Craftsman manufactures customized household furnishings. The company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost.

Craftsman predetermined overhead application rate for 2012 was computed from the following data:

Total estimated factory overhead $480,000

Total estimated direct labour cost $800,000

The following events occurred during May 2012.

i) Purchased materials on account, $405,000

ii) Incurred manufacturing wages of $111,600

iii) Requisitioned direct materials and used direct labour in manufacturing

Direct Materials Direct Labour

$ $

Job 101 41,320 56,800

Job 102 62,100 66,000

Job 103 14,800 28,700

Job 104 19,200 21,000

iv) Issued indirect materials to production, $6,600

v) Charged indirect manufacturing wages to production, $27,900

vi) Other manufacturing overhead costs incurred on units 101 to 104 amounted to $29,800

vii) Allocated overheads to jobs at the predetermined rate

viii) Units completed: 101, 103 & 104

ix) Sold units 101 & 104 (billed customers at a mark-up of 45% on cost)

Required:

(a) Compute Craftsman’s predetermined manufacturing overhead rate for 2012.

b) State the journal entries necessary to record the above transactions in the general journal.

(c) Calculate the manufacturing overhead variance for Craftsman and state the journal entries necessary to dispose of the variance.

(d) What is balance on the Cost of Goods Sold account after the adjustment

(e) Open T-accounts for Work in Process Inventory and Finished Goods Inventory. Post the appropriate entries to these accounts, identifying each entry by number. Determine the ending balances, assuming that the beginning balances were zero.

You’ve developed fifteen different new furniture ideas for the home furnishings company you work for. The _________ stage will help identify the ideas which are unfeasible due to lack of obvious customer need for the furniture, expensive manufacturing costs, or low rate of return.

Select one:

business analysis

test marketing

idea screening

idea generation

concept testing

SunDay Holidays paid a fee to Google to display a link of their website when a user enters a keyword related to holidays or vacations. The link is displayed on the right side of the search results page. What is this link an example of?

Select one:

organic search

sponsored link

natural search page

home page

Jean is head of marketing at FutureTech. In which stage of the product life-cycle for FutureTech’s new smartphone should she plan for large promotional expenditures in order to create consumer awareness?

Select one:

Adoption

Product development

Growth

Maturity

Introduction

REGRESSION AND INVENTORIES

Jasper Furnishings has $250 million in sales. The company expects that its sales will increase 11% this year. Jasper's CFO uses a simple linear regression to forecast the company's inventory level for a given level of projected sales. On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is as follows:

Inventories = $40 + 0.26(Sales)

1. Given the estimated sales forecast and the estimated relationship between inventories and sales, what are your forecasts of the company's year-end inventory level? Enter your answer in millions. For example, an answer of $25,000,000 should be entered as 25. Round your answer to two decimal places.
   $ million
2. 
   
3. What are your forecasts of the company's year-end inventory turnover ratio? Round your answer to two decimal places.

A rectangular swimming pool is to be built with an area of 1800 square feet. The owner wants 5-foot-wide decks on either side and 10-foot-wide decks at the two ends. Find the area (in sq. feet) of the smallest piece of property on which the pool can be built satisfying these conditions.

          Given: xy=1800

he coal mining industry has been hard-hit by environmental regulations. Recently, however, a combination of increased demand for coal and new pollution reduction technologies has led to an improved market demand for coal. WHC has just been approached by Mid-Cen Electric Company with a request to supply coal for its electric generators for the next eight years. WHC does not have enough excess capacity at its existing mines to guarantee the contract. The company is considering opening a strip mine in The Gunnedah Basin on 5,000 acres of land purchased 10 years ago for $12 million. Based on a recent appraisal, the company feels it could receive $15.5 million if it sold the land today. Strip mining is a process where the layers of topsoil above a coal vein are removed and the exposed coal is removed. Some time ago, the company would simply remove the coal and leave the land in an unusable condition. Changes in mining regulations now force a company to reclaim the land; that is, when the mining is completed, the land must be restored to near its original condition. The land can then be used for other purposes. Because it is currently operating at full capacity, WHC will need to purchase additional necessary equipment, which will cost $77 million. To get the equipment in running order, there would be a $2 million shipping fee and a $3 million installation charge. The equipment will be depreciated to zero on a straight-line basis over its economic life of 15 years. The contract runs for only eight years. At that time the coal from the site will be entirely mined. The company feels that the equipment can be sold for 10 percent of its initial purchase price in eight years. However, WHC plans to open another strip mine at that time and will use the equipment at the new mine. The equipment also requires staff to be specially trained; fortunately, a similar equipment was purchased a year ago, and at that time the staff went through the $500,000 training program needed to familiarise themselves with the type of equipment. WHC’s Corporate Finance (BAFI1059) S2 2020 Page 3 of 9 management is uncertain whether to charge half of this $500,000 training fee to the new project. The equipment also requires annual maintenance cost of $325,000. The contract calls for the delivery of 500,000 tons of coal per year at a price of $93 per ton. WHC feels that coal production will be 620,000 tons, 680,000 tons, and 730,000 tons, respectively, over the first three years, and 590,000 tons per year over the remaining years. The excess production will be sold in the spot market at an average of $75 per ton in Year 1 with an expected decrease of 2% per annum in the following years. Variable costs amount to $35 per ton in Year 1 with an expected increase of 5% per annum in the following years. Fixed costs are $5,000,000 per year. The mine will require a net working capital investment of 5 percent of sales. The net working capital will be built up in the year prior to the sales. WHC will be responsible for reclaiming the land at termination of the mining. The company uses an outside company for reclamation of all the company's strip mines. It is estimated the cost of reclamation will be $2.5 million. In order to get the necessary permits for the strip mine, the company agreed to donate the land after reclamation to the state for use as a public park and recreation area. This will occur in Year 9 and result in a charitable expense deduction of $15.5 million. Company tax rate is 30% and market return is 8.35%

