ACC 349 Week 4 Assignment Help 2

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:

Puget Sound Divers
Planning Budget
For the Month Ended May 31

  Budgeted diving-hours (q)

300  

   Revenue ($460.00q)

$

138,000  

  Expenses:

       Wages and salaries ($11,700 + $126.00q)

49,500  

       Supplies ($3.00q)

900  

       Equipment rental ($2,200 + $25.00q)

9,700  

        Insurance ($4,200)

4,200  

       Miscellaneous ($540 + $1.48q)

984  

  Total expense

65,284  

  Net operating income

$

72,716  

Required:

During May, the company’s activity was actually 290 diving-hours. Complete the following flexible budget for that level of activity.

Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company’s planning budget for July appears below:

Flight Café
Planning Budget
For the Month Ended July 31

  Budgeted meals (q)

23,000  

  Revenue ($4.00q)

$

92,000  

  Expenses:

      Raw materials ($2.10q)

48,300  

      Wages and salaries ($6,100 + $0.20q)

10,700  

      Utilities ($2,000 + $0.05q)

3,150  

      Facility rent ($3,900)

3,900  

      Insurance ($2,200)

2,200  

      Miscellaneous ($600 + $0.10q)

2,900  

  Total expense

71,150  

  Net operating income

$

20,850  

In July, 24,000 meals were actually served. The company’s flexible budget for this level of activity appears below:

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 pounds of oysters in August. The company’s flexible budget for August appears below:

Quilcene Oysteria
Flexible Budget
For the Month Ended August 31

  Actual pounds (q)

7,100  

  Revenue ($4.20q)

$

29,820  

  Expenses:

      Packing supplies ($0.35q)

2,485  

      Oyster bed maintenance ($3,100)

3,100  

      Wages and salaries ($2,200 + $0.40q)

5,040  

      Shipping ($0.60q)

4,260  

      Utilities ($1,290)

1,290  

      Other ($510 + $0.01q)

581  

  Total expense

16,756  

  Net operating income

$

13,064  

The actual results for August appear below:

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below:

Division

Queensland

New South Wales

  Sales

$

2,176,000   

$

3,445,000  

  Average operating assets

$

640,000   

$

650,000  

  Net operating income

$

250,240   

$

275,600  

  Property, plant, and equipment (net)

$

264,000   

$

214,000  

Required:

1.

Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.)

2.

Which divisional manager seems to be doing the better job?