For those fortunate souls who do not need glasses, the lens of the eye adjusts its focal length in order to form a proper image on the retina. This typically means that very distant objects as well as objects as close as 25 cm can be seen clearly. Many of us need corrective lenses since the lens in our eye cannot adjust sufficiently to produce a clear image over the full range object distances. This may be because the lens itself does not adjust well or because the eye is either longer or shorter than ‘normal’. In the case of someone who is nearsighted (can see up close) the eye may only be able to see clearly items up to 50cm or 1m away (this would be the far point). In order to see something further away, a lens (either glasses or contacts) is used to produce a virtual image of a distant object at the person’s far point. Their eye can then accommodate the rest of the way and produce a clear image. Suppose a person who has a far point of 63.0 cm is trying to view a distant object. What is the focal length (with correct sign) of a lens that would take a distant object and make an image on the same side of the lens as the object a distance 63.0 cm from the lens? Incorrect.

Is the lens converging or diverging?

Lenses are prescribed in terms of their refractive power, which is expressed in terms of diopters (see the text or your favorite search engine for the definition of a diopter). What is the refractive power of this lens in terms of diopters? (do not enter units.)

In the case of someone who is farsighted, the eye is not able to focus clearly on objects closer than a certain distance. This closest point on which a person’s eye can focus is called the near point. In this situation the corrective lens is used to make an object closer than the near point produce an image further away from the lens at the near point. Suppose a person who has a near point of 53.1 cm is trying to view a book at a distance of 25.0 cm. What is the focal length (with correct sign) of a lens that would take the book and make an image on the same side of the lens as the book a distance 53.1 cm from the lens?

Is the lens converging or diverging?

What is the refractive power of this lens in terms of diopters? (do not enter units.)

Kaleta Company uses the periodic inventory system and reports the following for the month of June. Units Unit Cost Total Cost

Units Unit Cost Total Cost

June 1 Inventory   200    $5 $1,000

June 12 Purchase 400     6 2,400

June 23 Purchase 300    7 2,100

June 30th Inventory 100

Compute the cost of ending inventory and the cost of goods sold using the average-cost method. (Round answers to 0 decimal places)

The ending inventory $________

The Cost of goods sold $__________

Janice Huffman has decided to start Rundle Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $710 per month. Labor costs are expected to be $50 per house cleaned and supplies are expected to cost $7 per house.

Required

a.Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost?

b.Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost?

c.Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost?

d.Determine the total expected cost of cleaning houses, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month.

e.Determine the average expected cost per house, assuming that Rundle Cleaning cleans 20, 30, or 40 houses during one month.

Janice Huffman has decided to start Jordan Cleaning, a residential housecleaning service company. She is able to rent cleaning equipment at a cost of $760 per month. Labor costs are expected to be $80 per house cleaned and supplies are expected to cost $8 per house.

Required

1. Determine the total expected cost of equipment rental and the average expected cost of equipment rental per house cleaned, assuming that Jordan Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of equipment a fixed or a variable cost?

2. Determine the total expected cost of labor and the average expected cost of labor per house cleaned, assuming that Jordan Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of labor a fixed or a variable cost?

3. Determine the total expected cost of supplies and the average expected cost of supplies per house cleaned, assuming that Jordan Cleaning cleans 20, 30, or 40 houses during one month. Is the cost of supplies a fixed or a variable cost?

4. Determine the total expected cost of cleaning houses, assuming that Jordan Cleaning cleans 20, 30, or 40 houses during one month.

5. Determine the average expected cost per house, assuming that Jordan Cleaning cleans 20, 30, or 40 houses during one month.

Lulu Lemon Pants is planning on producing 40,000 pants in the year. Each pant requires 0.60 metres of material at $4 per metre and 0.15 hour of direct labour at $18 per hour. Overhead is applied at the rate of $8 per direct labour hour.

Calculate the following budgeted costs:

a) Total metres of direct materials required to produce 40,000 pants: Answer metres

b) Total direct material cost to produce 40,000 pants: $ Answer

c) Total direct labour hours required to produce 40,000 pants: Answer hours

d) Total direct labour cost to produce 40,000 pants: $ Answer

e) Total manufacturing overhead cost applied in the production of 40,000 pants: $ Answer

Now calculate the following standard costs per pants (per unit):

f) Direct material cost per t-shirt: $ Answer per pants

g) Direct labour cost per t-shirt: $ Answer per pants

h) Manufacturing overhead cost per t-shirt: $ Answer per pants

i) Standard cost of one unit of product: $ Answer per pants

The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows:

Required:

1. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value added activities.

2. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following:

What type of chart is a Pareto chart?

Which activity appears first, in order from left to right?

3. Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not costs of quality. If required, round percentages to one decimal place.

4. Determine the percentages of total department costs that are value-added and non-value-added. If required, round percentages to one decimal place.

PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2]

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:

Required:
1. Complete the table.

2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $650.

4. Calculate Hermosa’s break-even point in units and sales revenue.

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

• Required 1
• Required 2
• Required 4

Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)

• Required 2

Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $650. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))

• Required 4

Calculate Hermosa’s break-even point in units and sales revenue. (Round your "Unit" and "Sales Revenue" answers to the nearest whole number.)

Why must total income and total outcome always be equal?