Chapter 23 Exercises

# Chapter 23 Exercises - \$1,100,000 \$162,400 \$406,000...

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E23-16 (10-15 min) Req. 1 Flexible Budget Flexible Variance % Variance Racer – Subunit X Actual Budget (U or F) (U or F) Direct materials \$28,600 \$26,800 \$1,800 U 6.72% % U Direct labor 13,100 13,900 (\$800) F -5.76% % F Indirect labor 26,300 23,000 \$3,300 U 14.35% % U Utilities 12,300 11,200 \$1,100 U 9.82% % U Depreciation 30,000 30,000 \$0 0.00% % Repairs and maintenance 4,500 5,600 (\$1,100) F -19.64% % F Total \$114,800 \$110,500 4,300 U 3.89% % U

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E23-18 (10-15 min) Sales Total Assets Current Liabilities Residential \$580,000 \$63,700 \$196,000 \$66,000 Professional
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Unformatted text preview: \$1,100,000 \$162,400 \$406,000 \$147,000 Residential Division Professional Division Req. 1 Req. 2 Req. 3 Req. 1 Req. 2 Req. 3 ROI = Profit Margin x Capital Turnover ROI = Profit Margin x Capital Turnover = Operating Income / Sales x Sales / Total Assets = Operating Income / Sales x Sales / Total Assets = \$63,700 / \$580,000 x \$580,000 / \$196,000 = \$162,400 / \$1,100,000 x \$1,100,000 / \$406,000 = 0.1098 x 2.9592 = 0.1476 x 2.7094 = 0.3250 = 0.4000 Operating Income...
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## This note was uploaded on 09/11/2011 for the course TERM 1 taught by Professor Smith during the Spring '11 term at FIT.

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Chapter 23 Exercises - \$1,100,000 \$162,400 \$406,000...

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