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Comprehensive Problem 6 (Algo) [The following information applies to the questions displayed below.] Utease Corporation has several production plants nationwide. A newly opened plant in Dubuque produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 29,000 units or 55,100 direct labor hours): Expected sales activity: 25,000 units at $500 per unit Desired ending inventories: 16% of sales Assume this is the first year of operations for the Dubuque plant. During the year, the company had the following activity. In addition, all over-or underapplied overhead and all product cost variances are adjusted to cost of goods sold. Comprehensive Problem 6 (Algo) Part b b. Prepare a budgeted responsibility income statement for the Dubuque plant for the coming year. c. Find the direct labor variances. Indicate if they are favorable or unfavorable. (Do not round your intermediate calculations. Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect.) d. Find the direct materials variances (materials price variance and quantity variance). (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).) e-1. Find the total over-or underapplied (both fixed and variable) overhead. e-2. Would cost of goods sold be a larger or smaller expense item after the adjustment for over-or underapplied overhead? Complete this question by entering your answers in the tabs below. Find the total over-or underapplied (both fixed and variable) overhead. f. Calculate the actual plant operating profit/loss for the year. 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 Dubuque plant is $9,310,000. 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 percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34.))

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