Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows.
Manufacturing costs (per unit based on expected activity of 23,000 units or 57,500 direct labor hours):
| Direct materials (3.0 pounds at $20) | $ | 60.00 | ||
| Direct labor (2.5 hours at $90) | 225.00 | |||
| Variable overhead (2.5 hours at $30) | 75.00 | |||
| Fixed overhead (2.5 hours at $40) | 100.00 | |||
| Standard cost per unit | $ | 460.00 | ||
| Budgeted selling and administrative costs: | ||||
| Variable | $ | 10 | per unit | |
| Fixed | $ | 1,400,000 | ||
Expected sales activity: 19,000 units at $550 per unit
Desired ending inventories: 14% of sales
Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity.
| Units produced | 22,000 | |||
| Units sold | 20,500 | |||
| Unit selling price | $ | 545 | ||
| Direct labor hours worked | 54,500 | |||
| Direct labor costs | $ | 4,959,500 | ||
| Direct materials purchased | 70,000 | pounds | ||
| Direct materials costs | $ | 1,400,000 | ||
| Direct materials used | 70,000 | pounds | ||
| Actual fixed overhead | $ | 1,200,000 | ||
| Actual variable overhead | $ | 1,625,000 | ||
| Actual selling and administrative costs | $ | 2,590,000 | ||
In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold.
Required:
e-1. Find the total over- or underapplied (both fixed and variable) overhead.
e-2. Would cost of goods sold be a larger or smaller expense item after the adjustment for over- or underapplied overhead?
f. Calculate the actual plant operating profit for the year.
In: Accounting
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows.
Manufacturing costs (per unit based on expected activity of 23,000 units or 57,500 direct labor hours):
| Direct materials (3.0 pounds at $20) | $ | 60.00 | ||
| Direct labor (2.5 hours at $90) | 225.00 | |||
| Variable overhead (2.5 hours at $30) | 75.00 | |||
| Fixed overhead (2.5 hours at $40) | 100.00 | |||
| Standard cost per unit | $ | 460.00 | ||
| Budgeted selling and administrative costs: | ||||
| Variable | $ | 10 | per unit | |
| Fixed | $ | 1,400,000 | ||
Expected sales activity: 19,000 units at $550 per unit
Desired ending inventories: 14% of sales
Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity.
| Units produced | 22,000 | |||
| Units sold | 20,500 | |||
| Unit selling price | $ | 545 | ||
| Direct labor hours worked | 54,500 | |||
| Direct labor costs | $ | 4,959,500 | ||
| Direct materials purchased | 70,000 | pounds | ||
| Direct materials costs | $ | 1,400,000 | ||
| Direct materials used | 70,000 | pounds | ||
| Actual fixed overhead | $ | 1,200,000 | ||
| Actual variable overhead | $ | 1,625,000 | ||
| Actual selling and administrative costs | $ | 2,590,000 | ||
In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold.
Required:
i. Assume that under the investment center evaluation plan the plant manager will be awarded a bonus based on ROI. If the manager has the opportunity in the coming year to invest in new equipment for $600,000 that will generate incremental earnings of $75,000 per year, would the manager undertake the project?
In: Accounting
Walt Disney’s movie, Moana™, opened in theaters across the United States in late November 2016. The movie is about an island teenager, Moana™, who sets out on an action-packed voyage to save her people. Disney has released a doll modeled after the heroine of the movie, its Classic Moana™ doll. The doll is 11” high and features moveable arms and legs and long, curly hair. Assume that the doll is sold wholesale to retailers by Disney for $10.
In the U.S., almost one third of all waste comes from packaging – and only 30% of that packaging has recycled content. Several years ago, Disney’s consumer products division affirmed its commitment to sustainability. Over the span of a few years, Disney developed its Smart Packaging Initiative (SPI), which is a metric-driven approach to assess the sustainability impact of its packaging. The SPI tools emphasizes three things in packaging design: 1) design for recyclability; 2) responsible sourcing; and 3) material optimization including material reduction. Disney uses the tool to help design packaging for its new products and has made its SPI tool available for other companies to use.
The packaging design for Disney’s Classic Moana™ doll benefited from Disney’s use of its SPI tool. The Moana™ doll packaging is made from 70% recycled content. It is printed with vegetable-based inks and contains no glue or tape, which all contributes to the packaging being able to be recycled more easily than traditional packages. In addition, Disney printed the pattern for a boat on the package so that children and their parents can assemble a boat out of the packaging, allowing for creative use of the packaging.
Costs of developing the sustainable packaging for the Moana™ doll would most likely include engineering costs, the costs of special dies used to cut out each package from its original cardboard sheet, and marketing development costs.
Questions
In: Accounting
Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Budgeted Unit Sales 37,000 57,000 28,500 57,000 Each T-shirt is expected to sell for $12. The purchasing manager buys the T-shirts for $5 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 22 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $74,000 per quarter plus 20 percent of total sales revenue. Required:
1. Determine budgeted sales revenue for each quarter.
2. Determine budgeted cost of merchandise purchased for each quarter.
3. Determine budgeted cost of good sold for each quarter.
4. Determine selling and administrative expenses for each quarter.
5. Complete the budgeted income statement for each quarter.
In: Accounting
Despite being a world “super-power,” the United States ranks poorly – compared to other industrialized nations – on multiple health indicators. Which statement best explains why this is true. a. Over 25 million U.S. residents do not have health insurance
b. Technological advances have created so many environmental carcinogens (cancer-causing agents) that cancer has become epidemic.
c. The U.S. education system has failed – the result is poor public health.
d. Investments in medical treatment rather than prevention and escalating rates of chronic disease.
