The sales, operating income, and invested assets for each division of Garner Company are as follows:

	Sales	Operating Income	Invested Assets
Division E	$3,000,000		$470,000		$2,500,000
Division F	3,600,000		430,000		2,400,000
Division G	6,000,000		560,000		3,000,000

a. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place.

	Division E	Division F	Division G
Profit margin	__________	%	__________	%	__________	%
Investment turnover	__________		__________		__________
Rate of return on investment	__________	%	__________	%	__________	%

PDT Co. has two divisions, East and West. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows:

	East Division	West Division
Revenues	$1,200,000		$800,000
Operating expenses	950,000		640,000
Service department charges	145,000		72,000
Invested assets	800,000		500,000

Question Content Area

a. condensed income statements for the past year for each division.

East Division

West Division

Revenues (e)_________________________ (w) _______________________

Operating Expenses (e)_________________________ (w) _______________________

Operating Income before-

Service department charges (e)_______________________ (w) _____________________

Service department charges (e)_______________________ (w) _____________________

Operating Income (e)_________________________ (w) _______________________

b. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to two decimal places and do not enter the percent sign (for example, enter 10.25% as "10.25").

	East Division	West Division
Profit margin	________________	%	________________	%
Investment turnover	________________		________________
Rate of return on investment	________________	%	________________	%

A portion of the divisional income statement for the year just ended is presented below in a condensed form.

	Department F
Net sales	$93,800
Cost of goods sold	72,400
Gross profit	$21,400
Operating expenses	28,900
Loss from operations	$(7,500)

The operating expenses of Department F include $16,000 for direct expenses.

It is estimated that the discontinuance of Department F would not have affected the sales of the other departments nor have reduced the indirect expenses of the business. Assuming the accuracy of these estimates, determine the effect (increase or decrease and the amount) on the operating income of the business if Department F had been discontinued. $__________ decrease

A department store apportions payroll costs to the various departments on the basis of the number of payroll checks issued by each department. Accounting costs are apportioned on the basis of the number of reports generated for each department. The payroll costs for the year were $150,000, and the accounting costs for the year totaled $70,000. The number of payroll checks issued and the number of reports generated for each department are as follows:

	Number of Payroll Checks	Number of Reports
Department A	396		60
Department B	1,278		90
Department C	126		150

a. Determine the amount of payroll cost to be apportioned to each department.

	Payroll Cost
Department A	$________________
Department B	$________________
Department C	$________________

b. Determine the amount of accounting cost to be apportioned to each department.

	Accounting Cost
Department A	$________________
Department B	$________________
Department C	$________________

The budget for Department 5 of Plant M for the current month ending March 31 is as follows:

Materials	$206,000
Factory wages	265,000
Supervisory salaries	67,800
Depreciation of plant and equipment	35,000
Power and light	22,500
Insurance and property taxes	15,500
Maintenance	9,700

During March, the costs incurred in Department 5 of Plant M were materials, $204,000; factory wages, $285,000; supervisory salaries, $63,600; depreciation of plant and equipment, $35,000; power and light, $21,360; insurance and property taxes, $14,400; maintenance, $9,456.

Question Content Area

a. Prepare a budget performance report for the supervisor of Department 5 of Plant M for the month of March. Enter all amounts as positive values.

	Budget	Actual	Over Budget	Under Budget
Materials	$________________	$________________		$________________
Factory wages	________________	________________	$________________
Supervisory salaries	________________	________________		________________
Depreciation of plant and equipment	________________	________________
Power and light	________________	________________		________________
Insurance and property taxes	________________	________________		________________
Maintenance	________________	________________		________________
	$________________	$________________	$________________	$________________