The standards for one case of liquid weed killer are as follows: Direct materials 7 lb @ $ 9 /lb Direct labor 4.3 hr @ $ 19.2 /hr Variable overhead (based on machine hours) 1.4 hr @ $ 6.6 /hr During the week ended May 6, the following activity took place: 5,559 machine hours were worked. 29,553 lb of raw material were purchased for inventory at a total cost of $271,297. 4,180 cases of finished product were produced. 29,110 lb of raw material were used. 17,579 labor hours were worked at an average rate of $19.5 per hour. $35,411 actual variable overhead costs were incurred. Required: Calculate each of the following variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

a. price variance for raw materials purchased

b raw materials usage variance

c. direct labor rate variance

d. direct labor efficiency variance

e. variable overhead spending variance

f. variable overhead efficiency variance

**Please show work or explain**

1.) What are the differential revenues associated with the special order?Jake Company is considering a special order for 5,000 units at a price of $60 per unit. Jake's product normally sells for $84 per unit and has variable manufacturing costs of $45 per unit and variable selling costs of $9 per unit. Fixed manufacturing costs are $150,000 and fixed selling and administrative costs are $300,000. Jake has capacity to produce 30,000 units and is currently producing 20,000 units. If the order is accepted, , Jake will incur legal fees of $7,500 in connection with the order, but there will be no variable selling costs on the special order. What are the differential revenues associated with the special order?

a. $75,000

b. $120,000

c. $420,000

d. $300,000

e. None of these

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2.) What are the differential revenues associated with the special order?Jake Company is considering a special order for 5,000 units at a price of $60 per unit. Jake's product normally sells for $84 per unit and has variable manufacturing costs of $45 per unit and variable selling costs of $9 per unit. Fixed manufacturing costs are $150,000 and fixed selling and administrative costs are $300,000. Jake has capacity to produce 30,000 units and is currently producing 20,000 units. If the order is accepted, , Jake will incur legal fees of $7,500 in connection with the order, but there will be no variable selling costs on the special order. What are the differential costs associated with the special order?

a. $232,500

b. $67,500

c. $127,500

d. $322,500

e. None of these

Do you think this makes an impact on investors if a company is highly valued by their employees?

Why do you think that some companies do not invest in valuing their employees?

What keeps Google at the top of the list?

Lionel Corporation manufactures pharmaceutical products sold through a network of sales agents in the United States and Canada. The agents are currently paid an 18% commission on sales; that percentage was used when Lionel prepared the following budgeted income statement for the fiscal year ending June 30, 2019

Since the completion of the income statement, Lionel has learned that its sales agents are requiring a 5% increase in their commission rate (to 23%) for the upcoming year. As a result, Lionel’s president has decided to investigate the possibility of hiring its own sales staff in place of the network of sales agents and has asked Alan Chen, Lionel’s controller, to gather information on the costs associated with this change.

Alan estimates that Lionel must hire eight salespeople to cover the current market area, at an average annual payroll cost for each employee of $80,000, including fringe benefits expense. Travel and entertainment expenses is expected to total $650,000 for the year, and the annual cost of hiring a sales manager and sales secretary will be $175,000. In addition to their salaries, the eight salespeople will each earn commissions at the rate of 10% of sales. The president believes that Lionel also should increase its advertising budget by $550,000 if the eight salespeople are hired.

Required

1. Determine Lionel’s breakeven point (operating profit = 0) in sales dollars for the fiscal year ending June 30, 2019, if the company hires its own sales force and increases its advertising costs. Prove this by constructing a contribution income statement.

2. If Lionel continues to sell through its network of sales agents and pays the higher commission rate, determine the estimated volume in sales dollars that would be required to generate the operating profit as projected in the budgeted income statement.

REQUIREMENT 1

Determine Lionel’s breakeven point (operating profit = 0) in sales dollars for the fiscal year ending June 30, 2019, if the company hires its own sales force and increases its advertising costs. Prove this by constructing a contribution income statement. (Do not round intermediate calculations. Enter your answers in thousands of dollars.)

• Required 2

If Lionel continues to sell through its network of sales agents and pays the higher commission rate, determine the estimated volume in sales dollars that would be required to generate the operating profit as projected in the budgeted income statement. (Do not round intermediate calculations. Enter your answers in thousands of dollars.)

Department S had no work in process at the beginning of the period. It added 11,600 units of direct materials during the period at a cost of $81,200. During the period, 8,700 units were completed, and 2,900 units were 20% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $50,112, and factory overhead was $27,840. The total cost of units completed during the period was a. $107,880 b. $160,776 c. $133,980 d. $60,900

Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow:

Additional information about the company follows:

1. Hubs require $30 in direct materials per unit, and Sprockets require $16.

2. The direct labor wage rate is $11 per hour.

3. Hubs require special equipment and are more complex to manufacture than Sprockets.

4. The ABC system has the following activity cost pools:

Required:

1. Compute the activity rate for each activity cost pool.

2. Determine the unit product cost of each product according to the ABC system.

Your supervisor has just finished taking a college course in which she learned about flowcharting and data-flow diagrams.

In the data-flow diagrams, there are four basic symbols that are used. Prepare a written paper describing and discussing these symbols, including the following:

• Why these symbols are important
• How they can help accounting information systems to be better understood

Walters Audio Visual Inc. offers an incentive stock option plan to its regional managers. On January 1, 2021, options were granted for 40 million $1 par common shares. The exercise price is the market price on the grant date—$8 per share. Options cannot be exercised prior to January 1, 2023, and expire December 31, 2027. The fair value of the 40 million options, estimated by an appropriate option pricing model, is $1 per option.

