than the static budget performance report. What insights can Trolley's managers draw from this performance 5. What are the four pe The four perspect Iarning and gry 7. During 2019, Troir Requirements hours. balance sheet. (Provided to you online in Pearson and in class.) TROLLEY TOY COMPANY Income Statement For the Year Ended December 31, 2019 Net Sales Revenue Cost at Goods Sold: Variable Fixed 1. Prepare Trolley's operating budget and cash budget for 2019 by quarter. Required schedules and budgets budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor 2. Prepare Trolley's annual financial budget for 2019, including budgeted income statement and budgeted 3. Trolley sold 7,000 sets in 2019, and its actual operating income was as follows: 4. What was the effect on Trolley's operating income of selling 500 sets more than the static budget level of 6. Explain why the flexible budget performance report provides more useful information to Trolley's managers $630,000 S 94,890 36,540 131,430 Gross Profit 198,570 Selling and Administrative Expenser: Variable 12.600 Foxeci 61,400 74,000 Operating Income 424,570 Other Income and (Expenses): Interest Expense (425) Income Before Income Taxes 424,145 Income Tax Expense 22,000 Net Income $ 402.145 Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019, assume the following product costs: Variable Fixed Total Static budget $ 84,240 $38,340 $ 122,580 Flexible budget 93,940 38.340 132,280 5. What is Trolley's static budget variance for operating income? sales? report? The furowth spective addresses the question DO spapras learning and What are the four perspectives of pectives of the balance scorecard are facial perspective helps managers answer the question." and credits spective bele magers evaluate the question. How do customel "At which business proce *omer and financial tive assesses the question, "How can we continues 7. During 2019, Trolley recorded the following cost data: Standard Cost Information Cost Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Static budget amount: $38,340 Quantity 3 pounds per set 0.30 hours per set 0.30 hours per set $ 2,00 per pound $ 12.00 per hour $ 12.00 per hour 0.30 hours per set $ 21.00 per hour Actual Cost Information Direct materials Direct labor Variable manufacturing overticad Fixed manufacturing overhead (20,700 pounds @ $2.50 per pound) (2,060 hours @ $12.40 per hour) (2,060 hours @ $11.60 per hour) $ 51,750 25,544 23,896 36,540 Compute the cost and efficiency variances for direct materials and direct labor. 8. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 9. Prepare the standard cost income statement for 2019. (Provided to you online and in class.) 10. Calculate Trolley's Rol for 2019. To calculate average total assets, use the December 31, 2018, balance sheet for the beginning balance and the budgeted balance sheet for December 31, 2019, for the ending balance. Round all of your answers to four decimal places. 11. Calculate Trolley's profit margin ratio for 2019. Interpret your results. 12. Calculate Trolley's asset turnover ratio for 2019. Interpret your results. 13. Use the expanded ROI formula to confirm your results from Requirement 10. Interpret your results. 14. Trolley's management has specified a 30% target rate of return. Calculate Trolley's RI for 2019. Interpret your results. than the static budget performance report. What insights can Trolley's managers draw from this performance 5. What are the four pe The four perspect Iarning and gry 7. During 2019, Troir Requirements hours. balance sheet. (Provided to you online in Pearson and in class.) TROLLEY TOY COMPANY Income Statement For the Year Ended December 31, 2019 Net Sales Revenue Cost at Goods Sold: Variable Fixed 1. Prepare Trolley's operating budget and cash budget for 2019 by quarter. Required schedules and budgets budget, cost of goods sold budget, selling and administrative expense budget, schedule of cash receipts, include: sales budget, production budget, direct materials budget, direct labor budget, manufacturing overhead schedule of cash payments, and cash budget. Manufacturing overhead costs are allocated based on direct labor 2. Prepare Trolley's annual financial budget for 2019, including budgeted income statement and budgeted 3. Trolley sold 7,000 sets in 2019, and its actual operating income was as follows: 4. What was the effect on Trolley's operating income of selling 500 sets more than the static budget level of 6. Explain why the flexible budget performance report provides more useful information to Trolley's managers $630,000 S 94,890 36,540 131,430 Gross Profit 198,570 Selling and Administrative Expenser: Variable 12.600 Foxeci 61,400 74,000 Operating Income 424,570 Other Income and (Expenses): Interest Expense (425) Income Before Income Taxes 424,145 Income Tax Expense 22,000 Net Income $ 402.145 Prepare a flexible budget performance report through operating income for 2019. Show product costs separately from selling and administrative costs. To simplify the calculations due to sets in beginning inventory having a different cost than those produced and sold in 2019, assume the following product costs: Variable Fixed Total Static budget $ 84,240 $38,340 $ 122,580 Flexible budget 93,940 38.340 132,280 5. What is Trolley's static budget variance for operating income? sales? report? The furowth spective addresses the question DO spapras learning and What are the four perspectives of pectives of the balance scorecard are facial perspective helps managers answer the question." and credits spective bele magers evaluate the question. How do customel "At which business proce *omer and financial tive assesses the question, "How can we continues 7. During 2019, Trolley recorded the following cost data: Standard Cost Information Cost Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Static budget amount: $38,340 Quantity 3 pounds per set 0.30 hours per set 0.30 hours per set $ 2,00 per pound $ 12.00 per hour $ 12.00 per hour 0.30 hours per set $ 21.00 per hour Actual Cost Information Direct materials Direct labor Variable manufacturing overticad Fixed manufacturing overhead (20,700 pounds @ $2.50 per pound) (2,060 hours @ $12.40 per hour) (2,060 hours @ $11.60 per hour) $ 51,750 25,544 23,896 36,540 Compute the cost and efficiency variances for direct materials and direct labor. 8. For manufacturing overhead, compute the variable overhead cost and efficiency variances and the fixed overhead cost and volume variances. 9. Prepare the standard cost income statement for 2019. (Provided to you online and in class.) 10. Calculate Trolley's Rol for 2019. To calculate average total assets, use the December 31, 2018, balance sheet for the beginning balance and the budgeted balance sheet for December 31, 2019, for the ending balance. Round all of your answers to four decimal places. 11. Calculate Trolley's profit margin ratio for 2019. Interpret your results. 12. Calculate Trolley's asset turnover ratio for 2019. Interpret your results. 13. Use the expanded ROI formula to confirm your results from Requirement 10. Interpret your results. 14. Trolley's management has specified a 30% target rate of return. Calculate Trolley's RI for 2019. Interpret your results