a manager faces a problem of increasing cost in his company. This problem is specific to him. It might so happen that similar problems are faced by others in the industry. He tries to find the reasons for the rising cost and falling profit that might involve different areas of research. which types of research or mode will be necessary to solve the problem?

Q1. Does declining economic activity such as consumption of private and public has been weak, house hold face in squeezing real income through falling employment and higher tax will affect the long term interest rate of the country? if they do, explain with using the graph(aggregate demand or supply or other economic graph).

Total has discovered a potential 1 billion barrels of “wet” gas off the coast of South Africa. The gas could be used as petrol or perhaps even converted into electricity, according to one expert. The Brulpadda gas find should mean more tax revenue and a stronger rand. How Will It Affect South Africans Firstly, government will earn more tax. Total and its partners will pay the regular 28% corporate tax on all taxable income from Brulpadda. According to the most optimistic estimates, the Brulpadda find could yield $1 trillion (R14.4 trillion) for Total and its partners, which would mean a massive tax windfall for South Africa. Certain Businesses and Skills Will Be in Demand The Brulpadda find could have a massive boost to all kinds of businesses in South Africa. Companies providing helicopters, marine services, catering supplies and transport to get supplies to the site would be required. Adapted from “Everything You Need to Know about South Africa’s Massive Gas Find” by Helena Wasserman, Business Insider SA

4.1 Assuming that government budget is at zero balance discuss the implication of the gas find in terms of government’s fiscal policy for the following economic factors:

4.1.1 Collection of revenue through taxation on personal income

4.1.2 Government spending on the provision of goods and services

4.2 Explain, with the aid of a diagram, the economic impact on cost-push inflation and aggregate output.

4.3 Discuss the main type of unemployment that would be reduced.

Eppich Corporation has provided the following data for the most recent month:

Raw materials, beginning balance$16,000

Work in process, beginning balance$31,000

Finished Goods, beginning balance$49,000

Transactions:

(1) Raw materials purchases $80,000

(2)Raw materials used in production (all direct materials) $77,000

3) Direct labor $51,000

(4) Manufacturing overhead costs incurred $88,000

(5) Manufacturing overhead applied $71,000

(6) Cost of units completed and transferred from Work in Process to Finished Goods $190,000

(7) Any over applied or under applied manufacturing overhead is closed to Cost of Goods Sold?

(8) Finished goods are sold $219,000

Required: Prepare journal entries for the transactions above (For simplicity, assume all costs are paid in cash).

Post entries to the following T-accounts by recording the beginning balances and each of the transactions listed above. Cash, Raw materials, Work-in-Process, Finished Goods, Manufacturing Overhead, Cost of goods sold.Determine the ending balances for all non-cash accounts.

For Questions 7 – 11, assume that no banks wish to hold excess reserves and that people prefer to hold all of their money in checkable deposits. Additionally, assume that banks are holding zero excess reserves when the Fed first undertakes any of the described actions.For ease in submitting answers you may use "+" in place of "increase," "-" in place of "decrease," and "0" in place of "stays the same." (Don't use the quotation marks.)

9. Suppose the current equilibrium interest rate is 6% while the reserve ratio is 10%. If the Fed sells $10 worth of Treasury bills to commercial banks, the money supply will (increase, decrease) __decrease_ to $ ________, and the interest rate will (increase, decrease) __increase___ to ________ %. Investment spending will (increase, decrease) __decrease____ to $ ________.

10. Now suppose the interest rate is currently 9%, the reserve ratio is 25%, and the Fed would like to adjust interest rates enough to increase Investment spending (I) by $40. The Fed would need to (buy, sell) __buy__ T bills in the amount of $ ________ which would (increase, decrease) the money supply by __200_ and (increase, decrease) interest rates by __6__%.

11. The equilibrium interest rate is currently 6%, while the reserve ratio is 10%. The banking system currently has required reserves of $20 and zero excess reserves. The Fed decides to increase the reserve ratio to 20%. The money supply will (increase, decrease) __decrease____ by $ ________ as a result of this change, causing the interest rate to (increase, decrease) to ___increase__% and investment spending to (increase, decrease) __decrease___ to $ ________.

Problem 9-20 Activity and Spending Variances [LO9-1, LO9-2, LO9-3]

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March.

ou have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March.

Required:

1. Prepare a flexible budget for March.

2. Prepare a report showing the spending variances for March.

Prepare a report showing the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

The diameters of a batch of ball bearings are known to follow a normal distribution with a mean 4.0 in and a standard deviation of 0.15 in. If a ball bearing is chosen randomly, find the probability of realizing the following event: (a) a diameter between 3.8 in and 4.3 in, (b) a diameter smaller than 3 9 in, (c) a diameter larger than 4.2 in.

0.1 0.4 3.1 1.9 2.0 5.1 1.3 3.6 3.6 2.7 1.9 7.5 3.8 2.3 9.2 3.0 3.3 1.8 4.9 6.0 4.1 1.8 5.7 6.7 2.4 3.3 8.6

What is the margin of error for the population mean at 90% confidence level for the above information?

(Bonds) A bond with a $1,000 par, 6 years to maturity, a coupon rate of 6%, and annual payments has a yield to maturity of 3.8%. What will be the percentage change in the bond price if the yield changes instantaneously to 5.3%? (If your answer is, e.g., -1.123%, enter it as -1.123. If the sign of the price change is incorrect, no credit will be given.)