1)  Explain the primary benefits of a business education?

2) Why is pursuing an MBA immediately after finishing an undergraduate degree generally a bad idea?

3) briefly describe the various alternatives to a formal business education.?

4) Explain the difference between “training” and “education”. Then explain the role of each in higher education (and specifically in business school)?

5)  What does a business degree signal to an employer?

6) Briefly describe the various formats for a business degree?

1.

A corporation issues a $900,000, 10%, 25-year mortgage note. The terms provide for annual installment payments of $99,151. What is the remaining unpaid principal balance of the mortgage payable account after the second annual payment?

Group of answer choices

$889,689

$890,849

$887,689

$880,782

$889,374

Suppose the depreciation rate of capital decreased at time t* permanently. How would this affect real wage rate, real rental rate, real interest rate and price level in long run and very-long run in a closed market economy?

A: The Bustillo Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable manufacturing overhead is $4 per direct labor-hour; the budgeted fixed manufacturing overhead is $84,000 per month, of which $15,900 is factory depreciation. If the budgeted direct labor time for November is 7,900 hours, then the total budgeted manufacturing overhead for November is? $115,600 / $99,700 / $131,500 / $84,000

B: Bustillo Inc. cost formula for its vehicle operating cost is $2,920 per month plus $322 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $8,350. The spending variance for vehicle operating cost in December would be closest to? $278 U / $278 F / $922 U / $922 F

C: Bustillo Inc. uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $56,760 per month plus $2,626 per flight plus $9 per passenger. The company expected its activity in February to be 63 flights and 262 passengers, but the actual activity was 62 flights and 263 passengers. The actual cost for plane operating costs in February was $220,700. The plane operating costs in the planning budget for February would be closest to? $224,556 / $223,326 / $221,939 / $220,700

C2: A total of 6,850 kilograms of a raw material was purchased at a total cost of $21,920. The materials price variance was $1,370 favorable. The standard price per kilogram for the raw material must be? $0.20 / $3.00 / $3.20 / $3.40

D: Bustillo Corporation makes a product with the following standard costs:

In January the company produced 3,320 units using 13,280 pounds of the direct material and 2,776 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $14,040. The actual direct labor cost was $57,895 and the actual variable overhead cost was $25,260. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The labor rate variance for January is? $401 F / $401 U / $2,119 U / $2,119 F

E: Last year, Bustillo's division had total sales of $13,420,000, net operating income of $1,261,480, and average operating assets of $2,684,000. The company's minimum required rate of return is 15%. The division's margin is closest to? 9.4% / 47.0% / 62.7% / 20.0%

Part 1

Department Direct Expenses Square Feet Sales Advertising $ 20,000 1,680 Administrative 30,000 1,260 Shoes 128,000 10,290 $ 179,800 Clothing 19,000 7,770 130,200 The advertising department developed and distributed 130 advertisements during the year. Of these, 26 promoted shoes and 104 promoted clothing. Utilities expense of $75,000 is an indirect expense to all departments. Complete a departmental expense allocation spreadsheet for Coconut Shop. The spreadsheet should assign (1) direct expenses to each of the four departments, (2) the $75,000 of utilities expense to the four departments on the basis of floor space occupied, (3) the advertising department’s expenses to the two operating departments on the basis of the number of ads placed that promoted a department’s products, and (4) the administrative department’s expenses to the two operating departments based on the amount of sales.

PA4-2 Assigning Costs Using Traditional System, Assigning Costs Using Activity Proportions [LO 4-1, 4-3, 4-5, 4-6]

Carlise Corp., which manufactures ceiling fans, currently has two product lines, the Indoor and the Outdoor. Carlise has total overhead of $133,810.

Carlise has identified the following information about its overhead activity cost pools and the two product lines:

Required:
1. Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)



2. Calculate the activity proportions for each cost pool in Carlise's ABC system. (Round your answers to 2 decimal places.)

  

3. Calculate the amount of overhead that Carlise will assign to the Indoor line if it uses an ABC system. (Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.)



4. Determine the amount of overhead Carlise will assign to the Outdoor line if it uses an ABC system. (Round your intermediate calculations to 2 decimal places and round your final answers to the nearest whole dollar amount.)

  

5. Compare the results for a traditional system with an ABC system. Which do you think is more accurate?

Rocky Mountain Corporation makes two types of hiking boots—Xactive and Pathbreaker. Data concerning these two product lines appear below:

The company has a conventional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Required:

1-a. Compute the predetermined overhead rate based on direct labor-hours.

1-b. Using the predetermined overhead rate and other data from the problem, determine the unit product cost of each product.

2. The company is considering replacing its conventional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools:

Determine the activity rate for each of the four activity cost pools.

3. Using the activity rates and other data from the problem, determine the unit product cost of each product.

For each audit activity, identify the PCAOB assertion that matches with the activity. Each activity has one answer, but the assertions are used more than once.

You receive an annuity immediate for 20 years, where for the first 10 years, payments are 1000 and then starting at the end of the 11th year increase by 10% (so the payment at the end of the 11th year is 1100. Find the accumulated value of the annuity if effective annual interest i = 7%.

28. Which of the following groups would be considered internal users of a company’s income statement?

After all the closing entries have been posted, the balance of the Income Summary account will be

30. Balance sheet can answer the following questions except

35. Which one of the followings is not an example of operating expense in income statement?

Multiple step income statement can answer following questions except:

Exercise 22-20

The before-tax income for Tamarisk Co. for 2017 was $98,000 and $80,300 for 2018. However, the accountant noted that the following errors had been made:

Prepare a schedule showing the determination of corrected income before taxes for 2017 and 2018.