In: Nursing
There are over 5,000 banks in the United States—more than 10 times more per person than in other industrialized countries. A recent study suggests that the long-run average cost curve for an individual bank is relatively flat. If Congress took steps to consolidate banks, thereby reducing the total number to 2,500, what would you expect to happen to costs within the banking industry?
Please provide a detailed explanation in terms of what long-run average cost curve for the individual bank which is relatively flat means.What were the costs of the banks/banking industry previously and what will be the effects of costs on the overall banking industry.
The question carries 15 marks. Please provide a detailed answer to justice the question and marks.
In: Economics
Charles Xavier (a.k.a. Professor X) is researching mutants in the United States using his machine, Cerebro. There are many mutants with many different abilities, but every mutant power has a common epistatic “control” gene. The alleles for this gene are labeled “C” and “c”. If an individual has a gene that codes for a certain ability, that ability will not express itself unless the control gene has two recessive alleles. Knowing this, Professor X wants to track this control gene, and evaluate its mutation rate throughout the American population. Note that a mutation from C to c is a forward mutation and from c to C is a reverse mutation. Of the 318,000,000 people tracked through Cerebro, 11,943 experienced forward mutations and 25,937 experienced reverse mutations. What are the forward and reverse mutation rates? What are the C and c allele frequencies, assuming this population is in equilibrium? Are mutants on the rise or decline in the U.S. population? (5 points)
In: Biology
Consider the Harris-Todaro migration model applied to the United States; where average annual personal income is $41,000 in Jackson, MS, with 9.82% unemployment rate; and $63,800 in Chicago, with a 6.24% unemployment rate. Applying these data, please answer the following questions:
(1) Explain why annual income is higher in Chicago than Jackson.
(2) Explain why unemployment rate is lower in Chicago than Jackson.
(3) What is the probability that an individual would find employment in Chicago?
(4) What is the probability that an individual would find employment in Jackson?
(5) Calculate a potential migrant’s Expected Earnings (dollar amount) in Jackson.
(6) Calculate a potential migrant’s Expected Earnings (dollar amount) in Chicago.
(7) What would be the Expected Earnings differential between the two cities in this model?
(8) Between Jackson and Chicago, which city would exhibit migration pull-factors? Explain.
(9) Between Jackson and Chicago, which city would exhibit migration push-factors? Explain.
(10) Based on this Harris-Todaro model, explain whether or not a College graduate in Jackson would decide to move to Chicago.
In: Economics
There are over 5,000 banks in the United States—more than 10 times more per person than in other industrialized countries. A recent study suggests that the long-run average cost curve for an individual bank is relatively flat. If Congress took steps to consolidate banks, thereby reducing the total number to 2,500, what would you expect to happen to costs within the banking industry?
Please provide a detailed explanation in terms of what long-run average cost curve for the individual bank which is relatively flat means.What were the costs of the banks/banking industry previously and what will be the effects of costs on the overall banking industry.
In: Economics
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows.
Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours):
| Direct materials (2 pounds at $20) | $ | 40.00 | ||
| Direct labor (1.5 hours at $90) | 135.00 | |||
| Variable overhead (1.5 hours at $20) | 30.00 | |||
| Fixed overhead (1.5 hours at $30) | 45.00 | |||
| Standard cost per unit | $ | 250.00 | ||
| Budgeted selling and administrative costs: | ||||
| Variable | $ | 5 | per unit | |
| Fixed | $ | 1,800,000 | ||
Expected sales activity: 20,000 units at $425.00 per unit
Desired ending inventories: 10% of sales
Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity.
| Units produced | 23,000 | |||
| Units sold | 21,500 | |||
| Unit selling price | $ | 420 | ||
| Direct labor hours worked | 34,000 | |||
| Direct labor costs | $ | 3,094,000 | ||
| Direct materials purchased | 50,000 | pounds | ||
| Direct materials costs | $ | 1,000,000 | ||
| Direct materials used | 50,000 | pounds | ||
| Actual fixed overhead | $ | 1,080,000 | ||
| Actual variable overhead | $ | 620,000 | ||
| Actual selling and administrative costs | $ | 2,000,000 | ||
In addition, all over- or underapplied overhead and all product cost variances are adjusted to cost of goods sold.
c. Find the direct labor variances. Indicate if they are favorable or unfavorable. (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect.)
Labor Efficiency Variance _________ Favorable/Unfavorable?
Labor Rate Variance ___________ Favorable/Unfavorable?
d. Find the direct materials variances (materials price variance and quantity variance). (Enter your answers in dollars not in pounds. Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance.)
Material quantity variance __________ Favorable/Unfavorable?
Material price variance ___________ Favorable/Unfavorable?
f. Calculate the actual plant operating profit for the year
Operating Profit __________
In: Accounting