This problem continues the Daniels Consulting situation from Problem P23-35

This problem continues the Daniels Consulting situation from Problem P23-35 of Chapter 23. Daniels Consulting reported 2018 sales of $3,200,000 and operating income of $185,600. Average total assets during 2018 were $640,000. Daniels’s target rate of return is 17%.
In problem Assume Daniels has created a standard cost card for each job. Standard direct materials per job include 10 software packages at a cost of $900 per package. Standard direct labor costs per job include 105 hours at $100 per hour. Daniels plans on completing 12 jobs during March 2018. Actual direct materials costs for March included 90 software packages at a total cost of $81,450. Actual direct labor costs included 110 hours per job at an average rate of $107 per hour. Daniels completed all 12 jobs in March.
Calculate Daniels’s profit margin ratio, asset turnover ratio, ROI, and RI for 2018.
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.

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