Alton Inc. is working at full production capacity producing 40,000 units of a unique product. Manufacturing costs per unit for the product are as follows: Direct materials $ 11 Direct labor 10 Manufacturing overhead 12 Total manufacturing cost per unit $ 33 The per-unit manufacturing overhead cost is based on a $6 variable cost per unit and $240,000 fixed costs. The nonmanufacturing costs, all variable, are $8 per unit, and the sales price is $68 per unit. Sports Headquarters Company (SHC) has asked Alton to produce 6,600 units of a modification of the new product. This modification would require the same manufacturing processes. However, because of the nature of the proposed sale, the estimated nonmanufacturing costs per unit are only $4 (not $8). Alton would sell the modified product to SHC for $53 per unit. Required 1-a. Calculate the contribution margin for 6,600 units for both the current and special order. 1-b. Should Alton produce the special order for SHC? 2. Suppose that Alton Inc. had been working at less than full capacity to produce 34,000 units of the product when SHC made the offer. What is the minimum price per unit that Alton should accept for the modified product under these conditions?

MicroMem is a​ fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectable before inspection of finished goods. Spoiled units are disposed of at zero net disposal value. MicroMem uses the​ weighted-average method of process costing. Summary data for September 2017 are as​ follows:

Imagine that you are a new college professor developing your first lecture on the Capital Asset Pricing Model. How would you explain the concept to your incoming freshman class?

In your discussion, include the relationship between the expected rate of return on a particular investment and the expected rate of return for a portfolio with multiple investments. What is the relationship between systematic and unsystematic risk? Analyze how the risk relationship related to the beta of an investment.

On August 31, 2019, the balance in the checkbook and the Cash account of the Dry Creek Bed and Breakfast was $12,370. The balance shown on the bank statement on the same date was $13,247.

Notes

1. The firm’s records indicate that a $1,550 deposit dated August 30 and a $711 deposit dated August 31 do not appear on the bank statement.
2. A service charge of $7 and a debit memorandum of $370 covering an NSF check have not yet been entered in the firm’s records. (The check was issued by Art Corts, a credit customer.)
3. The following checks were issued but have not yet been paid by the bank:
   

4. A credit memorandum shows that the bank collected a $2,134 note receivable and interest of $73 for the firm. These amounts have not yet been entered in the firm’s records.
   

Required:

1. Prepare a bank reconciliation statement for the firm as of August 31.
2. Record general journal entries for items on the bank reconciliation statement that must be journalized.

Analyze:
What effect did the journal entries recorded as a result of the bank reconciliation have on the fundamental accounting equation?

Problem 10-13 Basic Variance Analysis; the Impact of Variances on Unit Costs [LO10-1, LO10-2, LO10-3]

Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May.

The production superintendent was pleased when he saw this report and commented: “This $0.84 excess cost is well within the 4 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product."

Actual production for the month was 15,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials.

Required:

1. Compute the following variances for May:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. How much of the $0.84 excess unit cost is traceable to each of the variances computed in (1) above.

3. How much of the $0.84 excess unit cost is traceable to apparent inefficient use of labor time?

Equivalent Units of Production

The Converting Department of Hopkinsville Company had 640 units in work in process at the beginning of the period, which were 70% complete. During the period, 13,600 units were completed and transferred to the Packing Department. There were 720 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production.

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

1. Assume that Mr. Shulman owned 100 shares of Exxon Mobile stock and 250 shares of General Electric stock when he died on December 1. The highest selling price for Exxon Mobile on that day was 41.24; the lowest selling price was 40.40. The highest selling price for GE on that day was 39.35; the lowest selling price was 38.95. Calculate the fair market value of all of the stock as of December 1.

2. In December 2003, Mrs. Nichols gave gifts of $20,000 to her son, Bruce; $20,000 to her son and daughter-in-law, David and Cheryl; $15,000 to a favorite nephew; and $10,000 to each of her seven grandchildren. What amount must Mrs. Nichols report to the IRS on her 2003 gift-tax return? Please show your calculations.

