Changes in demographic outcomes can occur because of changes in within-group rates and/or changes in composition. First, explain what that sentence means. Then take the example of falling rates of death due to heart disease. How might changes in within-group rates account for that outcome? What about changes in composition? Can you think of any way to sort out the effects of changes in within-group rates vs. changes in composition?

Taxes are compulsory, yet communities often vote to increase taxes on themselves to pay for public goods. Under what circumstances would a voter be better off with more government spending, even with accompanying higher local taxes? Include a discussion of the Pareto efficient exchange in your response.

The selling price per vehicle is $28,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units.There are no price, efeciency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.

Prepare April and May 2017 income statements for Speedy Motors under absorption costing. Complete the top half of the income statement for each month first, then complete the bottom portion.

DATA                      APRIL            MAY

Beginning Inventory      0               100

Production                   500              400

Sales                           400               460

Variable costs:

Manufacturing cost      $8500          $8500

per unit produced

Operating cost/unit sold   3400         3400

Fixed Costs:

Manufacturing Costs      $2000000       2000000

Operating Costs              725,000          725,000

(marketing)

Identify and describe two markets of your choosing; the first characterized by an elastic demand and the second one by an inelastic demand. Indicate why your choices have the relative elasticities they do. In addition to your personal reasons for the purchase, you will need to apply the determinants of elasticity to sort why your choices in Market One are elastic and why the choices in Market Two are inelastic.

Market One: What are some of the goods you purchase in your life for which your demand is most elastic? Why?

Market Two: What are some of the goods you purchase in your life for which your demand is highly inelastic? Why?

Lunar Artistry Company needs to purchase new etching and finishing equipment. The owners hope to finance the costly equipment with cash on hand and a short term loan from Erie Bank. The CFO of Lunar Artistry Company has recently completed the sales forecast. She projects sales to increase by 10% each month over the previous month sales for the first quarter with the remaining months remaining constant.

The controller has been asked to prepare the master monthly budget for the first quarter 2021. In the process, the controller has accumulated the following information:

1. Projected Sales for December 2020 are $500,000. Credit sales are 80% of total sales with immediate cash sales as the other 20%. Of the credit sales, cash is collected 20% in the month of the sale and the remainder in the month following the sale.
2. Lunar’s cost of goods sold is generally 60% of the current month sales. All inventory is purchased on account. 40% of inventory purchases are paid for in the month of purchase with the remaining 60% paid the month following the purchase.
3. The controller has determined additional monthly expenses to be as follows:
   1. Salaries                       $55,000 Paid monthly
   2. Advertising                 $20,000 Paid Monthly
   3. Property Taxes            $ 2,900 Paid Feb 28 and Aug 31
   4. Sales Commissions    1.2% of monthly sales
4. The owners of Lunar Artistry Company have selected etching and finishing equipment costing $175,000. They plan to pay cash for the equipment. If they do not have enough cash, assuming the company can maintain a $25,000 balance, the owners will take a short term loan from Erie Bank. The CFO has stated the current interest rate on short term loans is 6% and she anticipates the need for a six-month loan. Interest on short-term loans is payable monthly.
5. Interest is paid each March 31 and September 30 on the Mortgage Payable. The interest rate on the mortgage is 4%
6. The board of directors intends to declare a $40,000 dividend at the end of the first quarter.

REQUIRED:

1. Using the Excel template, complete the purchase budget, cash disbursement budget and cash budget.

*PLEASE SHOW EXCEL FORMULAS*

Additional Information:

Projected BS Tab from Excel Template:

Sales Budget Tab from Excel Template:

Problem 7-52 Cost Flows through Accounts (LO 7-2, 3, 4)

Brighton Services repairs locomotive engines. It employs 100 full-time workers at $18 per hour. Despite operating at capacity, last year's performance was a great disappointment to the managers. In total, 10 jobs were accepted and completed, incurring the following total costs:

Of the $1,035,000 manufacturing overhead, 40 percent was variable overhead and 60 percent was fixed.

