Clicker Question Preparation Guide Ch 10 Clicker questions will be asked in class based on your completion of this preparation guide Example in class question Question 1 What are the total manufacturing costs when 900 units are produced You will not have time to complete this guide in class 1 Cyber Construction s manufacturing costs for August when production was 1 000 units appear below Direct Materials Direct Labor Variable Overhead Factory Depreciation Factory Supervisory Salaries Other Fixed Factory Costs 11 000 8 500 6 000 4 000 9 800 1 500 Compute the flexible budget manufacturing cost amount for a month when 900 units are produced Direct Materials Direct Labor Variable Overhead Factory Depreciation Factory Supervisory Salaries Other Fixed Factory Costs Total 2 Point Inc produces men s shirts The following budgeted and actual amounts are for 2018 Cost Direct materials Direct labor Fixed overhead Budgeted Amounts at 2 500 units Actual Amounts at 2 900 units 55 000 65 000 80 000 83 000 30 000 34 500 Prepare a responsibility report for Point Inc for the year POINT INC Manufacturing Performance Responsibility Report For the Year Ended December 31 2018 Budget 2 900 units Direct Materials Direct Labor Fixed Overhead Total costs Actual 65 000 83 000 34 500 Differences 3 The service division of Smithberg Industries reported the following results for 2018 Sales Variable Costs Controllable Fixed Costs Average Operating Assets 800 000 500 000 125 000 825 000 Compute the controllable margin and the return on investment for 2018 4 Management is considering the following independent courses of action in 2019 in order to maximize the return on investment for this division Based on original financial information above Compute the controllable margin and the expected ROI for each proposed alternative a Reduce average operating assets by 125 000 with no change in controllable margin b Increase sales by 100 000 with no change in the contribution margin percentage contribution margin ratio
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