Formulate an Economic Dispatch Problem with cost function: Fi=fi (PG i) i=1, 2, 3, LEN Total cost o F = Ź fi . N→ Total number of units on ED. The system constraints are: N PGi = PD+PL+ PL Po System load (independent of Variable "Pai") PL - Losses in the network which are a function of the independent variable 'PGi' PLS A constant loss of This is a constant system-wide loss. This loss is NOT a function of the independent variable "Pai Formulate a Lagrangian Solution of the problem. Show all steps for calculating the Lagrangian number (delivered incremental cost) based on your problem formulation. Again, show all steps including the Lagrangian solution technique used. Specify "Penalty factor in terms of DPL "Incremental transmission loss" factor
In: Economics
Vanguard Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | |||
| Assembly | $ | 1,078,920 | 74,000 | machine-hours | |
| Processing orders | $ | 76,560 | 1,650 | orders | |
| Inspection | $ | 119,616 | 1,680 | inspection-hours | |
The company makes 400 units of product O37W a year, requiring a total of 630 machine-hours, 50 orders, and 10 inspection-hours per year. The product's direct materials cost is $36.92 per unit and its direct labor cost is $30.06 per unit.
According to the activity-based costing system, the average cost of product O37W is closest to:
$97.52 per unit.
$91.72 per unit.
$95.74 per unit.
$66.98 per unit.
In: Accounting
Feldpausch Corporation has provided the following data from its activity-based costing system:
| Activity Cost Pool | Total Cost | Total Activity | ||||||||
| Assembly | $ | 1,471,965 | 60,500 | machine-hours | ||||||
| Processing orders | $ | 54,224 | 1,850 | orders | ||||||
| Inspection | $ | 152,154 | 2,140 | inspection-hours | ||||||
The company makes 1,230 units of product W26B a year, requiring a total of 1,380 machine-hours, 103 orders, and 39 inspection-hours per year. The product's direct materials cost is $52.21 per unit and its direct labor cost is $17.15 per unit. The product sells for $112.50 per unit.
According to the activity-based costing system, the product margin for product W26B is: (Round your intermediate calculations and final answers to 2 decimal places.)
$13,694.97
$53,062.20
$16,467.87
$16,713.90
In: Accounting
Problem IV: A perfectly competitive firm has a total cost function given by T C(Q) = 2Q3 − 20Q2 + 100Q.
a) What will be the optimal quantity produced by the firm if the market price is P = 300? What will be the profit? (Q=10, Profit=2000)
b) How about if the market price is P = 45? What will be the optimal quantity and profit in this case? (Q=0, Profit=0)
c) Find the break even point and the shut down point.
d) Assuming the initial market price of $300, what will be the optimal quantity and profit if a new fixed cost of $1000 has to be incurred by the firm? How about if this FC=$3000?
In: Economics
Petitte Corporation has provided the following data from its activity-based costing system:
|
Activity Cost Pool |
Total cost |
Total activity |
||
|
Assembly |
$612,560 |
31,000 |
machine hours |
|
|
Processing orders |
$35,451 |
1,300 |
orders |
|
|
Inspection |
$100,217 |
1,690 |
Inspection hours |
|
Data concerning the company's product K54A appear below:
|
Selling price |
$150 per unit |
|
Annual production and sales |
410 units |
|
Annual machine hours |
700 machine hours |
|
Annual number of orders |
30 orders |
|
Annual inspection hours |
30 orders |
|
Direct materials cost |
$45.67 per unit |
|
Direct labor cost |
$31.24 per unit |
1. Compute the activity rates for each activity cost pool.
2. Compute the overhead cost charged to Product K54A.
3. Compute the unit cost of product K54A.
In: Accounting
Cost Formulas, Single and Multiple Activity Drivers, Coefficient of Correlation
Kimball Company has developed the following cost formulas:
Material usage: Ym = $84X;r = 0.94
Labor usage (direct): Yl = $22X;r = 0.97
Overhead activity: Yo = $356,000 + $102X; r = 0.72
Selling activity: Ys = $53,000 + $14X; r = 0.91
where
X = Direct labor hours
The company has a policy of producing on demand and keeps very little, if any, finished goods inventory (thus, units produced equals units sold). Each unit uses one direct labor hour for production.
The president of Kimball Company has recently implemented a policy that any special orders will be accepted if they cover the costs that the orders cause. This policy was implemented because Kimball's industry is in a recession and the company is producing well below capacity (and expects to continue doing so for the coming year). The president is willing to accept orders that minimally cover their variable costs so that the company can keep its employees and avoid layoffs. Also, any orders above variable costs will increase overall profitability of the company.
Required:
1. Compute the total unit variable cost. Suppose that Kimball has an opportunity to accept an order for 20,000 units at $232 per unit.
In: Accounting
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 794,300 47,000 machine-hours Processing orders $ 61,280 1,600 orders Inspection $ 109,681 1,430 inspection-hours Data concerning the company's product Q79Y appear below: Annual unit production and sales 500 Annual machine-hours 1,130 Annual number of orders 115 Annual inspection hours 20 Direct materials cost $ 42.00 per unit Direct labor cost $ 41.31 per unit According to the activity-based costing system, the average cost of product Q79Y is closest to:
In: Accounting
| MOCKTOE INC. | ||||
| Flexible Budget | ||||
| Cost Formula (per toaster) | Activity (toasters) | |||
| 110000 | 120000 | 130000 | ||
| Variable costs: | ||||
| Total variable costs | $0.00 | $0 | $0 | $0 |
| Fixed costs: | ||||
| Total fixed costs | $0 | $0 | $0 | |
| Total costs | $0 | $0 | $0 | |
|
ToasToe Inc. (TI) is a manufacturer of heating elements for toaster overs. To improve control over operations, the president wants to install a flexible budgeting system, rather than the single master budget being used at present. The following data are available for expected costs for production. The relevant range of production levels for fixed overhrad costs is 80,000 to 180,000 units: |
| Variable costs: | |||
| Manufacturing | $ | 8.50/unit | |
| Administrative | $ | 5.50/unit | |
| Selling | $ | 3.50/unit | |
| Fixed costs: | |||
| Manufacturing | $ | 170,000 | |
| Administrative | $ | 105,000 | |
| Required: |
|
Prepare a flexible budget for each of the three possible sales levels: 110,000, 120,000, and 130,000 units. Each toaster oven is expected to sell for $20.00. |
In: Accounting
A firm has the following production function Y=K0.25L0.25. Total cost (TC) is given by TC=wLL+wKK+ZC, where wLand wK are prices of the two inputs L and K, and ZC are costs that the firm has to pay regardless of production volume as long as it is operative.
a)Derive total cost as a function of output C(Y). Derive
marginal cost MC and average cost AC.
b)Assume that the firm is one of many identical ones operating on a perfectly competitive market that is in long run equilibrium. ZC is 1800 and wL and wK are both equal to1. What are the price of the product and how much does each of the firms produce?
c)The same economy is inhabited by two different types of consumers. Type A consumers have the utility function UA=yx, and Type B consumers UB=[4ln(yx)]3. y denotes how much the individual consumes of the good produced by the firms in a) and b) above and x represents consumption of another good. Both two types of consumers have an Income of I. State the demand function for good y for the two types of consumers.
d)
In: Economics
A firm has the following production function Y=K0.25L0.25. Total cost (TC) is given by TC=wLL+wKK+ZC, where wL and wK are prices of the two inputs L and K, and ZC are costs that the firm has to pay regardless of production volume as long as it is operative.
In: Economics