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Please Help with this Accounting Problem

by | Nov 30, 2023 | questions

4.

value:
10.00 points

d.

Find the direct materials variances (materials price variance and quantity variance). (Leave no
cells blank – be certain to enter “0” wherever required. Indicate the effect of each variance by selecting Favorable, Unfavorable,
and “None” for no effect
(i.e., zero variance). Input all amounts as positive
values.
Enter your answers in dollars not in pounds. Omit the “$” sign in your response.)

Direct material variances
Material quantity variance $ (Click to select)FavourableNoneUnfavorable
Material price variance $ (Click to select)NoneFavourableUnfavorable

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5.

value:
10.00 points

e-1

Find the total over- or underapplied (both fixed and variable) overhead. Would cost of goods sold be a larger or smaller expense
item after the adjustment for over- or underapplied overhead? (Omit the “$” sign in your
response.)

(Click to select)Over appliedUnder applied overhead $

e-2

Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or underapplied overhead?

Smaller expense
Larger expense

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6.

value:
10.00 points

f.

Calculate the actual plant operating profit for the year. (Omit the “$” sign in your
response.)

Operating profit $

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7.

value:
10.00 points

g.

Prepare a flexible budget for the Bellingham plant for its first year of operations. (Input all
amounts as positive values. Omit the “$” sign in your response.)

(Click to select)Flexible budget operating profitFlexible budget non-operating profitCost of goods soldOperating incomeOperating loss $
(Click to select)Operating lossCost of goods soldAdd: Actual operating profitLess: Actual operating profitOperating income

Flexible budget variance $


(Click to select)Cost of goods soldBudgeted operating profitOperating incomeBudgeted non-operating profitOperating loss
(Click to select)Add: Actual operating profitLess: Actual operating profitOperating incomeOperating lossCost of goods sold

Master budget variance $



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8.

value:
10.00 points

h.

Assume Utease Corporation is planning to change its evaluation of business operations in all plants from the profit center format
to the investment center format. If the average invested capital at the Bellingham plant is $8,950,000, compute the return on
investment (ROI) for the first year of operations. Use the DuPont method of evaluation to compute the return on sales (ROS) and
capital turnover (CT) for the plant. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

ROI %
ROS %
Capital Turnover %

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