Flexible Overhead Budget
Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:
| Variable overhead cost: | ||
| Indirect factory labor | $76,500 | |
| Power and light | 2,790 | |
| Indirect materials | 21,600 | |
| Total variable overhead cost | $100,890 | |
| Fixed overhead cost: | ||
| Supervisory salaries | $35,310 | |
| Depreciation of plant and equipment | 22,200 | |
| Insurance and property taxes | 14,120 | |
| Total fixed overhead cost | 71,630 | |
| Total factory overhead cost | $172,520 |
Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.
| Leno Manufacturing Company | |||
| Factory Overhead Cost Budget-Press Department | |||
| For the Month Ended November 30 | |||
| Direct labor hours | 7,000 | 9,000 | 11,000 |
| Variable overhead cost: | |||
| Indirect factory labor | $. ? | $. ? | $ ? |
| Power and light | ? | ? | ? |
| Indirect materials | ? | ? | ? |
| Total variable factory overhead | $ ? | $ ? | $ ? |
| Fixed factory overhead cost: | ? | ? | ? |
| Supervisory salaries | $ ? | $ ? | $ ? |
| Depreciation of plant and equipment | ? | ? | ? |
| Insurance and property taxes | ? | ? | ? |
| Total fixed factory overhead | $. ? | $ ? | $ ? |
| Total factory overhead cost | $ ? | $ ? | $ ? |
5.
Factory Overhead Cost Variances
The following data relate to factory overhead cost for the production of 4,000 computers:
| Actual: | Variable factory overhead | $71,800 |
| Fixed factory overhead | 27,000 | |
| Standard: | 4,000 hrs. at $23 | 92,000 |
If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $101,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
| Variance | Amount | Favorable/Unfavorable |
| Variable factory overhead controllable variance | $ | |
| Fixed factory overhead volume variance | ||
| Total factory overhead cost variance | $ |
In: Accounting
The following statements come from a Federal Reserve press release dated June 14, 2017:
The Board of Governors of the Federal Reserve System voted unanimously to raise the interest rate paid on required and excess reserve balances to 1.25%, effective June 15, 2017.
The Board of Governors of the Federal Reserve System voted unanimously to approve a 1/4 percentage point increase in the primary credit rate to 1.75%, effective June 15, 2017.
With the above information in mind, answer and complete the following:
What is the effect of the Fed’s action on interest rates in the
short-run? What is the effect on the aggregate price level and
aggregate output in the short-run?
Demonstrate your answer with a graph of the loanable funds
market and AD/AS analysis.
In: Economics
The Longheel Press produces memo pads in its local shop. The company can rent its equipment and hire workers at competitive rates. Equipment needed for this operation can be rented at $52 per hour, and labor can be hired at $12 per worker hour. The company has allocated $150,000 for the initial run of memo pads. The production function using available technology can be expressed as:
Q = 0.25K0.25L0.75,
where Q represents memo pads (boxes per hour), K denotes capital input (units per hour), and L denotes labor input (units of worker time per hour).
a. Construct the isocost equation and the marginal products of labor and of capital.
b. Determine the appropriate input mix to get the greatest output for an outlay of $150,000 for a production run of memo pads. Also, compute the level of output.
c. Explain what would happen in the short run (keeping capital fixed) to the appropriate input mix if production were increased. How would the input combination change from the short run to the long run? And compare the short run cost and the long run cost.
In: Economics
"Durable press" cotton fabrics are treated to improve their recovery from wrinkles after washing. "Wrinkle recovery angle" measures how well a fabric recovers from wrinkles. Higher is better. Here are data on the wrinkle recovery angle (in degrees) for the same fabric specimens discussed in the previous exercise:
| Permafresh | Hylite |
|---|---|
| 140 | 167 |
| 109 | 195 |
| 106 | 175 |
| 128 | 157 |
| 139 |
A manufacturer wants to know how large is the difference in mean wrinkle recovery angle.
In: Statistics and Probability
In: Statistics and Probability
Sally Smith works for Peterson Press, a fairly large book
publishing firm. Her best friend and rival, Molly Murray, works for
Lifeline Books, a smaller publisher. Both companies issued $100,000
in bonds on July 1. Peterson's bonds were issued at a discount,
while Lifeline's were issued at a premium. Molly sent Sally an
email the next day. She told Sally that it was obvious who the
better publisher was—the market had shown its preference! She
reminded Sally again of her recent increase in salary as further
proof of the superiority of Lifeline Books.
Instructions
Draft a short note for Sally to send to Molly. Explain how such a
result could occur.
In: Accounting
In: Physics
1. "Durable press" cotton fabrics are treated to improve their
recovery from wrinkles after washing. "Wrinkle recovery angle"
measures how well a fabric recovers from wrinkles. Higher is
better. Here are data on the wrinkle recovery angle (in degrees)
for the same fabric specimens discussed in the previous
exercise:
| Permafresh | Hylite |
|---|---|
| 10 | 19 |
| 11 | 15 |
| 13 | 16 |
| 12 | 17 |
| 14 | 18 |
| 14 |
A manufacturer wants to know how large is the difference in mean
wrinkle recovery angle.
Give a 98% confidence interval for the difference in mean wrinkle
recovery angle:
| ( , | ) |
| [three decimal accuracy] | [three decimal accuracy] |
2. Heart rates are determined before and 30 minutes after a
Kettleball workout. It can be assumed that heart rates (bpm) are
normally distributed. Use the data provided below to test to
determine if average heart rates prior to the workout are
significantly lower than 30 minutes after a Kettleball workout at
the 0.02 level of significance. Let μ1μ1 = mean before
workout.
|
Construct the appropriate confidence interval for the given level
of significance.
| ( | , | ) | |
| [three decimal accuracy] | [three decimal accuracy] |
In: Statistics and Probability
Q3 Exerpt taken from Engro Corporations press release:
“Engro Corp is one of Pakistan’s largest conglomerates, in operation for over 45 years, and with businesses ranging from fertilizers to power generation. Currently Engro Corp’s portfolio consists of seven businesses which include chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial automation, foods, power generation and commodity trade.
Engro Corporation Limited has announced the launch of the second issue of the Engro Rupiya Certificates savings option, which provides investors with an unprecedented 14.5% (coupon) rate of return. This issuance follows the successful launch of the certificates in October 2010.
The second release of Engro Rupiya Certificates also offers profit payments twice in a year for a minimum amount of PKR 25,000, invested for a period of 3 years. The product offers investors the option to encash the certificates at any time, with the profit accumulated from the date of purchase to the date of encashment. Engro has also provided a unique service for the convenience of its customers, enabling certificate holders to conduct transactions and receive profit payments at home.”
In: Finance
Exerpt taken from Engro Corporations press release:
“Engro Corp is one of Pakistan’s largest conglomerates, in operation for over 45 years, and with businesses ranging from fertilizers to power generation. Currently Engro Corp’s portfolio consists of seven businesses which include chemical fertilizers, PVC resin, a bulk liquid chemical terminal, industrial automation, foods, power generation and commodity trade.
Engro Corporation Limited has announced the launch of the second issue of the Engro Rupiya Certificates savings option, which provides investors with an unprecedented 14.5% (coupon) rate of return. This issuance follows the successful launch of the certificates in October 2010.
The second release of Engro Rupiya Certificates also offers profit payments twice in a year for a minimum amount of PKR 25,000, invested for a period of 3 years. The product offers investors the option to encash the certificates at any time, with the profit accumulated from the date of purchase to the date of encashment. Engro has also provided a unique service for the convenience of its customers, enabling certificate holders to conduct transactions and receive profit payments at home.”
In: Finance