Optimus Company manufactures a variety of tools and industrial equipment. The company operates through three divisions. Each division is an investment center. Operating data for the Home Division for the year ended December 31, 2020, and relevant budget data are as follows.

Actual

Comparison with Budget

Sales$1,400,000$100,000 favorable

Variable cost of goods sold665,00045,000 unfavorable

Variable selling and administrative expenses125,00025,000 unfavorable

Controllable fixed cost of goods sold170,000On target

Controllable fixed selling and administrative expenses80,000On target

Average operating assets for the year for the Home Division were $2,000,000 which was also the budgeted amount.

Prepare a responsibility report for the Home Division. (List variable costs before fixed costs. Round ROI to 2 decimal places, e.g. 1.57%.)

OPTIMUS COMPANY
Home Division
Responsibility Report
For the Year Ended December 31, 2020

Difference

Budget

Actual

Favorable
Unfavorable
Neither Favorable
nor Unfavorable

Gross ProfitControllable Direct Fixed CostsTotal Variable CostsVariable CostsContribution MarginControllable MarginTotal Controllable Direct Fixed CostsSalesCost of Goods SoldSelling and Administrative

$ $ $

FavorableUnfavorableNeither Favorable nor Unfavorable

SalesContribution MarginControllable Direct Fixed CostsSelling and AdministrativeControllable MarginCost of Goods SoldGross ProfitTotal Controllable Direct Fixed CostsTotal Variable CostsVariable Costs

    Variable Costs    Controllable Margin    Contribution Margin    Selling and Administrative    Controllable Direct Fixed Costs    Cost of Goods Sold    Gross Profit    Sales    Total Controllable Direct Fixed Costs    Total Variable Costs    

FavorableUnfavorableNeither Favorable nor Unfavorable

    Contribution Margin    Total Controllable Direct Fixed Costs    Controllable Direct Fixed Costs    Selling and Administrative    Total Variable Costs    Variable Costs    Controllable Margin    Cost of Goods Sold    Gross Profit    Sales    

FavorableUnfavorableNeither Favorable nor Unfavorable

    Variable Costs    Selling and Administrative    Cost of Goods Sold    Total Controllable Direct Fixed Costs    Controllable Direct Fixed Costs    Total Variable Costs    Sales    Contribution Margin    Gross Profit    Controllable Margin    

FavorableUnfavorableNeither Favorable nor Unfavorable

SalesSelling and AdministrativeContribution MarginGross ProfitTotal Controllable Direct Fixed CostsVariable CostsTotal Variable CostsControllable Direct Fixed CostsControllable MarginCost of Goods Sold

FavorableUnfavorableNeither Favorable nor Unfavorable

Total Variable CostsControllable MarginVariable CostsContribution MarginCost of Goods SoldGross ProfitControllable Direct Fixed CostsTotal Controllable Direct Fixed CostsSalesSelling and Administrative

    Contribution Margin    Sales    Selling and Administrative    Variable Costs    Cost of Goods Sold    Total Controllable Direct Fixed Costs    Controllable Direct Fixed Costs    Controllable Margin    Total Variable Costs    Gross Profit    

FavorableUnfavorableNeither Favorable nor Unfavorable

    Controllable Margin    Total Variable Costs    Sales    Total Controllable Direct Fixed Costs    Cost of Goods Sold    Variable Costs    Contribution Margin    Controllable Direct Fixed Costs    Selling and Administrative    Gross Profit    

FavorableUnfavorableNeither Favorable nor Unfavorable

    Total Controllable Direct Fixed Costs    Controllable Margin    Cost of Goods Sold    Variable Costs    Selling and Administrative    Gross Profit    Total Variable Costs    Contribution Margin    Controllable Direct Fixed Costs    Sales    

FavorableUnfavorableNeither Favorable nor Unfavorable

Controllable Direct Fixed CostsControllable MarginCost of Goods SoldGross ProfitSalesSelling and AdministrativeTotal Controllable Direct Fixed CostsTotal Variable CostsVariable CostsContribution Margin

$ $ $

FavorableUnfavorableNeither Favorable nor Unfavorable

ROI % % %

FavorableUnfavorableNeither Favorable nor Unfavorable

Compute the expected ROI in 2020 for the Home Division, assuming the following independent changes to actual data. (Round ROI to 2 decimal places, e.g. 1.57%.)

The expected ROI

(1)Variable cost of goods sold is decreased by 5%. %

(2)Average operating assets are decreased by 10%. %

(3)Sales are increased by $200,000, and this increase is expected to increase contribution margin by $80,000. %

For each audit activity, identify the audit procedure. Each activity has one answer, but the audit procedures can be used more than once.

__ Review lease agreements for capital leases.

__ Select a sample of inventory items from the receiving reports and follow the items to inventory records.

__ Select a sample of fixed asset additions and ask to see the assets.

__ Review the client's calculation of the allowance for doubtful accounts.

__ Compare sales invoice quantities to shipment documentation quantities to verify the client's assertion that this procedure is done by client personnel.

__ Select a sample of entries in the payroll journal and match the employee name, date of payment, and amount of pay to the employee personnel file.

__ Ask production and sales personnel concerning possible obsolete or slow-moving inventory.

__ Watch that an independent person double-checks the payroll wage rates and calculations before checks are printed.

__ Calculate the percentage of sales for salary and wages expense for this year and the prior year for reasonable presentation.

__ Send a form to the bank for the balances of the payroll checking accounts.

Answer Bank

Wingding Ltd. reports the following information:

Net income: $720,000

Depreciation expense: $210,000

Increase in accounts receivable: $90,000

Wingding should report cash provided by operating activities of:

Question 10 options: