E20.13 (LO 1, 2, 4) (Computation of Actual Return, Gains and Losses, Corridor Test, and Pension Expense) Erickson Company sponsors a defi ned benefi t pension plan. The corporation’s actuary provides the following information about the plan. January 1, December 31, 2020 2020 Vested benefi t obligation $1,500 $1,900 Accumulated benefi t obligation 1,900 2,730 Projected benefi t obligation 2,500 3,300 Plan assets (fair value) 1,700 2,620 January 1, December 31, 2020 2020 Settlement rate and expected rate of return 10% Pension asset/liability $ 800 $ ? Service cost for the year 2020 400 Contributions (funding in 2020) 700 Benefi ts paid in 2020 200 Instructions a. Compute the actual return on the plan assets in 2020. b. Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) c. Compute the amount of net gain or loss amortization for 2020 (corridor approach). d. Compute pension expense for 2020.

E20.14 (LO 1, 2, 4) (Worksheet for E20.13) Using the information in E20.13 about Erickson Company’s defi ned benefi t pension plan, prepare a 2020 pension worksheet with supplementary schedules of computations. Prepare the journal entries at December 31, 2020, to record pension expense and related pension transactions. Also, indicate the pension amounts reported in the balance sheet.

only E20.14

Gibson Fabricators Corporation Gibson Fabricators Corporation manufactures a variety of parts for the automotive industry. The company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labour-hours. On the December 10, 2019, the company’s controller made a preliminary estimate of the predetermined overhead rate for 2020. The new rate was based on the estimated total manufacturing overhead cost of $2,475,000 and the estimated 52,000 total direct labourhours for 2020:

Predetermined overhead rate = $2,475,000/ 52,000 hours = $47.60 per direct labour-hour

This new predetermined overhead rate was communicated to top managers in a meeting on the December 11. The rate did not cause any comment because it was within a few pennies of the overhead rate that had been used during 2019. One of the subjects discussed at the meeting was a proposal by the production manager to purchase an automated milling machine centre built by Central Robotics. The president of Gibson Fabricators, Kevin Robinson, agreed to meet with the regional sales representative from Central Robotics to discuss the proposal. On the day following the meeting, Mr. Robinson met with Jay Warner, Central Robotics’ sales representative. The following discussion took place:

Robinson: Larry Winter, our production manager, asked me to meet with you since he is interested in installing an automated milling machine centre. Frankly, I am sceptical. You’re going to have to show me this isn’t just another expensive toy for Larry’s people to play with.

Warner: That shouldn’t be too difficult, Mr. Robinson. The automated milling machine centre has three major advantages. First, it is much faster than the manual methods you are using. It can process about twice as many parts per hour as your present milling machines. Second, it is much more flexible. There are some up-front programming costs, but once those have been incurred, almost no setup is required on the machines for standard operations. You just punch in the code of the standard operation, load the machine’s hopper with raw material, and the machine does the rest.

Robinson: Yeah, but what about cost? Having twice the capacity in the milling machine area won’t do us much good. That centre is idle much of the time anyway.

Warner: I was getting there. The third advantage of the automated milling machine centre is lower cost. Larry Winters and I looked over your present operations, and we estimated that the automated equipment would eliminate the need for about 6,000 direct labour-hours a year. What is your direct labour cost per hour?

Robinson: The wage rate in the milling area averages about $21 per hour. Fringe benefits raise that figure to about $30 per hour.

Warner: Don’t forget your overhead.

Robinson: Next year the overhead rate will be about $48 per hour.

Warner: So including fringe benefits and overhead, the cost per direct labour-hour is about $78.

Robinson: That’s right.

Warner: Since you can save 6,000 direct labour-hours per year, the cost savings would amount to about $468,000 a year.

Robinson: That’s pretty impressive, but you aren’t giving away this equipment are you?

Warner: Several options are available, including leasing and outright purchase. Just for comparison purposes, our 60-month lease plan would require payments of only $300,000 per year.

Robinson: Sold! When can you install the equipment?

Shortly after this meeting, Mr. Robinson informed the company’s controller of the decision to lease the new equipment, which would be installed over the Christmas vacation period. The controller realised that this decision would require recalculation of the predetermined overhead rate for the year 2020 since the decision would affect both the manufacturing overhead and the direct labourhours for the year. After talking with both the production manager and the sales representative from Central Robotics, the controller discovered that in addition to the annual lease cost of $300,000, the new machine would also require a skilled technician/programmer who would have to be hired at a cost of $45,000 per year to maintain and program the equipment. Both of these costs would be included in factory overhead. There would be no other changes in total manufacturing overhead cost, which is almost entirely fixed. The controller assumed that the new machine would result in a reduction of 6,000 direct labour-hours for the year from the levels that had initially been planned. When the revised predetermined overhead rate for the year 2020 was circulated among the company’s top managers, there was considerable dismay.

Required: Part A – Report Write a report addressing the following questions to be submitted to the president of Gibson Fabricators, Kevin Robinson. 1. Recalculate the predetermined rate assuming that the new machine will be installed. Explain why the new predetermined overhead rate is higher (or lower) than the rate that was originally estimated for the year 2020.

2. The company has received a job order from Fairfield corporation. The estimated direct material costs for delivering the order is $45,800. The new machine will be used for this job. The expected labour cost will be $8,400 for 400 hours of direct labour. What will be the estimated total production cost of this job under the new predetermined rate?

A company with fixed manufacturing costs of $500,000 produces 100,000 units in 2020 and 125,000 units in 2021. The company sells 90,000 units each in both years. Other costs and selling price are unchanged for 2020 and 2021. Assume that there was no beginning inventory in 2020. Which of the following is true? Variable costing income will be greater in 2020 than in 2021. The dollar amount of ending inventory will be greater in 2020 than in 2021. Variable costing income will be the same in 2021 and 2020.

What made a painting valuable before the modern era? What was the status of artists before the modern era? How was art purchased before there were art galleries?( subject art and history, words 100)

Suppose you own three computers, each of which independently lasts for an exponentially distributed time with a mean of 4 years. Let X(t) be the number of these computers that have broken down after t years.

(a) What is the probability that all three computers are still working after six months?

(b) On average, how long will it take before there is only one working computer left?

An unmarked police car traveling a constant 80.0 km/h is passed by a speeder traveling 135 km/h . Precisely 2.00 s after the speeder passes, the police officer steps on the accelerator; if the police car's acceleration is 1.60 m/s2 , how much time passes before the police car overtakes the speeder after the speeder passes (assumed moving at constant speed)?

A researcher randomly assigns five individuals to receive a new experimental procedure, measuring number of decision-making errors before and after the procedure. Baseline scores were 7, 6, 9, 7, and 6. Scores after the experimental treatment were. 5, 2, 4, 3, and 6. Conduct a two-tailed hypothesis test with a = .05, being sure to specify the null and alternative hypotheses

A researcher randomly assigns five individuals to receive a new experimental procedure, measuring number of decision-making errors before and after the procedure. Baseline scores were 7, 6, 9, 7, and 6. Scores after the experimental treatment were. 5, 2, 4, 3, and 6. Conduct a two-tailed hypothesis test with a = .05, being sure to specify the null and alternative hypotheses.

Explore your Own Case in Point: identify the appropriate Global Entry Strategy for your Chosen Company After reading this chapter you should be prepared to answer some basic questions about your target company.

2) Does your company have an exit strategy? Recall that exit strategies are to be determined before entry into the foreign market rather than after entry.

(1200 word report) Give an overview of the biochemical events that occur at the start point of the running race (that is, before the runner has commenced running), after 5 minutes and after 45 minutes, in terms of:

● the processes involved in the mobilisation and/or use of both types of fuels (carbohydrates and lipids).

● a brief overview of the biochemical pathways used to degrade these fuel molecules

● a comparison of the yield of ATP for both fuels