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.