Corbett Company develops software. The market is very competitive and Corbett's competitors continue to introduce new products at low prices. Corbett offers a wide variety of software - from simple programs to extremely complex programs. Like most software companies Corbett's raw materials costs are insignificant. You have recently been hired by Corbett as a business analyst and attended a seminar on Activity-Based Costing (ABC) and are considering using it at Corbett. Working with the Software Department Manager you identigy the following activities, related costs, and cost-allocation bases.

Activity Estimated indirect acitivity costs Allocation base estimated quantity of allocation base

Applications development $1,800,000 New applications 6 new applications

Content production 2,800,000 Lines of code 14 million lines

Testing 248,000 Testing hours 1,600 testing hours

Total indirect costs 4,848,000   

Corbett is planning to develop the following new applications

1) X-Page

2) X-Secure

X-page requires 680,000 lines of code and 90 hours of testing, while x-secure requires 10.2 million lines of code and 540 hours of testing. Corbett expects to produce and sell 20,000 units of x-page and 8 units of x-secure.

1) Compute the cost allocation rate for each activity.

2) Use the ABC allocation rates to compute the indirect cost of each unit of x-page and x-secure.

3) The company's original single-allocation based cost system allocated indirect costs to products at $113 per programmer hour. x-page requires 8,000 programmer hours while x-secure requires 12,000 programmer hours. Compute the total indirect costs allocated to x-page and x-secure under the original system. Compute the indirect cost per unit for each product.

4) Write a memo to the General Manager of Corbett Company comparing the ABC costs per unit to the costs from the simpler original system. Explain why the unit costs changed and whether you think the new ABC system is likely to pass the cost-benefit test.

Corbett Company develops software. The market is very competitive and Corbett's competitors continue to introduce new products at low prices. Corbett offers a wide variety of software - from simple programs to extremely complex programs. Like most software companies Corbett's raw materials costs are insignificant. You have recently been hired by Corbett as a business analyst and attended a seminar on Activity-Based Costing (ABC) and are considering using it at Corbett. Working with the Software Department Manager you identigy the following activities, related costs, and cost-allocation bases.

Activity Estimated indirect acitivity costs Allocation base estimated quantity of allocation base

Applications development $1,800,000 New applications 6 new applications

Content production 2,800,000 Lines of code 14 million lines

Testing 248,000 Testing hours 1,600 testing hours

Total indirect costs 4,848,000   

Corbett is planning to develop the following new applications

1) X-Page

2) X-Secure

X-page requires 680,000 lines of code and 90 hours of testing, while x-secure requires 10.2 million lines of code and 540 hours of testing. Corbett expects to produce and sell 20,000 units of x-page and 8 units of x-secure.

1) Compute the cost allocation rate for each activity.

2) Use the ABC allocation rates to compute the indirect cost of each unit of x-page and x-secure.

3) The company's original single-allocation based cost system allocated indirect costs to products at $113 per programmer hour. x-page requires 8,000 programmer hours while x-secure requires 12,000 programmer hours. Compute the total indirect costs allocated to x-page and x-secure under the original system. Compute the indirect cost per unit for each product.

4) Write a memo to the General Manager of Corbett Company comparing the ABC costs per unit to the costs from the simpler original system. Explain why the unit costs changed and whether you think the new ABC system is likely to pass the cost-benefit test.

1. You just has a bunch on twinkies for breakfast. Initially, you feel pretty good, but then feel low energy. After a few hours, you start to feel a little better. Describe what is happening to glucose regulation starting from just before before breakfast to a few hours after you eat. Be sure to mention what is happening in the pancreas, liver, muscle and adipose.  

2. After consuming a high salt diet, why to both ANF and AVP go up together?

The Sandhill’s Partnership consists of two partners- Kim and Doug. Their capital balances just before acceptance of a third partner, Sandy, was $100,000 and $100,000 respectively. Kim and Doug share net income or loss equally. Sandy’s contribution was $100,000 for assumption A and $120,000 for assumption B. Prepare the two journal entries for each of the independent situations on the partnership books for the new partner’s capital account reflecting

A) 20% ownership based on capital balances before and after Sandy’s contribution

B) 60% ownership based on capital balances before and after Sandy’s contribution

You want to know whether left handed athletes weigh more or before. You can only find 5 of them. You have have to assum and for this problem you will assume that they are a single random smape from a normal population.

Test the claim that the weiht of the left hnaded athletes does not chnage from before to after their season. Be sure to give both hypothesis(Ha and Ho), P- value, and a conclusion (reject or fail to reject).

A study compared the relative frequency of mental health problems of various types among U.S. Army members before deployment to Iraq, U.S. Army members after serving in Iraq, U.S. Army members after serving in Afghanistan, and U.S. Marines after serving in Iraq. The study stated, "Potential differences in demographic factors among the four study groups were controlled for in our analysis with the use of logistic regression." For this study, identify the response variable, the primary explanatory variable, and likely control variables.

Response: Mental health problems; explanatory: deployment (yes/no); control: branch of military, country of service

Response: Deployment (yes/no); explanatory: before/after deployment; control: branch of military, country of service, mental health

Response: Four study groups; explanatory: mental health; control: branch of military, country of service

Response: Mental health problems (yes/no); explanatory: before/after deployment; control: branch of military, country of service

In a test of the Weight Watchers weight loss program, weights of 42 subjects are recorded before and after the program such that the x-value is an individual's weight at the start of the program and the y-value is the same person's weight after one year on the program. The mean of the starting weights was 192.7 pounds. The mean of the weights after one year was 178.2 pounds. The regression equation was found to be yˆ=.802x+30.27ŷ=.802x+30.27. The critical r-values at 5% significance are: r=±0.304.

Assume that before/after weights result in a correlation coefficient of r=0.876.r=0.876. Is there correlation at the 5% significance level?

• Yes
• No

If someone had a starting weight of 200 pounds, what would be your best prediction for their ending weight? ____________ pounds.

Explain your reasoning.

Assume that before/after weights result in a correlation coefficient of r=0.087. Is there correlation at the 5% significance level?

• Yes
• No

If someone had a starting weight of 200 pounds, what would be your best prediction for their ending weight? _____________ pounds.

Explain your reasoning.

Record the following transactions for Novak Corp. in the general journal. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)