Required: 1. Determine the total compensation cost pertaining to the incentive stock option plan.

2. to 5. Prepare the appropriate journal entries to record compensation expense on December 31, 2021 and 2022. Prepare the appropriate journal entry to record the exercise of 75% of the options on March 12, 2023, when the market price is $9 per share and the entry on December 31, 2027, when the remaining options that have vested expire without being exercised.

Activity-Based Costing and Conventional Costs Compared
Chef Grill Company manufactures two types of cooking grills: the Gas Cooker and the Charcoal Smoker. The Cooker is a premium product sold in upscale outdoor shops; the Smoker is sold in major discount stores. Following is information pertaining to the manufacturing costs for the current month.

Manufacturing overhead follows:

Rounding instructions: Do not round until your final answers. Round total cost answers to the nearest dollar and per unit answers to the nearest cent.

(a) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming all manufacturing overhead is assigned on the basis of direct labor dollars.

HINT: Use 8.4708 for overhead rate calculations.

(b) Determine the total and per-unit costs of manufacturing the Gas Cooker and Charcoal Smoker for the month, assuming manufacturing overhead is assigned using activity-based costing.

Which of the following statements is correct?

Select one:

a. An engagement designed to express limited assurance relating to subject matter or an assertion is called an examination.

b. An attest engagement in which the CPAs agree to perform procedures for a specified party and issue a report that is restricted to use by that party is called an agreed-upon procedures engagement.

c. Professional services that can be performed without considering ethics, integrity or independence are called nonassurance services.

d. Professional services that enhance the quality of information, or its context, for decision makers are called nonattest services.

Audits lend credibility to information by reducing ____________, or the risk that the information used to assess business risk is not accurate (or materially misstated)

Select one:

a. information risk

b. operational risk

c. audit risk

d. business risk

Which of the following statements is correct?

Select one:

a. Errors are intentional misstatements or omissions of amounts or disclosures in the financial statements.

b. Professional skepticism refers to an attitude that includes a questioning mind, being alert to conditions that may indicate possible misstatements, and a critical assessment of audit evidence

c. Audits provide absolute assurance of detecting material misstatements and reasonable assurance of detecting immaterial misstatements.

d. When performing an audit, auditors should not trust any documentation provided by the client's management, even if the entity shows strong internal controls.

Factory Overhead Cost Variance Report

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 12,000 hours for production:

Tannin has available 16,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Construct a factory overhead cost variance report for the Trim Department for July. Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.

**THIS IS ALL THE AVAILABLE INFORMATION I HAVE. I DON'T HAVE ANY OTHER INFORMATION**

Sales revenue$745,000Cost of goods sold450,000Selling expenses58,000Administrative expenses72,000Loss on sale of equipment5,000Income tax expense64,000Shares of common stockOutstanding at January 115,000sharesAdditional issued at May 17,000sharesAdditional issued at November 12,000shares

Find earnings per share of common stock

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. John Jamison wants to accumulate $80,170 for a down payment on a small business. He will invest $34,000 today in a bank account paying 10% interest compounded annually. Approximately how long will it take John to reach his goal?
2. The Jasmine Tea Company purchased merchandise from a supplier for $48,016. Payment was a noninterest-bearing note requiring Jasmine to make seven annual payments of $8,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?
3. Sam Robinson borrowed $22,000 from a friend and promised to pay the loan in 12 equal annual installments beginning one year from the date of the loan. Sam’s friend would like to be reimbursed for the time value of money at an 11% annual rate. What is the annual payment Sam must make to pay back his friend?

During the first half of the semester we’ve often discussed the importance and cited examples of “stealth tax” provisions in our US federal tax law. Briefly explain what is meant by a “stealth tax” provision, how it impacts an individual’s US federal income tax liability and cite one (1) example of stealth income tax provisions currently in our US federal tax law.

Required information

E7-6 through E7-10.

[The following information applies to the questions displayed below.]

Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products.

The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children. MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and is investigating several possible ways to improve profitability.

E7-6 (Algo) Analyzing Special-Order Decision [LO 7-2, 7-3]

MSI has been approached by a fourth-grade teacher from Portland about the possibility of creating a specially designed game that would be customized for her classroom and environment. The teacher would like an educational game to correspond to her classroom coverage of the history of the Pacific Northwest, and the state of Oregon in particular. MSI has not sold its products directly to teachers or school systems in the past, but its Marketing Department identified that possibility during a recent meeting.

The teacher has offered to buy 2,300 copies of the CD at a price of $5.00 each. MSI could easily modify one of its existing educational programs about U.S. history to accommodate the request. The modifications would cost approximately $480. A summary of the information related to production of MSI’s current history program follows:

Required:
1. Compute the incremental profit (or loss) from accepting the special order.

2. Should MSI accept the special order?

3. Suppose that the special order had been to purchase 2,300 copies of the program for $1.50 each. Compute the incremental profit (or loss) from accepting the special order under this scenario.

4. Suppose that MSI is operating at full capacity. To accept the special order, it would have to reduce production of the history program. Compute the special order price at which MSI would be indifferent between accepting or rejecting the special order.