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 | 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 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 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.
In: Statistics and Probability
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 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
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In: Accounting
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 $30,000 every six months (semi-annual payment) forever. The only caveat is that the first payments is given 5.5 years from now. You are not that enthusiastic about waiting that long. In fact, you really want to simply receive 13 quarterly payments with the first payment starting one quarter from now. If the APR is 12% compounded monthly, what is the quarterly payment amount you want to receive instead? For your answer round to the nearest dollar, do not enter the dollar ($) 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 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.
In: Economics