Name: ACCT 285 - Practice Set #7 (Chapters 10-12 8: Appendix 6A) Chapter 10 Mickey's Amusements Mickey's Amusements manufactures ride vehicles for roller coasters. One of their products is a seat with a harness for coasters that have inversions. Mickey's uses a standard cost system for all products. According to the standards set for the seat with a harness. the factory should work 1.100 hours each month to produce 2.200 seats. At the standard. each seat requires 3.0 sq. ft of material. The standard costs associated with this production are: Direct materials $44,220 5 6.70 per sq. ft. Direct labor $6,600 5 6.00 per hour Variable manufacturing 0H (based on direct labor hours} $3,520 5 3.20 During January. the factory worked 1.000 direct labor hours and produced 2.200 seats. The following actual costs incurred during January are: Total Direct materials [7,400 sq. Ft.) $40,700 Direct labor $8.140 Variable manufacturing OH (based on direct labor hours} $3,960 All materials purchased in January were used in production Calculate the following (be sure to label variances as FIU): 1} What is the materials price variance? 2) What is the materials quantity variance? 3) What is the labor rate variance? 4) What is the labor efficiency variance? 5) What is the variable OH rate variance?6} What is the variable OH efficiency variance? Chapter 11 Sweet Treats Sweet Treats had the following results from 2022 operations: Sales $14,000,000 -Variab|e Expenses 9,560,000 Contribution Margin 4,440,000 -Fixed Expenses 3,740,000 Net operating income $ 700,000 Average operating assets $ 7,000,000 1} Calculate turnover in 2022 for Sweet Treats. 2} Calculate return on investment (ROI) in 2022 for Sweet Treats. Midwest Ice Fishing Midwest Ice Fishing Excursions is considering an investment of $700,000 to enhance their excursion offerings. The following table details the characteristics of the potential investment: Sales increase $2,240,000 Contribution margin 40% of increased sales Fixed expenses $739,200 1} What is the margin of the potential investment for Midwest Ice Fishing Excursions? Best Italian Eats The Pizza division of Best Italian Eats had average operating assets of $800,000 and net operating inc0me of $81,300 in 2022. The minimum required rate of return for evaluation purposes is 10%. 1} What was the residual Income in 2022 for the Pizza division? Stavos Company Stavos Company's Screen Division produces a screen that is used by manufacturers of HDTVs. Sales and cost data on the screens follow: Market selling price per unit 5165 Variable costs per screen $112 Fixed costs per screen {based on capacity} $10 Capacity in units 30,000 Stavos Company has a TV Division that could use this screen in their manufacturing of HDTVs. TheTV Division will need 8.000 screens per year. It has received a quote of $159 per screen from another manufacturer. Stavos Company evaluates division managers on the basis of divisional prots. Assume the Screen Division is selling 26,500 screens per year to outside customers. 1} From the standpoint of the Screen Division. what is the lowest acceptable transfer price for screens sold to the TV Division? [round to the nearest dollar) 2} From the standpoint of the TV Division, what is the highest acceptable transfer price for screens acquired from the Screen Division? 3} What is the range of acceptable transfer prices (if any) between the two divisions