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Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, 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 17,000 units or 18,700 direct labor hours):
Direct materials (1.8 pounds at $10)	$	18
Direct labor (1.1 hours at $60)		66
Variable overhead (1.1 hours at $10)		11
Fixed overhead (1.1 hours at $20)		22
Standard cost per unit	$	117
Budgeted selling and administrative costs:
Variable	$	4	per unit
Fixed	$	1,500,000

Expected sales activity: 13,000 units at $350 per unit

Desired ending inventories: 12% of sales

Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity:

Units produced		16,000
Units sold		14,500
Unit selling price	$	345
Direct labor hours worked		17,100
Direct labor costs	$	1,043,100
Direct materials purchased		32,800	pounds
Direct material costs	$	328,000
Direct material used		32,800	pounds
Actual fixed overhead	$	1,000,000
Actual variable overhead	$	87,000
Actual selling and administrative costs	$	1,652,000

In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold. C. Find the direct labor variances. Indicate if they are favorable or unfavorable and why they would be considered as such. (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) Labor Efficiency Variance = ____________________ Labor Rate Variance = ___________________ d. Find the direct materials variances (materials price variance and quantity variance). (Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Enter your answers in dollars not in pounds. Omit the "$" sign in your response.) Material Quantity Variance = _______________ Material Price Variance = __________________ e. Find the total over- or underapplied (both fixed and variable) overhead. Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or underapplied overhead? (Omit the "$" sign in your response.) (Over/Underapplied) Overhead = $_________________ f. Calculate the actual plant operating profit for the year. (Omit the "$" sign in your response.) Operating Profit = _________________ g. Prepare a flexible budget for the Bellingham plant for its first year of operations. (Input all amounts as positive values. Omit the "$" sign in your response.) 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 Bellingham plant is $9,070,000, 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 answers to 2 decimal places. Omit the "%" sign in your response.) ROI = ________% ROS = ________% Capital Turnover = ________%

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