The Fleming Foundation is a charitable organization founded by Gaylord Fleming and Sandy Fleming. The Flemings intended for the charity to provide programs in health care for the elderly, particularly those in poverty. The two main program divisions of the foundation are mental health for the elderly and housing for the elderly. In addition to these programs, the Foundation also provides health care educational programs and has a significant fund-raising effort to help the Foundation grow and accomplish the goals of the founders. The Foundation is organized into two operating departments—education and program management. These departments are supported by two service departments—information technology (IT) and administration. To summarize, there are four departments (two service departments and two operating departments) and two programs (mental health and housing for the elderly). The service department costs are allocated to the operating departments, and then the operating department costs are allocated to the programs. There are $420,000 of costs directly traceable to each of the four departments. An additional $42,000 of indirect costs is shared among the four departments—$22,500 of which is allocated to the departments based on labor hours and $19,500 of which is allocated to the departments based on the number of personnel (head count) in the departments. The cost, labor hours, and head count in these departments in the most recent year are as follows: Departments Direct Cost Labor Hours Head Count Information technology $ 7,000 2,000 1 Administration 128,000 2,000 4 Education 118,000 4,000 4 Program management 167,000 2,000 3 $ 420,000 IT serves education, administration, and program management 20%, 20%, and 60% of its time, respectively. Administration serves education, IT, and program management 40%, 10%, and 50% of its time, respectively. The costs of the two operating departments (education and program management) are allocated to the two programs (mental health and housing) as follows: the costs in Education are allocated on the basis of labor hours in the programs, while the costs in program management are allocated using the head count used in the two programs. The following table shows the labor hours and head count consumption by the two programs. Labor Hours Head Count Mental health 1,000 1 Housing 1,000 2 Labor hours in education 2,000 Head count in program management 3 Required: Determine the costs allocated to the mental health and housing programs using the (a) direct method, (b) the step method (assuming that IT goes first), and (c) the reciprocal method. (Round percentage calculations to 4 decimal places (e.g., 33.3333%). Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)

The Fleming Foundation is a charitable organization founded by Gaylord Fleming and Sandy Fleming. The Flemings intended for the charity to provide programs in health care for the elderly, particularly those in poverty. The two main program divisions of the foundation are mental health for the elderly and housing for the elderly. In addition to these programs, the Foundation also provides health care educational programs and has a significant fund-raising effort to help the Foundation grow and accomplish the goals of the founders. The Foundation is organized into two operating departments—education and program management. These departments are supported by two service departments—information technology (IT) and administration. To summarize, there are four departments (two service departments and two operating departments) and two programs (mental health and housing for the elderly). The service department costs are allocated to the operating departments, and then the operating department costs are allocated to the programs.

There are $260,000 of costs directly traceable to each of the four departments. An additional $46,500 of indirect costs is shared among the four departments—$25,500 of which is allocated to the departments based on labor hours and $21,000 of which is allocated to the departments based on the number of personnel (head count) in the departments.

The cost, labor hours, and head count in these departments in the most recent year are as follows:

IT serves education, administration, and program management 20%, 20%, and 60% of its time, respectively. Administration serves education, IT, and program management 40%, 10%, and 50% of its time, respectively.

The costs of the two operating departments (education and program management) are allocated to the two programs (mental health and housing) as follows: the costs in Education are allocated on the basis of labor hours in the programs, while the costs in program management are allocated using the head count used in the two programs. The following table shows the labor hours and head count consumption by the two programs.

Required:

Determine the costs allocated to the mental health and housing programs using the (a) direct method, (b) the step method (assuming that IT goes first), and (c) the reciprocal method. (Round percentage calculations to 4 decimal places (e.g., 33.3333%). Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)

An entrepreneur founded a company (ABC) in 2001. Recently, the stock was trading at $42per share. With 850k shares outstanding, EPS were $1.41. The entrepreneur and the members of the board of directors were initially pleased when another firm purchased 50k shares of ABC stock. However, when the purchasing firm bought another 50k shares, the entrepreneur and members of the board became concerned that the purchasing firm might be trying to take over ABC.

The entrepreneur was reminded by the legal staff that ABC had a poison pill provision that took effect when any outside investor accumulated 23% or more of the shares outstanding. Current stockholders, excluding the potential takeover company, were given the privilege of buying up to 500k shares of ABC at 84.04% of current market value. Thus, new shares would be restricted to friendly interests. The legal staff also found that the entrepreneur and “friendly” members of the board currently owned 175k shares of ABC.

