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 $2.80 to determine the bid price. Since our average cost is only $2.585 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.

Complete this question by entering your answers in the tabs below.

• Req 1

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

Req 2

Compute the activity rates for the activity cost pools.

Req 3A to 3C

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. (Round the "Average Cost per thousand square feet" to 2 decimal places.)

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.

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The variable costing concept removes fixed costs, which are uncontrollable, from the decision-making process (see variable costing income statement). This forces management to focus on the variable factors of production, sales revenue and variable costs. I remember learning this concept in economics at LBCC, where a company should shut down if a product’s price falls below variable cost and just incur fixed costs.

Have you ever heard the saying “The company loses $1.00 on every unit sold, but we are confident the losses can be made up on volume.” Really?

In theory, companies should not operate with a negative contribution margin (sales revenue-variable costs), but my guess is that some do especially in this economic environment?

Do you think companies actually operate (or produce products) with a negative contribution margin?

Anneka, from Stockton, works at a law firm in San Francisco as an associate attorney. Each year the lawyers put on a college basketball challenge whereby participants pay $100 to enter the NCAA basketball pool. The game requires that contestants pick the projected winners of basketball games throughout the NCAA basketball tournament, held each March. In other words, if Cal plays Kentucky, they pick one of the teams (hopefully Cal) and they get points for each correct pick. The winner of the contest is the person with the most points. The winner also gets most of the money and bragging rights. Some of the entry fee ($50) is held back from each entry to pay for a dinner that all of the contestants are invited to attend.  

In 2018, the tournament was organized by Jim Slick - another attorney in the firm. Mr. Slick lives in Oakland. 100 people participate in the pool, meaning they have $5000 for the winner and $5000 for dinner. Included in the dinner is a secondary contest that is not announced. The person who sits in the correct chair (with a secret envelope attached to the bottom) wins a 65 inch flat screen T.V.  

Anneka is a basketball junkie. She follows college sports all year. As a result, she has a great series of basketball picks and wins the pool At dinner, she also sits in the chair with the envelope. She does not know about the TV until the everyone is told to look under their chairs.  

After dinner, she goes to collect her winnings and the TV, but Slick is already gone from dinner. She goes to his office at work the next Monday, only to discover that he's left the firm. She calls his home number and he tells her that the overhead for the tournament and dinner actually left them with no money to pay the winners. He also says, he liked the T.V. so much that he decided to keep it.

Law suits are filed. Who should sue and where should suit be filed? What are the grounds for the suits and the potential damages available? What defenses may be raised? Who will win? Identify the issues and explain all sides.

a) The following table shows, for a group of 12 production workers, the number of months of working experience on a particular process each of them had, and the number of defective items that they produced during a given week.

You are required to:

I) calculate the coefficient of linear correlation for the data, and comment on the result.                                                                                                          [8 marks]

ii) Determine the coefficient of determination for the data, and explain its implication.

                                                                                                                    [4 marks]

iii) Determine the equation of the least squares regression line, and comments on the values of the coefficient and the constant.                                           [8 marks]

b) The quality controller of a soft drinks producing company estimates the probability of rejects as 10% on a monthly basis. If she randomly selects a sample of 10 packets find the probability that:

I) All are non – defective                                                                   [2 marks]

ii) Exactly 2 are defective                                                                  [2 marks]

iii) At most 8 are defective                                                                 [3 marks]

iv) At least 2 are defective                                                                 [3 marks]

v) Between 2 and 4 (inclusive) are defective.                                    [4 marks]

b) The quality controller of a soft drinks producing company estimates the probability of rejects as 10% on a monthly basis. If she randomly selects a sample of 10 packets find the probability that:

I) All are non – defective                                                                   [2 marks]

ii) Exactly 2 are defective                                                                  [2 marks]

iii) At most 8 are defective                                                                 [3 marks]

iv) At least 2 are defective                                                                 [3 marks]

v) Between 2 and 4 (inclusive) are defective.                                    

Flights American Airlines Flight 201 from New York's JFK airport to LAX airport in Los Angeles uses a Boeing 767-200 with 168 seats available for passengers. Because some people with reservations don't show up, American can overbook by accepting more than 168 reservations. If the flight is not overbooked, the airline will lose revenue due to empty seats, but if too many seats are sold and some passengers are denied seats, the airline loses money from the compensation that must be given to the bumped passengers. Assume that there is a 0.0995 probability that a passenger with a reserva-tion will not show up for the flight. Also assume that the airline accepts 182 reservations for the 168 seats that are avail-able. Find the probability that when 182 reservations are accepted for American Airlines Flight 201, there are more pas-sengers showing up than there are seats available. Table A-1 (the Binomial Probabilities table) cannot be used and calcu-lations with the binomial probability formula would be extremely time-consuming and tedious. The best approach is to use statistics software. (See Section 5-3 in the textbook for instructions describing the use of StatCrunch, Excel, STATDISK) Is the proba-bility of overbooking small enough so that it does not happen very often, or does it seem too high so that changes must be made to make it lower? Now use trial and error to find the maximum number of reservations that could be accepted so that the probability of having more passengers than seats is 0.05 or less. Now use trial and error by changing the “n” to determine the maximum number of tickets that you can “safely” sell, but still make as much profit as possible. Give a detailed account of the procedure you used to arrive at your conclusion. The maximum number of tickets I can “safe-ly” sell is?

4. Consider a mixing tank with a volume of 50 gallons which is initially filled with 10 gallons of fresh water. Suppose there is an inflow pipe which pumps in a 1 lb/gallon brine (salt/water) mixture at a rate of 4 gallons per minute, and there is an outflow pipe which removes the mixture from the tank at a rate of 2 gallons per minute.

1. (a) Use the given information to derive an initial value problem which models the amount of salt in the tank as a function of time.

2. (b) Find the solution of the initial value problem.

3. (c) How much salt in the tank when the tank is full?

After ovulation, ___1___

acts on the remaining follicle cells to promote the development of the ___ 2___ ,

which produces estrogen and large amounts of ____3____ ,

which then causes the endometirum to become ____4____

in preparation for ____5____

should fertilization of the ovum occur.

If the ovum is not fertilized the corpus luteum ____ 6____

resulting in a drop of estrogen and progesterone levels.

The endometrium then sloughs off in the ____7____ .

The drop in estrogen and progesterone removes the ____ 8_____

and the GnRH is produced by the _____9____

and the cycle beings again.

Please fill in the blanks with

hypothalamus

negative feedback imbibition

menstruations flow

degenerates

Progastrin

lH

nutritive and receptive

corpus luteum

implantation

The undrained strength of a clay is 1.2 kips/ft2 , the water table in 4 ft below the ground surface, the total unit weight of the clay is 118 lb/ft3 , and a round shallow foundations with a diameter of 4.25 ft is placed at a depth of 10 ft supports a column load. a. Use a factor of safety of 2.8 and compute the safe column load on the foundation. b. An excavation near the drilled shaft removes the soil down to the water table. What is the effect on the factor of safety? (Hint consider what the physical meaning of the components in the Hansen equation. Which component is impacted by the excavation?)

Match each DNA repair mechanism with its description.

photoactive repair

base excision repair

nucleotide excision repair

mismatch repair  

SOS system

nonhomologous end-joining