Namath manufacturing co manufactures a variety tools and, Ask an Expert

Accounting

Namath Manufacturing Co manufactures a variety tools and industrial equipment. The company operates through 3 divisions. Ea divisions is an investment center. Operating data for the Home Division for the year ended Dec 31, 2012, and relevant budget data are as follows:

Sales $1,500,00 (actual) $100,000 favorable (comparison with budget CWB)

Variable cost of goods sold $700,000 (actual)60,000 unfavorable (CWB)

Variable selling & admin expenses 125,000(actual) 25,000 unfavorable (CWB)

Controllable fixed cost of goods sold 170,000 (actual) ON TARGET - CWB

Controllable fixed selling & admin expenses 80,000 (actual) ON TARGET (CWB)

Average operating assets for the year for the Home Division were $2,500,000 which was also the budgeted amount.

a) Prepare a responsibility report in thousands of dollars for the HOme Division.

b) Evaluate manager's performance. Which items will likely be investigated by top management?

c) Compute the expected ROI in 2013 for the Home Division, assuming the following independent changes to actual data.

1) Variable cost of goods sold is decreased by 6%

2) Average operating assts are decreased by 10%

3) Sales are increased by $200,000 and this increase is expected to increase contribution margin by $90,000.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91722796

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question revenue from contracts with customers

Question: Revenue From Contracts With Customers Examples Part I: For each of the scenarios determine if a contract exists by applying the 5 requirements for a contract to exist under ASC 606. 1. For each of the following ...

Question each part should be supported with extensive text

Question: Each part should be supported with extensive text explaining and supporting the details of your plan. Part Two - List of financial goals (short, medium, and long-term) ? ?You should have a minimum of 3 for each ...

Question - zhang company reported cost of goods sold of

Question - Zhang Company reported Cost of goods sold of $841,000, beginning Inventory of $38,400 and ending Inventory of $46,900. Calculate the average Inventory amount?

Quesiton company general mills incfinancial ratios are used

Quesiton: Company: General Mills Inc Financial ratios are used to assess a company's strengths and weaknesses. One way to use ratios is to compare the company under consideration to the industry average. Deriving meaning ...

Question - a machine is purchased january 1 at a cost of

Question - A machine is purchased January 1 at a cost of $56,290. It is expected to produce 129,000 units and have a salvage value of $3,400 at the end of its useful life. Units produced are as follows: Year 1 10,400 Yea ...

Question - the inouyes filed jointly in 2018 their agi is

Question - The Inouyes filed jointly in 2018. Their AGI is $78,000. They reported $2,000 of qualified business income and $22,000 of itemized deductions. They have two children, one of whom qualifies as their dependent a ...

Question - richard starts his own business in 2016 with

Question - Richard starts his own business in 2016 with $2,000 owner's capital. In 2016, he bought 10 textbooks at $1,000 and sold 5 of them at $600. There is no other transaction during 2016. What is the cost of goods s ...

Question - on january 1 2016 sinclair corp bought equipment

Question - On January 1, 2016, Sinclair Corp. bought equipment using a $10,000,000 zero-interest-bearing bond due on January 1, 2021. The prevailing rate of interest for a note like this on January 1, 2016 was 7%. What a ...

Question - during october a firm had the following

Question - During October a firm had the following transactions involving revenue and expense: Paid $1325 for rent October Provided services foe $3000 in cash Paid 300 for October phone service Provided service for 2150 ...

Question - a machine costing 350000 has a salvage value of

Question - A machine costing $350,000 has a salvage value of $30,000 and a useful life of 10 years. They expect the machine to produce 500,000 units. In year 1 it produced 40,000 and in year 2 30,000. Using the units of ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert