Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $4.20 to determine the bid price. Since our average cost is only $2.90 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.”

To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the activity-based costing system follow:

Required:

1. Perform the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system.

a. A routine 1,000-square-foot asbestos removal job.

b. A routine 2,000-square-foot asbestos removal job.

c. A nonroutine 2,000-square-foot asbestos removal job.

The following information is available for the employees of Webber Packing Company for the first week of January Year 1:

1. Kayla earns $25 per hour and 1½ times her regular rate for hours over 40 per week. Kayla worked 50 hours the first week in January. Kayla’s federal income tax withholding is equal to 8 percent of her gross pay. Webber pays medical insurance of $85 per week for Kayla and contributes $48 per week to a retirement plan for her.
2. Paula earns a weekly salary of $1,150. Paula’s federal income tax withholding is 19 percent of her gross pay. Webber pays medical insurance of $100 per week for Paula and contributes $100 per week to a retirement plan for her.
3. Vacation pay is accrued at the rate of 2 hours per week (based on the regular pay rate) for Kayla and $85 per week for Paula.

Assume the Social Security tax rate is 6.0 percent on the first $110,000 of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 5.4 percent and the federal unemployment tax rate is 0.6 percent of the first $7,000 of salary for each employee.

d. Prepare the journal entry to record the payroll tax expense and fringe benefit expense for Webber Packing Company for the week. (Round your answers to 2 decimal places.)
  

Journal entry worksheet

• Record the entry for payroll tax expense.

Note: Enter debits before credits.

4. Suppose that investment demand increases by $100. Assume that households have a marginal propensity to consume of 80 percent. Compute the first three rounds of multiplier effects as follows:

a) What are the first cycle changes in spending? Total cumulative change equals?

b) What are the second cycle changes in spending? Total cumulative change equals?

c) What are the third cycle changes in spending? Total cumulative change equals?  

5. If a balanced budget government passes a new fiscal stimulus or restraint, it can lead to a deficit or surplus. In order to avoid an imbalance, how much of a tax hike or tax cut would be required? In the event of an extra $50 Billion of government purchases, $30 Billion of transfer payments, what should be the offsetting tax package?

11. Use Exhibit 2. Which of the following statements is (are) correct?

(x) The opportunity cost of the first 50 tanks is 360 cars and the opportunity

cost of the first 360 cars is 10 tanks.

(y) If the economy chose to produce 80 tanks and 720 cars instead

of 50 tanks and 1,080 cars, then the opportunity cost of the 30

additional tanks is 360 cars.

(z) The opportunity cost of the first car is more than 0.025 tank, but

less than 0.029 tank and the opportunity cost of the first tank is

less than 7.8 cars but more than 6.5 cars.

A. (x), (y) and (z)

B. (x) and (y), only

C. (x) and (z), only

D. (y) and (z), only

E. (x) only

12. Given the information provided in Exhibit 2, which of the following statements is (are) correct?

(x) A reduction in unemployment would allow this economy to produce 750 cars and 80 tanks.

(y) A choice to produce 720 cars and 75 tanks would reflect an inefficient amount of production.

(z) If capital is idle and unemployment of labor exists then this economy would produce less than 360 cars if it was producing 100 tanks.

A. (x), (y) and (z) B. (x) and (y), only

C. (x) and (z), only D. (y) and (z), only

E. (z) only

Camille Sikorski was divorced in 2018. She currently owns and provides a home for her 15-year-old daughter. Kaly lived in Camille’s home for the entire year and Camille paid for all the costs of maintaining the home. Camille received a salary of $105,000 and contributed $6,000 of it to a qualified retirement account (a for AGI deduction). She also received $10,000 of alimony from her former husband (per divorce decree issued in 2018). Finally, Camille paid $15,000 of expenditures that qualified as itemized deductions. What is Camille’s taxable income? What would Camille’s taxable income be if she incurred $24,000 of itemized deductions instead of $15,000?

Mary was married to Scott and purchased a life insurance policy on Scott’s life. A few years later they divorced, and Mary remarried, but Scott’s life insurance policy remained active. Scott dies of a heart attack and Mary files a life insurance claim. Which of the following statements is (are) TRUE about Mary's life insurance claim? I. Mary’s claim can be denied if her current husband has a life insurance policy with her as a beneficiary. II. The claim will only be paid if she had children with Scott.

• A.

  I only.

• B.

  II only.

• C.

  both I and II.

• D.

  neither I or II.

Baby Ahmed, 3 days old, is brought to the clinic by his mother, who is a fruit seller. She lives with her husband, three older children and her mother-in-law in a small house with two rooms. Mother delivered at home and dresses the baby’s cord with cow dung. The umbilical stump is wet and the base looks reddened and is very offensive.

A. Outline five other signs and symptoms Ahmed may present. 

B. State five laboratory investigations to be carried out 

C. How will you manage Ahmed and the family whilst they are still in the hospital 

D. What education will you give to the family on infection prevention in the neonate 

A multigrada patient (G2P1, 26 weeks AOG came in for check-up.

This is her 3^rd visit since her pregnancy started. Her ultrasound revealed multi fetal gestation. She is a laundry woman and her husband is a carpenter. She is pale looking and is observed to be weak. She claimed that she has recently lost appetite because she is afraid to eat a lot because it might lead to a possible CS delivery.

2. Name at least 5 subjective and objective data, 5 goals and 5 interventions TOPIC IS RISK FOR LBW

Note : you can make up the subjective and objective

2. Prepare an NCP following the format:

Suppose Samantha dies this year with a gross estate of $15 million and no adjusted prior gifts. Calculate the amount of estate tax due (if any) under the following scenarios:

1. Samantha’s husband, Mark, is the sole beneficiary.
2. Mark receives $10 million from the estate and the remainder is donated to the American Red Cross.
3. Mark receives $10 million from the estate and their son, Luke, receives $5 million.
4. Mark receives $10 million and $5 million is placed in a trust. The trustee is required to pay income to Mark for her life and the remainder to their son, Luke.

Part B Submission Requirements:

• Submit with all calculations shown.