31. Dukane Company expects to produce 1,200,000 units of Product XX in 2009. Monthly production is expected to range from 80,000 to 120,000 units. Budgeted variable manufacturing costs per unit are: direct materials $4, direct labour $6, and overhead $8. Budgeted fixed manufacturing costs per unit for amortization are $2 and for supervision are $1. In March 2009, the company incurs the following costs in producing 100,000 units: direct materials $425,000, direct labour $590,000, and variable overhead $805,000. Prepare a flexible budget report for March. (If answer is zero, please enter 0, do not leave any fields blank.)

DUKANE COMPANY
Manufacturing Flexible Budget Report
For the Month Ended March 31, 2009
Budget / Actual / Difference
Favourable F
Units produced / / / Unfavourable U
Variable costs
Direct materials / $ / $ / $ /
Direct labour / / / /
Overhead / / / /
Total variable costs / $ / $ / $ /
Fixed costs
Amortization / / /
Supervision / / /
Total fixed costs / / /
Total costs / $ / $ / $ /

Were costs controlled?

32. For its three investment centres, Stahl Company accumulates the following data:

I / II / III
Sales / $2,000,000 / $3,000,000 / $4,000,000
Controllable margin / 1,200,000 / 2,000,000 / 3,200,000
Average operating assets / 5,000,000 / 8,000,000 / 10,000,000

The centres expect the following changes in the next year: (I) increase sales 15%; (II) decrease costs $200,000; (III) decrease average operating assets $400,000. Calculate the expected return on investment (ROI) for each centre. Assume centre I has a contribution margin percentage of 75%. (Round your answers to 1 decimal place.)

Centre I: / / %
Centre II: / / %
Centre III: / / %

33. Presented below is information related to the Prince George Division of Cut Wood, Inc.

Contribution margin / $1,200,000
Controllable margin / $800,000
Average operating assets / $3,200,000
Minimum rate of return / 16%

Calculate the division's return on investment and residual income. (Round your answers to 0 decimal places.)

Return on investment %

Residual income $

34.Alcore Company estimates that 240,000 direct labour hours will be worked during 2009 in the assembly department. On this basis, the following budgeted manufacturing overhead data are calculated.

Variable Overhead Costs / Fixed Overhead Costs
Indirect labour / $ 72,000 / Supervision / $ 72,000
Indirect materials / 48,000 / Amortization / 36,000
Repairs / 24,000 / Insurance / 12,000
Utilities / 50,400 / Rent / 9,000
Lubricants / 9,600 / Property taxes / 6,000
$204,000 / $135,000

It is estimated that direct labour hours worked each month will range from 18,000 to 24,000 hours.

During January, 20,000 direct labour hours were worked and the following overhead costs were incurred.

Variable Overhead Costs / Fixed Overhead Costs
Indirect labour / $ 6,200 / Supervision / $ 6,000
Indirect materials / 3,600 / Amortization / 3,000
Repairs / 1,600 / Insurance / 1,000
Utilities / 3,300 / Rent / 800
Lubricants / 830 / Property taxes / 500
$15,530 / $11,300

(a) Complete a monthly flexible manufacturing overhead budget for each increment of 2,000 direct labour hours over the relevant range for the year ending December 31, 2009.

ALCORE COMPANY
Monthly Flexible Manufacturing Overhead Budget
Assembly Department
For the Year 2009
Activity level
Direct labour hours / 18,000 / 20,000 / 22,000 / 24,000
Variable costs
Indirect labour / $ / $ / $ / $
Indirect materials / / / /
Repair / / / /
Utilities / / / /
Lubricants / / / /
Total variable / / / /
Fixed costs
Supervision / / / /
Amortization / / / /
Insurance / / / /
Rent / / / /
Property taxes / / / /
Total fixed / / / /
Total costs / $ / $ / $ / $

(b) Complete a manufacturing overhead budget report for January. (If a box should be blank enter a 0, note all boxes must be filled to be correct.)

ALCORE COMPANY
Manufacturing Overhead Budget Report (Flexible)
Assembly Department
For the Month Ended January 31, 2009
Difference
Favourable / F
Budget at / Actual Costs / Unfavourable / U
Direct labour hours (DLH) / 20,000 DLH / 20,000 DLH / No Difference / N/A
Variable costs
Indirect labour / $ / $ / $ /
Indirect materials / / / /
Repair / / / /
Utilities / / / /
Lubricants / / / /
Total variable / / / /
Fixed costs
Supervision / / / /
Amortization / / / /
Insurance / / / /
Rent / / / /
Property taxes / / / /
Total fixed / / / /
Total costs / $ / $ / $ /