In view of the above information, ABC company is in the process of determining the costs described by the following scenarios:

Scenario #1: Takeover firm makes a move

Gets 50% (plus 1 share) of ABC stock at the current market price level, in addition to shares previously accumulated.

Scenario #2: “Friendly” shareholders come to the rescue

Takeover firm exceeds the number of shares determined in the previous scenario, and gets all the way up to 625,000 shares of ABC. Under the poison pill provision, friendly shareholders purchase to prevent a takeover attempt by the acquiring firm, next to what they already own.

Required: In percentage terms, by how much would the poison pill strategy make the purchase more expensive for the takeover firm?

Answer
% Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).

1. On the other hand, the General Motors went on a different direction. General Motors was founded in 1908 and one hundred years old company.  Following the financial crisis in 2008/2009, General Motors filed for chapter 11 bankruptcy protection.  After support from the US government and restructuring, the business operation was able to re-enter the market.  In your ECON 200 class you learnt the conditions at which the firms enter and exit from the market.  Using a graph describes how and when in a perfectly competitive market the firms that are experiencing economic losses close the operation and reenter to the market. In the graph you may use costs and revenue curves.  (25 Points)

An entrepreneur founded a company (ABC) in 2001. Recently, the stock was trading at $43per share. With 850k shares outstanding, EPS were $1.41. The entrepreneur and the members of the board of directors were initially pleased when another firm purchased 50k shares of ABC stock. However, when the purchasing firm bought another 50k shares, the entrepreneur and members of the board became concerned that the purchasing firm might be trying to take over ABC.

The entrepreneur was reminded by the legal staff that ABC had a poison pill provision that took effect when any outside investor accumulated 30% or more of the shares outstanding. Current stockholders, excluding the potential takeover company, were given the privilege of buying up to 500k shares of ABC at 82.17% of current market value. Thus, new shares would be restricted to friendly interests. The legal staff also found that the entrepreneur and “friendly” members of the board currently owned 175k shares of ABC.

In view of the above information, ABC company is in the process of determining the costs described by the following scenarios:

Scenario #1: Takeover firm makes a move

Gets 50% (plus 1 share) of ABC stock at the current market price level, in addition to shares previously accumulated.

Scenario #2: “Friendly” shareholders come to the rescue

Takeover firm exceeds the number of shares determined in the previous scenario, and gets all the way up to 625,000 shares of ABC. Under the poison pill provision, friendly shareholders purchase to prevent a takeover attempt by the acquiring firm, next to what they already own.

Required: In percentage terms, by how much would the poison pill strategy make the purchase more expensive for the takeover firm?

The Porsche Shop, founded in 1985 by Dale Jensen, specializes in the restoration of vintage Porsche automobiles. One of Jensen's regular customers asked him to prepare an estimate for the restoration of a 1964 model 356SC Porsche. To estimate the time and cost to perform such a restoration, Jensen broke the restoration process into four separate activities: disassembly and initial preparation work (A), body restoration (B), engine restoration (C), and final assembly (D). Once activity A has been completed, activities B and C can be performed independently of each other; however, activity D can be started only if both activities B and C have been completed. Based on his inspection of the car, Jensen believes that the following time estimates (in days) are applicable:

Jensen estimates that the parts needed to restore the body will cost $2000 and that the parts needed to restore the engine will cost $6000. His current labor costs are $500 a day.

1. Which project network is correct?
   

   (i)		(ii)
   (iii)		(iv)

   
   
   
2. What is the expected project completion time?
   
   Critical Path:  
   
   If required, round your answer to one decimal place.
   
   Expected time =  days
   
3. Jensen's business philosophy is based on making decisions using a best- and worst-case scenario. Develop cost estimates for completing the restoration based on both a best- and worst-case analysis. Assume that the total restoration cost is the sum of the labor cost plus the material cost.
   
   If required, round non-monetary answers to the nearest whole number. If required, round monetary answers to the nearest dollar.
   
   Best Case (Optimistic Times) = days
   
   Total Cost = $  
   
   Worst Case (Pessimistic Times) =  days
   
   Total Cost = $  
   
4. If Jensen obtains the job with a bid that is based on the costs associated with an expected completion time, what is the probability that he will lose money on the job? If required, round your answer to the nearest dollar.
   
   Bid Cost = $  
   
   If required, round your answer to two decimal places.
   
   The probability is
   
5. If Jensen obtains the job based on a bid of $19,500, what is the probability that he will lose money on the job?
   
   Note: Use Appendix B to identify the areas for the standard normal distribution. If required, round your answer to four decimal places.
   
