Questions
The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 8,400 6,500 7,200 8,100

Each unit requires 0.65 direct labor-hours, and direct laborers are paid $12.00 per hour.

Required:

1. Prepare the company’s direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

2. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 5,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 5,000 hours anyway. Any hours worked in excess of 5,000 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

In: Accounting

Year Quarter Sales 1 1 10 1 2 31 1 3 43 1 4 16 2...

Year Quarter Sales
1 1 10
1 2 31
1 3 43
1 4 16
2 1 11
2 2 33
2 3 45
2 4 17
3 1 13
3 2 34
3 3 48
3 4 19
4 1 15
4 2 37
4 3 51
4 4 21

a. Construct a time series plot. What type of pattern exists in the data?

b. Use the following dummy variables to develop an estimated regression equation to account for seasonal effects and any linear trend in the data: Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. Compute the forecast of bike sales for quarter 1 of next year.

c. Compute the forecast of bike sales for quarter 2 of next year.

d. Compute the forecast of bike sales for quarter 3 of next year.

e. Compute the forecast of bike sales for quarter 4 of next year.   

In: Statistics and Probability

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 9,200 7,000 7,600 9,500 Each unit requires 0.35 direct labor-hours, and direct laborers are paid $10.00 per hour. Required: 1. Prepare the company’s direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 3,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 3,000 hours anyway. Any hours worked in excess of 3,000 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

In: Accounting

Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 4 6...

Consider the following time series data.

Quarter Year 1 Year 2 Year 3

1 4 6 7

2 2 3 6

3 3 5 6

4 5 7 8

1.plot with line dot chart.

2.What type of pattern exists in the data?

a.Upward Trend Patter,

b. Downward Trend Pattern

c. Horizontal Pattern With Seasonality.

3.Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

a. Value = ( )  + ( ) Qtr1 + ( )  Qtr2 + ( ) Qtr3 +  t

4.Compute the quarterly forecasts for next year. If required, round your answers to two decimal places.

  1. Quarter 1 forecast =
  2. Quarter 2 forecast =
  3. Quarter 3 forecast =
  4. Quarter 4 forecast =

In: Statistics and Probability

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 10,800 8,500 7,100 11,200

Each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour.

Required:

1. Prepare the company’s direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

2. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. Any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

In: Accounting

Income Statements and Firm Performance: Variable and Absorption Costing Jellison Company had the following operating data...

Income Statements and Firm Performance: Variable and Absorption Costing

Jellison Company had the following operating data for its first two years of operations:

Variable costs per unit:
  Direct materials 4.00
  Direct labor $2.80
  Variable overhead 1.40
Fixed costs per year:
  Overhead 180,000
  Selling and administrative 70,500

   Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was $12. Jellison uses an actual costing system for product costing.

Required:

1. Prepare income statements for both years using absorption costing. If an amount is zero, enter "0".

Jellison Company
Absorption-Costing Income Statement
For Years 1 and 2
Year 1 Year 2
Sales $ $
Less: Cost of goods sold
Gross profit $ $
Less: Fixed selling and administrative expenses
Operating income $ $
Cost of goods sold:
Beginning inventory $ $
Cost of goods manufactured
Goods available for sale $ $
Less: Ending inventory
Cost of goods sold $ $

2. Prepare income statements for both years using variable costing. If an amount is zero, enter "0".

Jellison Company
Variable-Costing Income Statement
For Years 1 and 2
Year 1 Year 2
Sales $ $
Less: Variable cost of goods sold
Contribution margin $ $
Less:
Fixed overhead
Fixed selling and administrative expenses
Operating income $ $
Variable cost of goods sold:
Beginning inventory $ $
Variable cost of goods manufactured
Goods available for sale $ $
Less: Ending inventory
Cost of goods sold $ $

In: Accounting

Problem 22-03A a-b, c1, d Hill Industries had sales in 2019 of $7,520,000 and gross profit...

Problem 22-03A a-b, c1, d

Hill Industries had sales in 2019 of $7,520,000 and gross profit of $1,128,000. Management is considering two alternative budget plans to increase its gross profit in 2020.

Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 10% from its 2019 level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would increase by 101,000 units.

At the end of 2019, Hill has 44,000 units of inventory on hand. If Plan A is accepted, the 2020 ending inventory should be equal to 5% of the 2020 sales. If Plan B is accepted, the ending inventory should be equal to 72,000 units. Each unit produced will cost $1.80 in direct labor, $1.40 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2020 should be $1,941,890.