This year, Brighton Services expects to operate at the same activity level as last year, and overhead costs and the wage rate are not expected to change. For the first quarter of this year, Brighton Services completed two jobs and was beginning the third (Job 103). The costs incurred follow:

You are a consultant associated with Lodi Consultants, which Brighton Services has asked for help. Lodi's senior partner has examined Brighton Services's accounts and has decided to divide actual factory overhead by job into fixed and variable portions as follows:

Required:

a. Present in T-accounts the actual manufacturing cost flows for the three jobs in the first quarter of this year.  

A table like this for Materials Inventory, Wages Payable, Variable Manufacturing Overhead, Fixed Manufacturing Overhead, Work In Process Inventory, Finished Good Inventory, Cost of Goods Sold and Under-or Over-Applied Overhead

b. Using last year's overhead costs and direct labor-hours as this year's estimate, calculate predetermined overhead rates per direct labor-hour for variable and fixed overhead. (Round your answers to 2 decimal places.)

c.   Present in T-accounts the normal manufacturing cost flows for the three jobs in the first quarter of this year. Use the overhead rates derived in requirement (b). (Do not round intermediate calculations.) Same T Accounts as above needed.

d. Calculate operating profit (loss) for the first quarter of this year under actual and normal costing systems.

Q3: Problems:

Problem 1

Viola Enterprises is a manufacturer that produces violins for established professional musicians. Ed Johnson, the company’s sales manager, prepared the following sales forecast for 2011:

The sales price of violins is expected to increase by 6% per quarter to cover expected increases in raw material costs.

Required

Prepare Viola’s sales budget for 2011 for violins.

Problem 2

Viola Enterprises is a manufacturer that produces violins for amateur, rising, and established professional musicians. Ed Johnson, the company’s sales manager, prepared the following sales forecast for violins for the four quarters of 2011 and the first quarter of 2012:

On December 31, 2010, Viola had 80 violins in stock–fewer than the desired inventory level of 20% of the next quarter’s sales.

Required

Prepare Viola’s production budget for violins for 2011.

Problem 3

Viola Enterprises is a manufacturer that produces both violins and cellos for amateur, rising, and established professional musicians. Each cello requires a spruce top, which Viola purchases for $400 each. On December 31, 2010, Viola had 40spruce tops in inventory. Spoilage during the production process results in a standard quantity of 1.2spruce tops per cello. Viola wants to maintain an ending inventory of spruce tops equal to 20% of the following quarter’s production needs rounded to the nearest whole unit. The first quarter of 2012 has been budgeted at 140 cellos to be produced. Sales and production needs appear below:

Required

Prepare the purchases budget for spruce tops for 2011.

Problem 4

Batmania, Inc plans to sell 1,195 baseball bats with production scheduled at 1,200 bats during July. Each bat requires 3 board feet of birch and 0.60 hours of direct labor. Birch costs $2.20 per board foot and employees of the company are paid $12.50 per hour. Batmania has 210 board feet of birch and 25 bats in beginning inventory, and plans to have 240 board of birch and 30 bats in ending inventory for the month.

Required

Calculate budgeted direct labor for July.

The 2018 Canadian internet use survey showed, overall, 94% of Canadians had home internet access, and about 85% of the internet users bought goods or services online, spending $57.4 billion. Suppose 64 internet users with home internet access were randomly and independently sampled. Find the probability that at least 25% of those sampled currently did not buy goods or services online. Round your answers to the nearest ten-thousandth (4 decimals).

The 2018 Canadian internet use survey showed, overall, 94% of Canadians had home internet access, and about 84% of the internet users bought goods or services online, spending $57.4 billion. Suppose 64 internet users with home internet access were randomly and independently sampled. Find the probability that at least 20% of those sampled currently did not buy goods or services online. Round your answers to the nearest ten-thousandth (4 decimals).