Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $1,368,000 of total manufacturing overhead for an estimated activity level of 72,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.

3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $592,000 of total manufacturing overhead for an estimated activity level of 74,000 machine-hours. During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse.

The company’s cost records revealed the following actual cost and operating data for the year:

Machine-hours 67,000

Manufacturing overhead cost $ 551,000

Inventories at year-end: Raw materials $ 13,000

Work in process (includes overhead applied of $37,520) $ 139,300

Finished goods (includes overhead applied of $101,840) $ 378,100

Cost of goods sold (includes overhead applied of $396,640) $ 1,472,600

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.

3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $880,000 of total manufacturing overhead for an estimated activity level of 88,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.

3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $612,000 of total manufacturing overhead for an estimated activity level of 68,000 machine-hours.

During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Required:

1. Compute the underapplied or overapplied overhead.

2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal entry.

3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry.

4. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold?

Catastrophe Bond

A) What is the origin of catastrophe bonds?

B) How has the issuance of catastrophe bonds changed since 2010? What is driving that

change?

C) What activities does the SPV perform for a catastrophe bond?

Use reliable online resources to research Dodd–Frank Wall Street Reform and Consumer Protection Act, 2010 write a comment about each provision of this comprehensive Financial Reform that relates to real estate activities.

What are some current trends in the labor market?What are the current unemployment rate trends?Describe the changes in percentage terms and relate the changes in employment to the growth of the U.S. economy between the two years of 2010 and 2017.

• Between 2000 - 2010:
• What are the main goods and services the United States traded internationally?
• What trade barriers were in place during that decade?
• What are two pros and two cons of the trade barriers used?

CASE STUDY: WEARABLE TECHNOLOGY COMPETITION PROJECT

Case Study Information

This year, a symposium of wearable technology manufacturers are sponsoring a contest. The contest is open to anyone who wants to participate. Because of new technological advances in wearable technology, manufacturers are looking for new and innovative product and software solutions.

Sarah is a senior student in the engineering technology program at Sheridan, and she is very interested in wearable technology production and supporting applications. She is very interested in everything related to the wearable technology industry, from fitness devices to gear to assist in medical diagnosis. She is determined to participate in this contest and win it. She applied for and was awarded a grant for $7,000 through Sheridan College to work on this wearable technology project. She can use the money to pay for any special hardware or software that Sheridan could also use after the contest.

The college has a wrist band that can be used to monitor and record various physiological functions of the patient wearing it. Sarah has recruited a doctor who specializes in sleeping disorders to work with the team to track patient’s vitals as they sleep. The software to interpret the data stream still has to be developed. She could also award small stipends ($500 per person) to people who help on the project. Sarah knows that she will have to convince several people to donate their time and energy to help her make a great wearable technology in time for the contest, just 10 months away.

The first-prize winner in each category received $250,000 and the opportunity to participate in a major wearable technology contest. There were also prizes of $75,000 and $25,000 for second and third place. Sarah really wants to use her computer and project management skills in the wearable technology industry, so even if she didn’t win a prize, she wants to gain valuable experience to help find a job after graduation.

Part 1: Project Integration Management

Tasks:

1. Prepare a project charter for the Wearable Technology Competition Project. (pp210-211) Assume the project will take 10 months to complete (use any year you wish, starting September 1st with final submission due July 1st) and the total budget is $7,000 plus unlimited volunteer hours. Sarah estimates that she will spend about 20 hours per week on this project and serve as the lead technical person. She’s asked you to be the project manager, and she’ll work closely with you. Use the project charter template and examples of project charters in Chapters 3 and 4 as guidelines. Assume that the project sponsor is Sarah. Include the main roles for other major stakeholders (doctor, students, faculty, and staff at Sarah’s university willing to volunteer their time).