Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost

On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs:

During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:

Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.

Required:

1. Calculate the predetermined overhead rate based on direct labor cost.
% of direct labor cost.

2. Calculate the ending balance for each job as of August 31.

3. Calculate the ending balance of Work in Process as of August 31.
$

4. Calculate the cost of goods sold for August.
$

5. Assuming that Cairle prices its jobs at cost plus 25 percent, calculate Cairle’s sales revenue for August.
$

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost

On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs:

During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:

Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.

Required:

1. Calculate the predetermined overhead rate based on direct labor cost.
% of direct labor cost.

2. Calculate the ending balance for each job as of August 31.

3. Calculate the ending balance of Work in Process as of August 31.
$

4. Calculate the cost of goods sold for August.
$

5. Assuming that Cairle prices its jobs at cost plus 10 percent, calculate Cairle’s sales revenue for August.
$

Suppose there are only 2 goods produced in world: Traded (T) and Non Traded (NT) in 2ountries A and B. The following table shows the information on the production and price of T and NT in A and B.

1. Calculate the PPP exchange rate between the two currencies where you are expressing the exchange rate as one unit of currency A in terms of currency B.
2. What is the ratio of GDP per capita in A and B using the PPP exchange rate?
3. Now suppose the Non Traded item also gets traded between the countries. The trade pattern is such that 1 unit of T is sold by Country A to obtain 2 units of NT from country B. Calculate the Nominal exchange rate expressing 1 unit of Currency A in terms of currency B. (HINT: find the price of 1T in terms of Country A’s currency and price of 2 NT in terms of Country B’s currency. Given the suggested trade pattern find the nominal exchange rate).
4. Given your answer in part c, calculate the ratio of GDP per capita between country A and B. Comparing your answers obtained for parts b. and d. explain in 4-5 sentences what role does the existence of non traded sector play in comparing the GDP ratios.

Answer Question 1, each part of the question has a corresponding point value seen in ()

1A company that manufactures military hats reports that the mean head circumference of all men in the military is 22.05 inches with a standard deviation of 0.68 inches. Suppose the distribution of head circumference is approximately normal, and one man in the military is selected at random.

a.Find the probability that the man’s head circumference is less than 21 inches (2 pts)

b.Find the probability that the man’s head circumference is between 22 and 23 inches (5 pts)

c.If a man in the military has a head circumference greater than 24 inches, a surcharge is applied to the cost of the hat. What is the probability that a surcharge will be applied? (3pts)

d.Find a symmetric interval about the mean such that P= 0.9500 of all measurements lie in this interval (7 pts).

1B The NHANES report, 2005-2006, What We Eat in America, studies the nutrient intakes from food for individuals over 2 years old. For women age 20 and over, the mean amount of selenium consumed from food per day was 92.6 μg. Assume the standard deviation is 18.4 μg and the amount of selenium consumed per day is normally distributed. Suppose a woman over age 20 is randomly selected.

a.Find the probability that her daily intake of selenium from food will be at most 100 μg. (2pts)

b.Find the probability that her daily intake of selenium from food will be between 60 and 75 μg. (5pts).

c.Suppose the FDA has established 90 μg of selenium from food as the minimum daily intake. Find the probability that the woman randomly selected will meet this minimum. (3pts)

d.Find a valuexsuch that P= 0.7500of all women in this age group have a daily intake of selenium from food of at mostxgrams (2pts)

4. Suppose you are interested in the impact of minimum wages on employment. You collect the following data on two jurisdictions:

5. Consider the same data on minimum wages and employment from the previous question. You’re going to use this data to check whether the two jurisdictions had different trends in employment before the 2010-2015 period. In particular, imagine that the increase in the minimum wage in jurisdiction 1 happened between 2005 and 2010, not between 2010 and 2015. Continue to assume that there is no change in the minimum wage in jurisdiction 2. The “before and after” approach using the 2005 and 2010 data, with the imagined change in the minimum wage during this period, would show:

a) none of the listed options.

b) a negative relationship between the change in the minimum wage and the change in employment.

c) no relationship between the change in the minimum wage and the change in employment.

d) a positive relationship between the change in the minimum wage and the change in employment.

What types of quality measures might be used by a company to evaluate the overall effectiveness of systems and practices?

What types of analysis can managers perform to help them diagnose a company's financial condition?

How do benchmarking and certification help companies establish their overall effectiveness?

In the end analysis, what elements of budgeting and quality analysis might you recommend for a small, sole proprietorship versus a large, publicly coordinated corporation? Why?

1. Problem 8-77A
   Excise Taxes

   Reagan Gas provides gas utilities to a wide area of eastern Illinois. During May 2019 it billed 36,000 of its residential customers located in the town of Moline a total of $3,295,000 for electricity (this is considered revenue). In addition Reagan is required to collect the following taxes:

   1. State excise tax: A tax of $5.00 per customer plus 3% of billing used to fund the Illinois Energy Commission
   2. Federal excise tax: A tax of $0.45 per customer plus 0.2% of billing used to fund the Federal Energy Commission

   Required:

   1. Determine how much Reagan will bill these customers in total for the month of May 2019.
   $

   2. Prepare the entry to record the billing of these amounts. If an amount box does not require an entry, leave it blank.

   	(Record sale)

   3. Prepare the entry to record the collection of these amounts.

   	(Record collection of receivables)

   4. Prepare the entry to record the payment of the state excise taxes to the appropriate governmental unit.

   	(Record payment)

Check My Work

Finch Company produces a product that has a variable cost of $27 per unit and a sales price of $62 per unit. The company’s annual fixed costs total $780,000. It had net income of $340,000 in the previous year. In an effort to increase the company’s market share, management is considering lowering the selling price to $52 per unit.

Required

If Finch desires to maintain net income of $340,000 how many additional units must it sell to justify the price decline?

Assume that in addition to lowering its selling price to $52, Finch also desires to increase its net income by $80,000. Determine the number of units the company must sell to earn the desired income.

If Finch desires to maintain net income of $340,000 how many additional units must it sell to justify the price decline?

Assume that in addition to lowering its selling price to $52, Finch also desires to increase its net income by $80,000. Determine the number of units the company must sell to earn the desired income.

Required

27) A company manager wishes to test a union leader's claim that absences occur on the different week days with the same frequencies. Use a significance level of 0.01 to test the manager's claim. In a study of absences, 16 occurred on a Monday, 26 occurred on a Tuesday, 38 occurred on a Wednesday, 33 occurred on a Thursday, and 12 occurred on a Friday. Use the p-value method of hypothesis testing.