Exam 10: Flexible Budgets and Performance Analysis

During the most recent month at Luinstra Corporation,queue time was 4.5 days,inspection time was 0.8 day,process time was 1.9 days,wait time was 5.1 days,and move time was 0.7 day. Required: a.Compute the throughput time. b.Compute the manufacturing cycle efficiency (MCE). c.What percentage of the production time is spent in non-value-added activities? d.Compute the delivery cycle time.

Daab Products is a division of a major corporation.The following data are for the most recent year of operations: The division's turnover used to compute ROI is closest to:

The Portland Division's operating data for the past two years is as follows: The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The average operating assets for Year 2 were:

Inspection Time is generally considered to be non-value-added time.

Net operating income is income after interest and taxes.

Ricric Corporation has provided the following data for one of its products: The manufacturing cycle efficiency for this operation is closest to:

Last year the Uptown Division of Gorcen Enterprises had sales of $300,000 and a net operating income of $24,000.The average operating assets at Uptown last year amounted to $120,000. Last year at Uptown the margin used to calculate ROI amounted to:

The Portland Division's operating data for the past two years is as follows: The Portland Division's margin in Year 2 was 150% of the margin for Year 1. The turnover for Year 1 was:

The Casket Division of Landazuri Corporation had average operating assets of $620,000 and net operating income of $86,000 in February.The company uses residual income to evaluate the performance of its divisions,with a minimum required rate of return of 14%. Required: What was the Casket Division's residual income in February?

Residual income:

Iba Industries is a division of a major corporation.The following data are for the latest year of operations: Required: What is the division's residual income?

Hardenburg Corporation keeps careful track of the time required to fill orders.The times required for a particular order appear below: Required: a.Determine the throughput time.Show your work! b.Determine the manufacturing cycle efficiency (MCE),Show your work! c.Determine the delivery cycle time.Show your work!

Queue time is considered value-added time.

The following information relates to last year's operations at the Paper Division of Germane Corporation: What was the Paper Division's net operating income last year?

Hysong Corporation uses residual income to evaluate the performance of its divisions.The minimum required rate of return for performance evaluation purposes is 11%.The Games Division had average operating assets of $530,000 and net operating income of $56,200 in June. Required: What was the Games Division's residual income in June?

The following information relates to the Quilt Division of TDS Corporation for last year: What was the Quilt Division's return on investment (ROI)for last year?

Guerlane Fragrance Corporation has a perfume division,Essense,and a cologne division,Karisma.The following information relates to last year's operations at each division.The minimum required rate of return is the same for both divisions. Required: Compute the unknown quantities above [(a)through (g)].SHOW YOUR COMPUTATIONS.

Gaal Industries is a division of a major corporation.Last year the division had total sales of $26,110,000,net operating income of $1,801,590,and average operating assets of $7,000,000.The company's minimum required rate of return is 18%. Required: a.What is the division's margin? b.What is the division's turnover? c.What is the division's return on investment (ROI)?

CS Company has a profit margin of 11%.Sales are $320,000,net operating income is $35,200,and average operating assets are $128,000.What is the company's return on investment (ROI)?

Ricric Corporation has provided the following data for one of its products: The throughput time for this operation is: