Curtis & Company is an architectural firm specializing in home remodeling for private clients and new office buildings for corporate clients.

Curtis & Company charges customers at a billing rate equal to 130% of the client's total job cost. A client's total job cost is a combination of 1) professional cost based on the professional hours spent on the client's job, and 2) operating costs allocated to the client's job. Curtis currently allocates operating costs to jobs based on the number of professional hours spent on the job.

Curtis estimates its five professionals will work a total of 9,000 hours on client jobs during the year, and their salaries will total $990,000. All operating costs other than professional salaries (travel reimbursements, copy costs, secretarial salaries, office lease, etc.) can be grouped into three activities. Relevant information for these activities are estimated as follows:

Amy Lee hired Curtis & Company to design her kitchen remodeling. A total of 22 professional hours were spent on this job. In addition, Amy's remodeling job required one of the professionals to travel back and forth to her house for a total of 150 miles. The blueprints had to be copied five times because Amy changed the plans several times. In addition, 15 hours of secretarial time were used lining up the subcontractors for the job.

Question: What is the total cost of Amy Lee's remodeling job under the current single-driver system?

Question: What would be the total cost of Amy Lee's remodeling job under an activity-based costing system?

3. A package delivery service adopted a new dispatching system to try to reduce the total mileage required by its truck fleet to make deliveries. The new system would be worth the cost if it reduced the fleet mileage by more than 10% from its current level of 2200 miles per day. The miles required for each of the 66 days under a trial of the new system are recorded in column 1 of the Excel data file named “Package Delivery”. Using the given data and 7% level of significance, please conduct an appropriate test to determine if the new dispatching system is worth its cost. Based on your results, do you think the new system is worth its cost? Show the necessary steps and explain your conclusion

Problem 3-1 (Algorithmic) Schedule C (LO 3.1) Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott’s income statement for the year shows the following: Income Statement Scott Butterfield, CPA Income Statement 12/31/2017 Current Period Prior Period 1/1/2017 to 12/31/2017 1/1/2016 to 12/31/2016 REVENUES Tax Services $156,400 $72,154 Accounting Services 15,640 50,256 Other Consulting Services 34,408 7,690 TOTAL REVENUES 206,448 130,100 COST OF SERVICES Salaries 31,280 29,400 Payroll Taxes 2,387 2,275 Supplies 300 1,225 TOTAL COST OF SERVICES 33,967 32,900 GROSS PROFIT (LOSS) 172,481 97,200 OPERATING EXPENSES Advertising and Promotion 2,000 – Business Licenses and Permits 620 250 Charitable Contributions 400 250 Continuing Education 1,500 – Dues and Subscriptions 1,640 3,500 Insurance 9,384 870 Meals and Entertainment 7,038 5,400 Office Expense 3,128 – Postage and Delivery 85 – Printing and Reproduction 1,564 – Office Rent 4,692 13,800 Travel 6,256 750 Utilities 1,877 2,724 TOTAL OPERATING EXPENSES 40,184 27,544 NET INCOME (LOSS) $132,297 $69,656 Scott also mentioned the following: The expenses for dues and subscriptions were his country club membership dues for the year. The charitable contributions were made to a political action committee. Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold. Scott placed a business auto in service on January 1, 2014 and drove it 4,093 miles for business, 2,456 miles for commuting, and 4,912 miles for nonbusiness purposes. His wife has a car for personal use.

The law firm of Poe, Patterson and Henderson, a general partnership, represents 20 plaintiffs in a class-action product liability lawsuit, with trial scheduled to begin Monday of next week. It will be the biggest trial in the history of the firm, and the partners understand that success will depend, for the most part, on a collaborative effort on the part of all professionals at the firm, including partners, associate attorneys, paralegals, and secretarial staff. It is the Friday before the trail, and there will be no weekend for those working at Poe, Patterson and Henderson. The partners and the associate attorneys are reviewing depositions in the conference room. The clock on the wall shows 11:00 p.m. Partner Henderson turns to a first-year associate, J. Benjamin Fotheringham, and says “Ben, how about going to Donovan’s Delicatessen and picking up a few subs for all of us? Here’s $100.” Donovan’s Delicatessen is a favorite of the firm for “late-night” trial preparation sustenance, and is located approximately two miles away, down Chestnut Avenue. Eager to make a positive impression on senior partner Henderson, and ready to escape the “tunnel-vision” brought on by twelve hours of deposition review, Ben heads for his car. In a rush to complete the “deli run” quickly, Ben accelerates his car to 50 miles per hour. The posted speed limit on Chestnut Avenue is 35 miles per hour. Fidgeting with his compact disc player in order to listen to an audio-recorded deposition, Ben inadvertently crosses the center line and collides with an oncoming automobile operated by Brandi Kernigan. Ms. Kernigan is severely injured, and experiences $22,000 in medical expenses; her $25,000 Volkswagen is a total loss. She sues Fotheringham individually, and the law firm partnership of Poe, Patterson and Henderson. Kernigan also lists Poe, Patterson and Henderson as individual defendants. Is the law firm of Poe, Patterson and Henderson liable for Brandi Kernigan’s injuries? Are Poe, Patterson and Henderson individually liable for Kernigan’s injuries? 250 words

The population of Nevada, P(t), in millions of people, is a function of t, the number of years since 2010. Explain the meaning of the statement P(8) = 3. Use units and everyday language. (1 point)
2. Find the slope-intercept form of the equation of the line through the points (8, 25) and (-2, -13). (2 points)
3. At 8am, Charles leaves his house in Spartanburg, SC and drives at an average speed of 65 miles per hour toward Orlando, FL. At 11:45am, he stops for lunch in Savannah, GA, which is 276.25 miles from Orlando. a. Find a linear formula that represents Charles’ distance, D, in miles from Orlando as a function of t, time in hours since 8am. (2 points)
b. Find and interpret the horizontal intercept. Remember to write your intercept as a point! (2 points)
c. Find and interpret the vertical intercept. Remember to write your intercept as a point! (2 points)
1
2
4. The temperature in ◦F of freshly prepared soup is given by T(t) = 72 + 118e−0.018t, where t represents time in minutes since 6pm when the soup was removed from the stove. a. Determine the value of T(30) and interpret your answer in everyday language. (2 points)
b. Find and interpret the vertical intercept. Remember to write your intercept as a point! (2 points)
5. Decide whether the following function is linear. Explain how you know without finding the equation of the line.
x 9 12 16 23 34 f(x) 26.6 36.2 49 74.9 110.1
6. Attendance at a local fair can be modeled by A(t) = −30t2 + 309t + 20 people, where t represents the number of hours since 10am. a. Find the average rate of change of the attendance from t = 3 to t = 8. Give units. (2 points)
b. Interpret your answer from (a) in everyday language.

Please answer both.

High-Low Method for a Service Company

Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved.

Determine the variable cost per gross-ton mile and the total fixed cost.

Break-Even Sales and Sales Mix for a Service Company

Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:

It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight.

a. Compute the break-even number of seats sold on a single round-trip flight for the overall enterprise product, E. Assume that the overall product mix is 10% business class and 90% economy class tickets.

b. How many business class and economy class seats would be sold at the break-even point?

An ordinance requiring that a smoke detector be installed in all previously constructed houses has been in effect in a particular city for 1 year. The fire department is concerned that many houses remain without detectors. Let p= the true proportion of such houses having detectors and suppose that a portion of random sample of 25 homes is inspected. If the sample strongly indicates that fewer than 80% of all houses have a detector, the fire department will campaign for a mandatory inspection program. Because of the costliness of the program, the department prefers not to call for such inspections unless denote the number of homes with detectors among the 25 sampled. Consider rejecting the claim that p ≥ 0.8 if x ≤ 15.

1. What is the probability that the claim is rejected when the actual value of p is 0.8?
2. What is the probability of not rejecting the claim when p = 0.7? When p = 0.6?
3. How do the “error probabilities” of parts (a) and (b) change if the value 15 in the decision rubble is replaced by 14?

Please use R or Rstudio for this exercise and show everything, including the R output. Pay attention in everything in Bold, please.