   The probability of a loss is

An entrepreneur founded a company (ABC) in 2001. Recently, the stock was trading at $45per share. With 850k shares outstanding, EPS were $1.41. The entrepreneur and the members of the board of directors were initially pleased when another firm purchased 50k shares of ABC stock. However, when the purchasing firm bought another 50k shares, the entrepreneur and members of the board became concerned that the purchasing firm might be trying to take over ABC. The entrepreneur was reminded by the legal staff that ABC had a poison pill provision that took effect when any outside investor accumulated 24% or more of the shares outstanding. Current stockholders, excluding the potential takeover company, were given the privilege of buying up to 500k shares of ABC at 77.91% of current market value. Thus, new shares would be restricted to friendly interests. The legal staff also found that the entrepreneur and “friendly” members of the board currently owned 175k shares of ABC. In view of the above information, ABC company is in the process of determining the costs described by the following scenarios: Scenario #1: Takeover firm makes a move Gets 50% (plus 1 share) of ABC stock at the current market price level, in addition to shares previously accumulated. Scenario #2: “Friendly” shareholders come to the rescue Takeover firm exceeds the number of shares determined in the previous scenario, and gets all the way up to 625,000 shares of ABC. Under the poison pill provision, friendly shareholders purchase to prevent a takeover attempt by the acquiring firm, next to what they already own. Required: In percentage terms, by how much would the poison pill strategy make the purchase more expensive for the takeover firm?

Founded in 1906, Rayovac had become, over the course of the twentieth century, one of the best-known battery producers in the U.S. However in 1996, with its market share steadily eroding due to fierce competition from Duracell, Energizer, and Panasonic, it was purchased by the private equity firm Thomas H. Lee and Partners (THL). Over the next decade the firm embarked upon an ambitious acquisitions program which saw it grow from a $400 million annual revenue business in 1996 to an over $2.8 billion annual revenue business by 2005.

In 2003, the global battery market was worth about $24 billion in sales with the U.S. accounting for about one third of global consumption. About 73% of Rayovac’s revenues came from North America. Though the U.S. market was growing at an annual rate of 7.4%, fierce competition in the U.S. led to considerable price discounting and required significant advertising and promotional expenditures. Rayovac, as the number three player in market share behind Duracell (a division of Gillette) and Energizer, competed as a value brand rather than as a premium brand. It sold a high-quality product but at prices 10-15% below its main competitors. With the proliferation of personal electronic devices, Rayovac expected strong growth to continue, especially in emerging markets around the world as income grew there.

Q1: Do a SWOT analysis for Rayovac.

Strengths:

Weakness:

Opportunities:

Threats:

Glasgow Company is a manufacturer of chemical products and minerals/vitamin supplements. The company was founded in 1999. and is capable of performing all manufacturing, marketing, and sales functions. Its products are sold in United States and some other countries, including Japan, Korea and New Zealand.

Glasgow supplies its products either in pwerder form, or in the form of tablets. Upon receiving an order, the company creates a job cost sheet to accumulate costs from different sources such as materials, labor, and overheads. A material requisistion is created to place an order for material as per the job specification. A chemist usually monitors the specific quantities of material that is needed. A material requisition and the purchase order would be the source documents for extracting information about the direct and indirect material being used for each job. The production manager creates a time sheet for different production departments and this would be the source documents to get the labor cost. The overhead costs are charged using direct manufacturing labor as the cost allocation base. Since manufacturing and blending of the Chemical is a highly specialized process that requires utmost precision, an interal system of quality control is in placed at every level of material movement, from raw material to finished product. Normally it takes several days to get the finished product from the time of introduction of raw material, blending process, drying process, and eventually getting a final product. A few additional days may be needed for labeling and packaging. The powder or the tablets are then shipped to the customer.

Since each order is customized to meet the special needs of it customers, Glasgow uses a job-ordering system. Recently, Glasgow received a request for a 400 kilogram order of the Chemical. The customer offered to pay $8.50 per kilogram. Upon receivin the request and the customer's specification, Gloria White, the cost accountant, requested a load sheet from the company's chemist. The load sheet prepared showed the following material requirements.

Material Amount Required

Aspartic acid 260.00kg

CItric acid 20.00

K2C03 (50%) 162.50

Rice 40.00

Gloria also received past jobs that were similar to the requested order and found that the expected direct labor time was 20 hours. The production workers at Glasgow earn an average of $6.00 per hour plus $5.50 per hour for insurance and additional benefits.

Purchasing sent Gloria a list of prices for the materials needed for the job.