Prepare a sales budget for 2020 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.)
HILL INDUSTRIES
Sales Budget

For the Year Ending December 31, 2020December 31, 2020For the Quarter Ending December 31, 2020

Plan A

Plan B

Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price

Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price

$ $

Direct LaborDirect MaterialsExpected Unit SalesProduction UnitsTotal SalesUnit Selling Price

$ $
Prepare a production budget for 2020 under each plan.
HILL INDUSTRIES
Production Budget

For the Quarter Ending December 31, 2020For the Year Ending December 31, 2020December 31, 2020

Plan A

Plan B

Required Production UnitsDesired Ending Finished Goods UnitsTotal Materials RequiredTotal Pounds Needed for ProductionTotal Required UnitsDirect Materials PurchasesDesired Ending Direct MaterialsBeginning Direct MaterialsDirect Materials per UnitExpected Unit SalesBeginning Finished Goods Units

AddLess

:

Beginning Direct MaterialsTotal Pounds Needed for ProductionBeginning Finished Goods UnitsDesired Ending Finished Goods UnitsExpected Unit SalesRequired Production UnitsDesired Ending Direct MaterialsDirect Materials per UnitDirect Materials PurchasesTotal Materials RequiredTotal Required Units

Total Pounds Needed for ProductionExpected Unit SalesRequired Production UnitsTotal Materials RequiredTotal Required UnitsBeginning Direct MaterialsDirect Materials per UnitBeginning Finished Goods UnitsDesired Ending Direct MaterialsDesired Ending Finished Goods UnitsDirect Materials Purchases

AddLess

:

Direct Materials per UnitTotal Pounds Needed for ProductionTotal Required UnitsBeginning Direct MaterialsDesired Ending Finished Goods UnitsDirect Materials PurchasesBeginning Finished Goods UnitsDesired Ending Direct MaterialsTotal Materials RequiredExpected Unit SalesRequired Production Units

Direct Materials PurchasesTotal Pounds Needed for ProductionTotal Required UnitsBeginning Direct MaterialsTotal Materials RequiredDesired Ending Finished Goods UnitsBeginning Finished Goods UnitsExpected Unit SalesDesired Ending Direct MaterialsDirect Materials per UnitRequired Production Units

Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.)

Plan A

Plan B

Production cost per unit $ $
Compute the gross profit under each plan.

Plan A

Plan B

Gross Profit $ $

Which plan should be accepted?

Plan APlan B

should be accepted.

In: Accounting

Problem IX A,B,C: Consider the following valuations table for five consumers willing to purchase two differently...

Problem IX A,B,C: Consider the following valuations table for five consumers willing to purchase two differently colored T-shirts:

CONSUMER VALUATION FOR BLUE T-SHIRTS VALUATION FOR PINK T-SHIRTS
John 50 15
Bob 40 30
Tim 35 35
Jennifer 25 45
Maria 10 50

a) Assuming no production costs, what is the most profitable way to price these two goods independently? What are the prices and resulting profit?

b) Assuming no production costs, what is the most profitable way to price these two goods using bundling? Analyze both pure and mixed bundling, state the prices and resulting profits and choose the best option.

c) Assuming costs of production of $27 per t-shirt (regardless of color), what is the most profitable bundling pricing strategy? Specify whether it’s better to use mixed or pure bundling, then record the optimal prices and resulting profit.

Please answer this question in complete detail as I don't understand this subject too well. Thank you

In: Economics

You have just won a very special prize, a "consol" bond that pays $30,000 every six...

You have just won a very special prize, a "consol" bond that pays $30,000 every six months (semi-annual payment) forever. The only caveat is that the first payments is given 5.5 years from now. You are not that enthusiastic about waiting that long. In fact, you really want to simply receive 13 quarterly payments with the first payment starting one quarter from now. If the APR is 12% compounded monthly, what is the quarterly payment amount you want to receive instead? For your answer round to the nearest dollar, do not enter the dollar ($) sign, and use commas for the thousands. For example, if you obtained $1,240.75 then enter 1,241

solve step by step

In: Finance

Assume the economy in the United States has a break-even point of $4,500 billion. Businesses plan...

Assume the economy in the United States has a break-even point of $4,500 billion. Businesses plan to Invest $78 billion. Government purchases $864 billion worth of goods and services. Exports are $458 billion. Imports are $432 billion and Net Exports is $26 billion. For every one dollar change in disposable income, households spend 75 cents. The labor force in this economy is 154,432,000. The population is 265,752,000. 9,765,000 people are not working but actively seeking work.

  1. By how much should Government increase (or reduce) spending to close the GDP Gap?
  2. EXPLAIN what could happen to make the policy ineffective? (Choose one complication from the Problems, Criticisms, and Complications of Implementing Fiscal Policy)

In: Economics