Jims Landscaping, Banner Inc., Photos Inc., Grater Inc., Three Divisions (XYZ) w/ Solutions!!

Jims Landscaping, Banner Inc., Photos Inc., Grater Inc., Three Divisions (XYZ) w/ Solutions!!

1. Jims Landscaping is in a business of maintaining and improving yards in the surrounding areas. The company bases its overhead cost budgets on the following data:Variable overhead costs:Supplies $4 per yardMachine maintenance $2 per yardChemicals $6 per yard Fixed Overhead:Salaries and wages $2,300 per monthDepreciation $800 per monthUtilities $400 per monthRent $1,100 per month In June the following actual costs were incurred for 83 yards:Supplies $320Machine maintenance $180Chemicals $500Salaries and wages $2,500Depreciation $800Utilities $450Rent $1,100 Construct a flexible budget performance report using the data provided: Show computations2. Banner Inc bases its variable overhead performance report on the actual direct labor hours of the period. Data concerning the most recent year that ended on December 31 are as follows: Budgeted direct labor hours 12,000Actual direct labor hours 13,500Standard direct labor hours allowed 13,000 Cost formula (per direct labor hours):Indirect labor $0.85Supplies $0.30Electricity $0.15 Actual costs incurred:Indirect labor $11,600Supplies $4,000Electricity $2,050 Management would like to compute both the spending and the efficiency variances for the variable overhead in the companys variable overhead performance report. Prepare a variable overhead performance report with both the variable overhead spending and the efficiency variances. Show computations and details. 3. Photos Inc has a standard cost system in which it applies overhead to products based on the standard direct labor hours allowed for the actual output of the period. Data concerning the most recent year appears below:Total budgeted fixed overhead cost for the year $250,000Actual fixed overhead cost for the year $265,000Budgeted standard direct labor hours 40,000Actual direct labor hours 41,000Standard direct labor hours allowed for the actual output 40,800 a. Compute the fixed portion of the predetermined overhead rate for the year. Show computationsb. Compute the fixed overhead budget and volume variances. Show computations4. Grater Inc sells product A and product B. Revenue and cost information relating to the products follow:Product A Product BSelling Price per unit $48.00 $65.00Variable expenses per unit $24.50 $29.20Traceable fixed expenses per year $144,000 $101,500Common fixed expenses in the company total $390,000 annually. Last year the company produced and sold 10,000 of Product A and 15,000 of Product B.Prepare a contribution format income statement for the year segmented by product lines. Show details clearly.5. Selected sales and operating data for three divisions of three different companies are given below:Division X Division Y Division ZSales $900,000 $750,000 $600,000Average operating assets $600,000 $150,000 $200,000Net operating income $54,000 $30,000 $10,000Minimum required rate of return 10% 16% 8%a. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. Show computations b. Compute the residual income for each division. Show computations c. Under which of these methods would they accept an opportunity with a 15% return. Show computations and details


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