fixed selling expenses Budgeted net revenue (see Table 1): Budgeted revenue Variable selling expenses Fixed selling expenses x Bonus Rate = Bonus Actual net revenue - Budgeted net revenue Bill Wilford: Production efficiency variances: Acrylic pile fabric quantity variance 10-mm acrylic eyes quantity variance 45-mm plastic joints quantity variance Polyester fiber filling quantity variance Woven label quantity variance Designer box quantity variance Accessories quantity variance Direct labor efficiency variance Variable overhead efficiency variance