What explains the difference between forecasted and actual revenue for the chicago plantduring March 2000? What other information would you collect to explain this difference?

Exhibit 1 G.G. Toys: Operating Results (March 2000)

Corporate Level	Chicago Facility	Springfield Facility	TOTAL
Sales	$786,000	$125,400	$911,400
Direct labor	72,000	22,500	94,500
Direct materials	144,000	36,000	180,000
Manufacturing Overhead
Machine related	112,000		112,000
Plant management and facilities-related costs	33,333	6,667	40,000
Setup labor	13,333		13,333
Receiving and production control	60,000	3,000	63,000
Packaging and shipping	50,000	3,000	53,000
Total manufacturing overhead	$268,666	$12,667	$281,333
Selling, general, and administrative 296,650			296,650
Operating income (pretax)			$58,917

Source: Casewriter.

Exhibit 2 Product Profitability Analysis (March 2000)

Specialty- Branded Doll

Geoffrey Doll #106 Cradles

Direct labor cost($)	3.00	3.75	7.50
Direct material cost ($)	5.00	6.00	12.00
Manufacturing overhead" ($)	11.19	13.99	4.20
Standard unit cost ($)	19.19	23.74	23.70
Selling price ($)	21.00	36.00	30.00
Margin($)	9%	34%	21%

Source: Casewriter.

achicago overhead allocation percentage of direct labor cost= 373% ($268,666/$72,000); Springfield overhead allocation percentage of direct labor cost= 56% ($12,667/$22,500).

Exhibit 3 Product Data

Specialty-

Product Lines Geoffrey Doll Branded Doll Cradles

Materials cost per unit

Production-run direct labor per unit

Production-run direct labor $/unit @ $15/DL hours

(including employee benefits)

Machine hours per unit

$5 $6 $12

.20 DL hours .25 DL hours .50 DL hours

$3.00 $3.75 $7.50

0.5 0.3 0.0

Source: Casewriter.

Exhibit 4 Monthly Production and Operating Statistics (March 2000)

Chicago Plant Springfield Plant

		Other
	Specialty-	Specialty-
Geoffrey	Branded	Branded
Doll	Doll#106	Dolls	Total		Cradles	Total

Production (units)	7,500	4,000	12,500	24,000	3,000	3,000
Machine hours	3,750	1,200	6,250	11,200	0	0
Setups	10	100	50	160	0	0
Production runs	10	100	50	160	1
Number of shipments	10	220	70	300	50	50