" The quality of Pinot Noir wine is thought to be related to the properties of clarity, aroma, body, flavor, and oakiness. Data for 38 wines are given in stat5_prob1.

(a) Fit a multiple linear regression model relating wine quality to these regressors.

(b) Construct the ANOVA table.

(c) Test for the significance of the regression in a 0.05 significance level. What conclu- sions can you draw?

(d) Use the t tests to assess the individual contribution of each regressor to the model in a 0.05 significance level. Discuss your findings.

(e) What is the contribution of the set of clarity and aroma to the model, given that all of the other regressors are included? Perform this hypothesis test using 0.05 significance level.

(f) Find a 95% confidence interval for the regression coefficient for flavor.

(g) Calculate R^2 and R^2 adj for this model. Compare these values to the R^2 and R^2 adj for the regression model relating wine quality to aroma and flavor. Discuss your results.

***Here is the data for the 38 wines***

# quality is y
# clarity is x1, aroma is x2, body is x3, flavor is x4, oakiness is x5.

y=c(9.8, 12.6, 11.9, 11.1, 13.3, 12.8, 12.8, 12, 13.6, 13.9, 14.4, 12.3, 16.1, 16.1, 15.5, 15.5, 13.8, 13.8, 11.3, 7.9, 15.1, 13.5, 10.8, 9.5, 12.7, 11.6, 11.7, 11.9, 10.8, 8.5, 10.7, 9.1, 12.1, 14.9, 13.5, 12.2, 10.3, 13.2)

x1=c(1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 1, 0.5, 0.8, 0.7, 1, 0.9, 1, 1, 1, 0.9, 0.9, 1, 0.7, 0.7, 1, 1, 1, 1, 1, 1, 1, 0.8, 1, 1, 0.8, 0.8, 0.8, 0.8)

x2=c(3.3, 4.4, 3.9, 3.9, 5.6, 4.6, 4.8, 5.3, 4.3, 4.3, 5.1, 3.3, 5.9, 7.7, 7.1, 5.5, 6.3, 5, 4.6, 3.4, 6.4, 5.5, 4.7, 4.1, 6, 4.3, 3.9, 5.1, 3.9, 4.5, 5.2, 4.2, 3.3, 6.8, 5, 3.5, 4.3, 5.2)

x3=c(2.8, 4.9, 5.3, 2.6, 5.1, 4.7, 4.8, 4.5, 4.3, 3.9, 4.3, 5.4, 5.7, 6.6, 4.4, 5.6, 5.4, 5.5, 4.1, 5, 5.4, 5.3, 4.1, 4, 5.4, 4.6, 4, 4.9, 4.4, 3.7, 4.3, 3.8, 3.5, 5, 5.7, 4.7, 5.5, 4.8)

x4=c(3.1, 3.5, 4.8, 3.1, 5.5, 5, 4.8, 4.3, 3.9, 4.7, 4.5, 4.3, 7, 6.7, 5.8, 5.6, 4.8, 5.5, 4.3, 3.4, 6.6, 5.3, 5, 4.1, 5.7, 4.7, 5.1, 5, 5, 2.9, 5, 3, 4.3, 6, 5.5, 4.2, 3.5, 5.7)

x5=c(4.1, 3.9, 4.7, 3.6, 5.1, 4.1, 3.3, 5.2, 2.9, 3.9, 3.6, 3.6, 4.1, 3.7, 4.1, 4.4, 4.6, 4.1, 3.1, 3.4, 4.8, 3.8, 3.7, 4, 4.7, 4.9, 5.1, 5.1, 4.4, 3.9, 6, 4.7, 4.5, 5.2, 4.8, 3.3, 5.8, 3.5). "

An elementary reaction A+B  C+D is to be carried out in a non-ideal CSTR which has both bypassing and a stagnant region in this reactor. The measured reactor volume is 1.0 m3 and the flow rate to the reactor is 0.1 m3/min. The reaction rate constant is 0.28 m3/kmol.min. The feed is equimolar in A and B with an entering concentration of A equal to 2.0 kmol/m3 k. Calculate the conversion that can be expected in this reactor if the model parameters of α and β were determined from a tracer test and were found to be 0.8 and 0.3 respectively.