Material Material Price per Kilogram

Aspartic acid $5.25

Citric acid 2.10

K2CO3 (50%). 4.34

Rice 0.46

Overhead is applied using a company wide rate based on the direct labor cost. The for the current period is 120 percent of direct labor cost.

Whenever a customer requests a bid, Glasgow usually estimates the manufacturing costs of the job and then adds a markup of 25 prcent. This markup varies depending on the competition and general economic conditions. Currently, the industry is thriving and Glasgow is operating at capacity.

The following is required:

1. Analyze the data and calculate the expected total cost and cost per unit of producing 400 kilogram of the Chemical. Should Glasgow accept the price offered by the perspective customer? Why or why not?

2. SUppose Glasgow and perspective customer agree on a price of cost (as calcuated under item 1) plis 25 percent. What is the gross prodfit that Glasgow expects to earn of the job?

3. Suppose lkthat the actual costs of producing 400 kg of the Chemical were as follows:

Direct material Aspartic acid $1,460.00

CItric acid $. 40.00

K2CO3 $ 769.00

Rice $. 17.50

Total material costs. $2286.50

DIrect labor $250.00

Overhead $270.50

What is the actual cost per-unit cost? The bid price is based on expected costs. How much did Glasgow gain (or lose) because of the actual costs differing from the expected costs? Suggest some possible reasons why the actual costs differed from the projected costs.

4. Assume that the customer had agreed to pay actual manufacturing costs plus 25 percent. Suppose the actual costs are as described in Requirement 3 with one addition: an underapplied overhead variance is allocated to Cost of Goods Sold and spread across the jobs sold in proportion to their total cost (unadjusted cost of goods sold). Assume that the underapplied overhead cost added to the job in questions is $50.00. Upon seeing the addition of the underapplied overhead in the itemized bill, the customer calls nd complains about having to pay for Glasgow's inefficient use of overhead costs. If you were assigned to deal with this customer, what kind of response would you prepare? How would you explain and justify the addition of the underapplied overhead cost to the customer's bill? (Just explain this point, no calculations required).

PLEASE show all calculations as follows so that I can input into excel spreadsheet sheet:

1. Direct Materials costs Qty Price Toatl amount

Aspartic Acid 260 kg

Citric Acid 20 kg

K2CO3 (50%) 162.50 kg

Rice 40 kg

Direct Manfacturing labor 30 hours

Manufacturing overheads 120% of labor cost

Budgeted cost of producing 400 kg Total Per unit

Direct material costs

Direct Mfg Labor costs

Mfg Overhead

Total mfg cost

Mark up 25% of cost

Price for 400 kg

Since the customer has offered to purchase the chemical at $8.50, it is more than the estimated price $8.24 per kg. Glasgow can sell the Chemical to the perspective customer.

2. Sales Total Per unit

Less: cost of goods sold

Gross Profit

3. Actual cost of producing 400 kg   Total Per unit

Direct material costs

Direct Mfg Labor costs

Mfg Overhead

Mark up 25% of cost

Price for 400 kg

Gain or loss due to difference in budgeted cost and actual cost:

   Actual cost:

Budgeted cost

Difference

Appreciate your help on this one. Thanks.

An entrepreneur founded a company (ABC) in 2001. Recently, the stock was trading at $41per share. With 850k shares outstanding, EPS were $1.41. The entrepreneur and the members of the board of directors were initially pleased when another firm purchased 50k shares of ABC stock. However, when the purchasing firm bought another 50k shares, the entrepreneur and members of the board became concerned that the purchasing firm might be trying to take over ABC. The entrepreneur was reminded by the legal staff that ABC had a poison pill provision that took effect when any outside investor accumulated 27% or more of the shares outstanding. Current stockholders, excluding the potential takeover company, were given the privilege of buying up to 500k shares of ABC at 76.44% of current market value. Thus, new shares would be restricted to friendly interests. The legal staff also found that the entrepreneur and “friendly” members of the board currently owned 175k shares of ABC. In view of the above information, ABC company is in the process of determining the costs described by the following scenarios: Scenario #1: Takeover firm makes a move Gets 50% (plus 1 share) of ABC stock at the current market price level, in addition to shares previously accumulated. Scenario #2: “Friendly” shareholders come to the rescue Takeover firm exceeds the number of shares determined in the previous scenario, and gets all the way up to 625,000 shares of ABC. Under the poison pill provision, friendly shareholders purchase to prevent a takeover attempt by the acquiring firm, next to what they already own. Required: In percentage terms, by how much would the poison pill strategy make the purchase more expensive for the takeover firm? Answer % Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places (for example: 28.31%).