Visit the book's companion website at www.wiley.com/college/weygandt. and choose the Student Companion site to access Exercise Set B. Problems: Set A P24-1A Chamberlin Company estimates that 360.000 direct labor hours will be worked dur- ing the coming year, 2012, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year. Fixed Overhead Costs Variable Overhead Costs Supervision $ 90,000 Indirect labor $126.000 Depreciation 60.000 Indirect materials 90.000 Insurance 30.000 Repairs 54.000 Rent 24,000 Utilities 72.000 Property taxes 18,000 Lubricants 18.000 $222.000 S360.000 It is estimated that direct labor hours worked each month will range from 27.000 to 36,000 hours. During October, 27,000 direct labor hours were worked and the following overhead costs were incurred. Fixed overhead costs: Supervision $7.500. Depreciation $5.000. Insurance $2,470, Rent $2.000. and Property taxes $1.500. Variable overhead costs: Indirect labor $10,360. Indirect materials. $6,400, Repairs $4,000, Utilities $5,700, and Lubricants $1.640. Instructions (a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3.000 direct labor hours over the relevant range for the year ending December 31, 2012. (b) Prepare a flexible budget report for October. (c) Comment on management's efficiency in controlling manufacturing overhead costs in October On target On target P24-5A Namath Manufacturing Company manufactures a variety of tools and industrial equip Prepar ment. The company operates through three divisions. Each division is an investment center. for an Operating data for the Home Division for the year ended December 31, 2012. and relevant budget corrent data are as follows so Actual Comparison with Budget Sales $1,500,000 $100,000 favorable Variable cost of goods sold 700.000 60.000 unfavorable Variable selling and administrative expenses 125.000 25.000 unfavorable Controllable fixed cost of goods sold 170.000 Controllable fixed selling and administrative expenses 80,000 Average operating assets for the year for the Home Division were $2.500.000 which was also the budgeted amount Instructions (a) Prepare a responsibility report (in thousands of dollars) for the Home Division. tal (b) Evaluate the manager's performance. Which items will likely be investigated by top management? Ae (c) Compute the expected ROI in 2013 for the Home Division, assuming the following indepen- dent changes to actual data. (1) Variable cost of goods sold is decreased by 6%. (2) Average operating assets are decreased by 10%. (3) Sales are increased by $200.000. and this increase is expected to increase contribution margin by $90,000. BE