Direct Method, Reciprocal Method, Overhead Rates

Macalister Corporation is developing departmental overhead rates based on direct labor hours for its two production departments—Molding and Assembly. The Molding Department employs 23 people, and the Assembly Department employs 78 people. Each person in these two departments works 2,150 hours per year. The production-related overhead costs for the Molding Department are budgeted at $186,000, and the Assembly Department costs are budgeted at $84,000. Two support departments—Engineering and General Factory—directly support the two production departments and have budgeted costs of $204,000 and $370,000, respectively. The production departments’ overhead rates cannot be determined until the support departments’ costs are properly allocated. The following schedule reflects the use of the Engineering Department’s and General Factory Department’s output by the various departments.

For all requirements, round allocation ratios to four significant digits and round allocated costs to the nearest dollar.

Required:

1. Calculate the overhead rates per direct labor hour for the Molding Department and the Assembly Department using the direct allocation method to charge the production departments for support department costs. Round final answers to the nearest cent.

2. Calculate the overhead rates per direct labor hour for the Molding Department and the Assembly Department using the reciprocal method to charge support department costs to each other and to the production departments. Round final answers to the nearest cent. Round your intermediate calculations to four decimal places.

Bill​ (age 42) and Molly Hickok​ (age 39), residents of​ Anchorage, Alaska, recently told you that they have become increasingly worried about their retirement.​ Bill, a public school​ teacher, dreams of retiring at 62 so they can travel and visit family.​ Molly, a​ self-employed travel​ consultant, is unsure that their current retirement plan will achieve that goal. She is concerned that the cost of living in Alaska along with their lifestyle have them spending at a level they could not maintain. Although they have a nice income of more than $100,000 per​ year, they got a late start planning for​ retirement, which is now just 20 years away. Bill has tried to plan for the future by contributing to his​ 403(b) plan, but he is only investing 6 percent of his income when he could be investing 10 percent. Use what they told you along with the information below to help them prepare for a prosperous retirement.

3. Given their projected Social Security and investment​ income, how much will Bill and Molly need to invest annually to make up their income​ shortfall? What is the annual additional funding requirement to reach their income goal? ​(Round to the nearest​ dollar.)

What are the main features of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010?

Explain the three methods of fraud (Financial Statement Fraud, Occupational Fraud, Collusion), which means analyze each one and provide an example for each.

***Please make it short and simple.

Five brands are competing in the market.

• Company A has 35,000 units sold at $5.00/unit. It sold to 7,000 households in market size of 84,000.
• Company B has 12,000 units sold and revenues of $54,000 for these units. It sold to 3,000 households in market size of 21,000.
• Company C has 14,000 units sold at $5.50/unit. The average household purchase was 2 units. Its market size of 105,000.
• Company D has 5,000 units sold at $6.00/unit. It sold to 833 households in market size of 5,000.
• Company E has 22,000 units sold and revenues of $126,500 for these units. It sold to 5,500 households in market size of 22,000.

What is the "three firm" concentration revenue ratio value?

P made a 75% investment of Ksh.20 million in H on 31.12.2006 when the net assets of H were Ksh.24 million (issued capital Ksh.12 million plus retained earnings Ksh.12 million). On 31.12.2007, H made a 60% investment of Ksh.10 million in S when the net assets of S were Ksh.15 million (issued capital Ksh.10 million plus retained earnings Ksh.5 million).None of the entities has issued new shares since 31.12.2006. There has been no impairment of goodwill since the acquisitions. The group policy is to value non-controlling interest at the proportionate share of net assets of the subsidiary. The summarised statement of financial position at 31.12.2008 and income statement of the three entities are shown below:

Statement of financial position

Required:

Prepare consolidated statement of financial position of the P group as at 31:12:2008 and the income statement for the year ended 31.12.2008.

Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.

Match each of the following formulas and phrases with the term it describes.

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:

Direct materials: 7 microns per toy at $0.30 per micron

Direct labor: 1.3 hours per toy at $6.80 per hour

During July, the company produced 4,900 Maze toys. The toy's production data for the month are as follows:

Direct materials: 76,000 microns were purchased at a cost of $0.29 per micron. 33,125 of these microns were still in inventory at the end of the month.

Direct labor: 6,870 direct labor-hours were worked at a cost of $50,838.

Required:

1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.)

a. The materials price and quantity variances.

b. The labor rate and efficiency variances.