Find the NPV and whether it should open the mine ? show all working out

A 335-room hotel property recorded in 2004 a 66.6% occupancy and an ADR of $117.98. What is the property’s franchise fee (1) on a per available room basis and (2) as a percentage of rooms revenue if the agreement required the hotel to pay a reservation fee of $7.65 per available room per month; a royalty fee of 5% of rooms revenue; an advertising fee of 2.3% of rooms revenue; and a frequent traveler program fee of $5.00 per occupied room. The hotel had frequent stay guests totaling 6% of the occupied rooms. The initial fee is a minimum of $45,000 plus $300 per room for each room over 150.

1. Please use the information from Question 1 to calculate the Total franchise fee.

              Total franchise fee (round to a whole number) $ ___

2. Please use the information from Question 1 to calculate the Franchise fee on PAR basis.

             Franchise fee on PAR basis (round to two decimal places) $___ PAR/yea

3.Please use the information from Question 1 to calculate the Franchise fee as a % of revenue.

             Franchise fee as a % of revenue (round to two decimal places) ___%

1) COVID 19 has made a significant impact on the provision of hospitality guest service. As a hospitality manager who is forced to adapt to the new social constructs, how can you sustain the quality of hospitality guest service to minimize physical contact? Justify your answer.
2). Reflecting on the nature or the characteristics of service, what do you think are its implications to the hospitality organizations in creating a total guest experience?
3) The service industry holds to the general notion that “the guest is always right.” However, in situations where the guest wants too much or goes too far, as rule of thumb, the hospitality manager must be able to find ways to let them know that they are wrong with dignity ensuring that in the process their self- esteem as well as their satisfaction with the guest experience and the organization are not negatively affected. So, how would you handle the given situation? A long-time guest has drunk a bit too much in your hotel bar. He is staying at the hotel that evening, he is not driving, and he insists on one more drink. He says that if the hotel refuses to serve him, he will take his business elsewhere.

The New Hotel Of Marseille has 2 different meeting rooms named Honorine and Zoe. In Honorine, there is a meeting for a pharmaceutical company while in Zoe there is a meeting for an insurance company. The reception team was well informed about the pharmaceutical meeting but not the insurance’s, every time a person asks the reception for the meeting location, they were immediately sent to Honorine. Two of the participants came back to the front desk and they were very upset about being sent to the wrong place, when asking about why they were not sent to the correct meeting, the receptionist politely replied and informed them that based on the information he had, there is only one meeting at the hotel today, but the guests insisted that their company organized a meeting at the hotel, so the reception showed his understanding and apologized about the misunderstanding and immediately called the sales department who confirmed that there are two different meetings.

Questions: Question 1: What is the reason behind this situation? Why? (35 pts.)

Question 2: Who is responsible for avoiding such misunderstandings in the future? How? (35 pts.)

Question 3: How would you evaluate the service delivered by the front office team? (30 pts.)

Glitz hotel is going to make a $2,000,000 investment by completing renovating a floor of the hotel. The floorplan will be entirely redone, and they can have a mix of three types of rooms: Luxury Suites, Large rooms, or Regular rooms. Due the size of the floor, they can build a maximum of 20 luxury suites or a maximum of 40 large rooms or a maximum of 60 regular rooms or a mix of all three.

Luxury suites will rent for $400 per night.

Lrrge rooms will rent for $200 per night.

Regular rooms will rent for $135 per night.

The cost to maintain each room, excluding depreciation, is $30/night ($25 in variable maintenance and $5 in fixed booking costs).

The food and beverage manager noted that since the suites are often used for conventions as private hospitality suites, they purchase an average of $200 per night in room service. Large rooms purchase an average of $40 and Regular $10 per night for room service. Room service generates a 70% gross profit. The cleaning manager noted that the suites generally require an extra $10/night in cleaning costs due to these conventions.

Estimated maximum demand per night is as follows:

Suites:10 rooms

Large: 25 rooms

Regular: no maximum demand

How many of each room should they build as part of the renovation?