|
Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to an activity-based costing system and prepared the following cost estimates for year 2 for the recommended cost drivers. |
| Activity |
Recommended Cost Driver |
Estimated Cost |
Estimated Cost Driver Activity |
|||
| Processing orders | Number of orders | $ | 52,875 | 225 | orders | |
| Setting up production | Number of production runs | 144,000 | 80 | runs | ||
| Handling materials | Pounds of materials used | 280,000 | 100,000 | pounds | ||
| Machine depreciation and maintenance | Machine-hours | 240,000 | 12,000 | hours | ||
| Performing quality control | Number of inspections | 55,600 | 40 | inspections | ||
| Packing | Number of units | 138,000 | 460,000 | units | ||
| Total estimated cost | $ | 910,475 | ||||
| In addition, management estimated 7,800 direct labor-hours for year 2. |
| Assume that the following cost driver volumes occurred in January year 2: |
| Institutional | Standard | Silver | |||||||
| Number of units produced | 57,000 | 27,000 | 8,000 | ||||||
| Direct materials costs | $ | 43,000 | $ | 23,000 | $ | 15,000 | |||
| Direct labor-hours | 480 | 420 | 560 | ||||||
| Number of orders | 13 | 10 | 6 | ||||||
| Number of production runs | 2 | 2 | 7 | ||||||
| Pounds of material | 16,000 | 5,000 | 3,000 | ||||||
| Machine-hours | 580 | 140 | 70 | ||||||
| Number of inspections | 3 | 3 | 3 | ||||||
| Units shipped | 57,000 | 27,000 | 8,000 | ||||||
| Actual labor costs were $14 per hour. |
| Required: |
| (a) | (1) |
Compute a predetermined overhead rate for year 2 for each cost driver using the estimated costs and estimated cost driver units prepared by the consultant. (Round your answers to 2 decimal places.) |
| (2) |
Compute a predetermined rate for year 2 using direct labor-hours as the allocation base. (Round your answer to 2 decimal places.) |
| (b) |
Compute the production costs for each product for January using direct labor-hours as the allocation base and the predetermined rate computed in requirement (a)(2). (Round "Indirect costs" to the nearest dollar.) |
| (c) |
Compute the production costs for each product for January using the cost drivers recommended by the consultant and the predetermined rates computed in requirement ( a ). ( Note: Do not assume that total overhead applied to products in January will be the same for activity-based costing as it was for the labor-hour-based allocation.) |
In: Accounting
Heart rates for newborns born in one of two hospitals were measured to determine whether birth outcomes are comparable at the two locations. Assume the hospitals are independent.
|
Relationship between heart rate and hospital |
|||
|
Hospital |
Mean heart rate (bpm) |
SD |
n |
|
Riverside Methodist |
127 |
11 |
216 |
|
NRV General |
133 |
12 |
153 |
a) Test for a significant difference between mean heart rate in the two hospitals. Remember, as always, to give hypotheses, a p-value, and any other necessary information. Choose an appropriate p-value.
We compare the length of stay in days from several randomly selected patients:
|
Length of stay comparison |
|
|
Hospital |
Length of stays (days) |
|
Riverside Methodist |
21, 10, 32, 60, 7, 44, 27, 3, 16, 26, 33 |
|
NRV General |
86, 27, 9, 70, 88, 75, 120, 60, 35, 73, 96, 44, 240 |
a) Why is a t-test inappropriate in this case?
b) Conduct an appropriate nonparametric test to determine whether the two hospitals are com- parable in length of stay. Report a conclusion and necessary work.
In: Statistics and Probability
|
Salt (teaspoons) |
||||
|
Burner |
0 |
2 |
4 |
6 |
|
Right Back |
7(7) |
4(13) |
7(24) |
5(15) |
|
8(21) |
7(25) |
7(34) |
7(33) |
|
|
7(30) |
7(26) |
7(41) |
7(37) |
|
|
Right Front |
4(6) |
4(36) |
4(1) |
4(28) |
|
4(20) |
5(44) |
4(14) |
4(31) |
|
|
4(27) |
4(45) |
5(18) |
4(38) |
|
|
Left Back |
6(9) |
6(46) |
7(8) |
5(35) |
|
7(16) |
6(47) |
6(12) |
6(39) |
|
|
6(22) |
5(48) |
7(43) |
6(40) |
|
|
Left Front |
9(29) |
8(5) |
8(3) |
8(2) |
|
9(32) |
8(10) |
9(19) |
8(4) |
|
|
9(42) |
8(11) |
10(23) |
7(17) |
|
In: Math
1.
