The Eastern Technology Company manufactures Weather Radios for sale to retailers such as Wal-Mart, Target, etc.

The 2016 quarterly unit sales estimates and projected sales prices per unit areas follows:

Also, note that that projected sales (and projected production) for Quarter 1 of 2017 is 10,000 units.

Product Cost Assumptions

The company’s product requires two raw materials, resistors and switches. Cost parameters are as follows:

Eastern applies manufacturing overhead using two cost drivers: direct-labor hours and machine hours.

Ending Inventories

The desired ending inventories for each of the two direct materials is 10% of the next quarter’s respective amount of direct materials needed for production. The desired finished goods ending inventory is 5% of the next quarter’s budgeted sales units. Beginning inventory for direct materials and finished goods are assumed to be zero as of 1/1/2016.

Prepare the Following Budgets:

Sales Budget

Production Budget

Direct Materials Purchases Budget

Direct Labor Budget

Manufacturing Overhead Budget

A particular city had only three industrial property sales in the most recent quarter, as shown in the table below. What is the average market capitalization rate?

Question 9 options:

The Tobler Corporation has budgeted production for next year as follows:

Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year total 4,000 pounds. The raw materials inventory at the end of each quarter should equal 20% of the next quarter's production needs. Budgeted purchases of raw materials in the second quarter would be:

Multiple Choice

• 63,200 pounds

• 51,200 pounds

• 50,400 pounds

• 49,600 pounds

Due to the corona virus,

How much of a decline do you anticipate for the Second Quarter of 2020? Will be in recession? This would mean GDP was down during the first quarter and/or the third quarter. Will it last long enough to be the second depression in 100 yeards?  

On inflation/deflation,what would your life have been like during the early 80's when the inflation rate was in double digits? Imagine what life would have been like in Germany in 1923, when prices were rising daily and the Deutschmark was losing ground daily against the dollar?

251,600selected answer incorrect (i got this wrong)      

(I got this wrong)

Anderson Company is preparing budgets for the upcoming quarter ending October 31st. The marketing director has provided the following information to the Budget Committee. Currently, the company sells one product, the korda, for $25 per unit. Budgeted sales (in units) for the next five months are as follows:

August. 15,000

September. 45,000

October. 37,000

November. 25,500

December. 26,250

• To minimize the risk of stockouts, the company has a policy to maintain an ending inventory of 18% of the following month’s budgeted sales. At the beginning of the quarter, the company had 7,500 units of korda in inventory.

• Each unit of korda requires 2 kilograms of direct materials. The company has a policy that materials on hand at the end of each month must be a minimum of 20% of the following month’s production. At the beginning of the quarter, the company has 15,600 kilograms of direct materials on hand. Each kilogram of direct material costs $3.00.

• Each unit of korda requires 0.2 hours (12 minutes) of direct labour. The company pays employees a standard wage of $15.00 per hour. • The company applies overhead on the basis of direct labour hours. The variable manufacturing overhead rate is $12.00 per direct labour hour. Fixed overhead is $81,978 per month.

• The company has variable selling and administrative costs that are equal to $0.75 per unit sold. Fixed selling and administrative costs are estimated to be $100,000 per month. • All sales are made on account. The company collects 65% of the sales revenue in the month of the sale, and the remaining 35% in the month following the sale. At the start of 2 the quarter, the company has $45,000 in accounts receivable that are deemed to be fully collectible.

• As stated, the company pays $3.00 per kilogram of direct materials. The company pays for 70% the direct materials purchases in the month of the purchase and pays the remaining 30% in the month following the purchase. At the beginning of the month, the company owes $20,000 to creditors.

Budgeted Sales Revenue: August - $375,000. Sept - $1,125,000. October - $937,500. Qauarter - $2,437,500

Required Production in Units: August - 15,600. Sept - 43.650. October - 35,340. Quarter - 94,590

Total Direct Labour Cost: August - $46,800. Sept - $130,950. October - $106,020 Quarter - $283,770

(A) Prepare the overhead budget for August, September, and October, and for the quarter-end.

(B) Prepare the ending finished goods inventory budget for the quarter-end.

(C) Prepare a cost of goods sold budget for the quarter-end.

(D) Prepare the selling and administrative expense budget for August, September, and October, and for the quarter-end.

Draw your own graph by adding a new AS or AD curve to the graph above to illustrate the effect of each of the following conditions: a. The price of crude oil rises significantly. b. Spending on national defense doubles. c. The costs of imported goods increase. d. An improvement in technology raises labor productivity.

In your opinion, should the government cut its spending levels, and if so, what specific area should be cut first? Explain your reasoning. What could be the possible unintended consequences of such a cut?

This discussion covers 3 skills.

• Describe government spending at federal, state, and local levels.
• Describe how federal deficits and the national debt relate to the economy.
• Describe how automatic stabilizers respond to economic events.

What would happen to a nation’s production possibilities curve when its expenditures on consumer goods/services = $2,300, expenditures on exports = $200, social security taxes = $250, corporate income taxes = $100, government spending = $700, personal income taxes = $800, expenditures on investment goods/services = $650, expenditures on imports = $350, and depreciation = $650.

a. This nation's PPC would expand.

b. This nation's PPC would contract.

c. This nation's PPC would remain unchanged.

d. There is not enough information to determine what happens to this nation's PPC.

and

According to Monetarist theory, the correct policy to restrain the economy would be to:

a. Raise taxes to decrease aggregate demand.

b. Increase the reserve requirement to decrease aggregate supply.

c. Buy bonds to increase aggregate demand.

d. Decrease government spending to decrease aggregate demand.

e. Increase the discount rate to decrease aggregate demand.

Requirement 2:

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:

a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

e. After seeing this revised budget, the production manager cautioned that due to the current production constraint, a complex milling machine, the plant can produce no more than 90,000 units in any one quarter. Is this a potential problem?

No

Yes