The followings are the performance measures generated from multiple runs of the k-Means model on the same dataset with different configurations. Which one presents the best k-Means model.
Select one:
a. SSE: 303; Davies-Bouldin index: 0.29
b. SSE: 706: Davies-Bouldin index: 0.85
c. SSE: 866; Davies-Bouldin index: 0.87
2.
You have to specify which of the following parameters before the run of the DBSCAN algorithm.
Select one:
a. epsilon
b. epsilon and MinPoints
c. Number of clusters (k)
d. MinPoints
In: Computer Science
Blake & McKenzie Tax Services is a company serving 72 clients (as of the beginning of last month) that is working on reorganizing its balanced scorecard. Currently, the company has the following performance metrics: online client satisfaction rating, client growth percentage (the number of total clients at the beginning of the current month compared to the number of total clients at the beginning of the prior month), market share, and profit margin. The company tracks these metrics from month to month. The company’s target client growth percentage is 4% per month. Its target average online client satisfaction rating is 4.8 stars. Last month, the company noted the following data related to these metrics:
New clients 7
Lost clients 4
Market share 1.52%
Profit margin 65%
Working together in teams, create strategic objectives that each of
the company’s four performance metrics might represent.
Determine whether the company achieved its client growth percentage target last month.
Suppose that last month, the company received 55 five-star reviews, 10 four-star reviews, 3 three-star reviews, 1 two-star review, and 1 one-star review (some clients did not submit a review). Determine whether the company met its average online client satisfaction rating target.
Come up with at least one strategic initiative for the strategic objective of any performance metric target that you know the company did not meet last month.
In: Accounting
Please provide an elaborate answer explaining every single step
The price of a stock is $40. The price of a one-year put with strike price $30 is $0.70 and a call with the same time to maturity and a strike of $50 costs $0.50. Both options are European.
(a) An investor buys one share, shorts one call and buys one put. Draw and comment upon the payoff of this portfolio at maturity as a function of the underlying price.
(b) How would your answer to (a) change if the investor buys one share, shorts two calls and buys two puts instead.
In: Finance
Ramsey Company produces speakers (Model A and Model B). Ramsey’s controller, Mr. Jacks, is evaluating the different methods of allocating manufacturing overhead to the products. Both products pass through two producing departments. Model A’s production is much more labor-intensive than that of Model B. Model B is also more popular of the two speakers. The following data have been gathered for the two products.
|
Product Data |
||||
|
Model A |
Model B |
|||
|
Units produced & sold per year |
20,000 |
200,000 |
||
|
Sales Revenue |
$600,000.00 |
$6,000,000.00 |
||
|
Prime cost |
$100,000.00 |
$1,000,000.00 |
||
|
Direct Labor Hours |
140,000 |
300,000 |
||
|
Machine hours |
20,000 |
180,000 |
||
|
Set Ups |
40 |
160 |
||
|
Inspection runs |
600 |
1,400 |
||
|
Packing Orders |
9,000 |
81,000 |
||
|
Estimated Manufacturing Overhead: |
||||
|
Machining costs |
$160,000.00 |
|||
|
Setup costs |
$180,000.00 |
|||
|
Inspection costs |
$140,000.00 |
|||
|
Packing costs |
$180,000.00 |
|||
|
Total Manufacturing Overhead |
$660,000.00 |
|||
Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Department 1 (machine intensive) with an MOH rate of $2.75 per machine hour and Department 2 (labor intensive) with an MOH rate of $1.25 per direct labor hour. The actual consumption of these two drivers is as follows:
|
Department 1 |
Department 2 |
|
|
Machine Hours |
Direct Labor Hours |
|
|
Model A |
55,000 | 110,000 |
|
Model B |
145,000 | 330,000 |
Compare the results for the simple cost allocation system (plant-wide), departmental cost allocation and the ABC cost allocation systems. Which do you think is more accurate and why? What circumstances would favor Ramsey adopting ABC as their allocation method (provide at least three reasons)?
In: Accounting
Monitor the price of a stock over a five-week period. Note the amount of gain or loss per day. Test the claim that the median is 0. Perform a runs test to see if the distribution of gains and losses is random.
In: Statistics and Probability
A machine in a factory has an error rate of 10 parts per 100. The machine normally runs 24 hours a day and produces 30 parts per hour. Yesterday the machine was shut down for 4
In: Advanced Math
Implement the Fibonacci function by means of accumulative parameters so that it runs in linear time.
(Please use OCaml, Haskell or another functional language and delineate which you are using. Python won't work, unfortunately.)
In: Computer Science