Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/ Non-Value-Added Classification Billing error correction $24,800 Cable signal testing 69,000 Reinstalling service (installed incorrectly the first time) 53,400 Repairing satellite equipment 18,400 Repairing underground cable connections to the customer 16,100 Replacing old technology cable with higher quality cable 104,300 Replacing old technology signal switches with higher quality switches 119,200 Responding to customer home repair requests 29,900 Training employees 24,900 Total activity cost $460,000 b. Prepare a cost of quality report. Assume that sales are $2,300,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $ % % Appraisal % % Internal failure % % External failure % % Total $ % % c. Prepare a value-added/non-value-added analysis. Three Rivers Inc. Value-Added/Non-Value-Added Activity Analysis Category Amount Percent Value-added $ % Non-value-added % Total $ % d. What percentage of total costs of quality are considered to be value-added?

Regression analysis is often used in accounting to estimate costs. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. The following sample of production volumes and total cost data for a manufacturing operation was collected:

Use Excel and the MegaStat add-in to answer the following questions.

What percent of the variation in total cost can be explained by production volume? Report your answer to 4 decimal places, using conventional rounding rules.

ANSWER:      %

The company’s production schedule shows 575 units must be produced next month. What is the predicted total cost for this operation? Report your answer to 2 decimal places, using conventional rounding rules.

ANSWER:      $

What is the 98% prediction interval for the total cost for next month, when 575 units must be produced? Report your answer to 2 decimal places, using conventional rounding rules.

ANSWER:      Lower confidence limit =              Upper confidence limit =

What is the 98% confidence interval for the mean total cost for all months where 575 units must be produced? Report your answer to 2 decimal places, using conventional rounding rules.

ANSWER:      Lower confidence limit =              Upper confidence limit =

Suppose a firm's short run-run production function is q = 2 * L^0.5 , the firm faces a fixed price of L at PL = 4, and the firm’s fixed cost is 50.

a. Derive the short-run total cost and total variable cost functions, and then solve for the marginal cost, average variable cost, and average total cost functions. Assume the firm is a marginal price taker at P = 60, solve for the firm’s profit-maximizing amount of L to employ (assume P_L = 4)

b. Now assume the firm is a monopolist in its output market facing the (inverse) demand function P = 90 - q. Solve for the profit maximizing output and profit. How much will the firm employ?

1.) When we’re studying an individual firm’s production or costs (not the behavior of a market), how do we define the short run? What do we hold fixed in the short run when we’re studying a firm’s production and costs?

a. Suppose we’re analyzing the behavior of a firm’s costs in the short run. Given that we’re looking at the short run, what do we know about the firm’s marginal cost and average total cost? Briefly explain everything you can about the firm’s marginal cost and average total cost, just based on the fact that we’re talking about the short run.

• Marginal cost (MC):

Average total cost (ATC):

Systems analysis project 10: can you answer the 4 questions at the task section, thank you.
Personal Trainer, Inc. owns and operates fitness centers in a dozen Midwestern cities. The centers have done well, and the company is planning an international expansion by opening a new “supercenter” in the Toronto area. Personal Trainer’s president, Cassia Umi, hired an IT consultant, Susan Park, to help develop an information system for the new facility. During the project, Susan will work closely with Gray Lewis, who will manage the new operation.
Background
Susan and Gray finished their work on user interface, input, and output design. They developed a user-centered design that would be flexible and easy to learn. Now Susan turned her attention to the architecture for the new system. Susan wanted to consider their own organization and culture, enterprise resource planning, total cost of ownership, scalability, Web integration, legacy systems, processing methods, security issues, and corporate portal. She also needed to select a network plan, or topology, that would dictate the physical cabling and network connections, or consider a wireless network. When all these tasks were completed, she would submit a system design specification for approval.
Tasks:
1. What would be the advantages of selecting an Internet-based architecture for the Personal Trainer’s system?

2. If Personal Trainer wants to increase its Internet marketing efforts, what advice could you offer? Perform research to find out more about the topic of Web-based marketing before you answer Gray.

3. What software and hardware infrastructure will be necessary to ensure Personal Trainer can process point of sale transactions?

4. Prepare an outline for a system design specification and describe the contents of each section

tica Manufacturing (UM) was recently acquired by MegaMachines, Inc. (MM), and organized as a separate division within the company. Most manufacturing plants at MM use an ABC system, but UM has always used a traditional product costing system. Bob Miller, the plant controller at UM, has decided to experiment with ABC and has asked you to help develop a simple ABC system that would help him decide if it was useful. The controller’s staff has identified costs for the first month in the four overhead cost pools along with appropriate cost drivers for each pool:

The company manufactures two basic products with model numbers 308 and 510. The following are data for production for the first month as part of MM:

Required:

a. The current cost accounting system charges overhead to products based on machine-hours. What unit product costs will be reported for the two products if the current cost system continues to be used? (Round intermediate calculations and "Per unit cost" answers to 2 decimal places.)

b. A consulting firm has recommended using an activity-based costing system, with the activities based on the cost pools identified by the cost accountant. What are the cost driver rates for the four cost pools identified by the cost accountant? (Round your answers to 2 decimal places.)

c. What unit product costs will be reported for the two products if the ABC system suggested by the cost accountant’s classification of cost pools is used? (Round intermediate calculations and final answers to 2 decimal places.)

d. If management should decide to implement an activity-based costing system, what benefits should it expect?

Classified Balance Sheet (Number 2)

College Spirit sells sportswear with logos of major universities. At the end of 2019, the following balance sheet account balances were available.

Required:

1. Prepare a classified balance sheet for College Spirit at December 31, 2019.

Feedback

1. Prepare a balance sheet with proper form and using the proper heading. List assets first using the proper classifications (current assets; property, plant, and equipment; intangible assets) in order of liquidity, and total. List liabilities using the proper classifications (current liabilities; long-term liabilities) and total. List stockholders' equity using proper classifications (contributed capital; and retained earnings) and total.

2. Compute College Spirit's working capital and current ratio at December 31, 2019. Round the current ratio answer to two decimal places.

3. Conceptual Connection: Comment on College Spirit's liquidity as of December 31, 2019.

The working capital and current ratios show that College Spirit has adequate current assets to cover all of the current liabilities that will become due in the near future.

equirement 1. What is the cost per equivalent unit for conversion costs for KLN bottles in March

20172017​?

Use a formula to solve for the cost per equivalent unit for conversion costs. ​(Round the cost per equivalent unit amount to the nearest cent. Conv.​ = conversion.)

Requirement 2. Compute the cost per equivalent unit with respect to each of the three​ materials: cullets,​ silicone, and polypropylene.

Begin by using a formula to solve for the cost per equivalent unit with respect to cullets. ​(Round the cost per equivalent unit amount to the nearest cent. Conv.​ = conversion, Equiv.​ = equivalent.)

Use a formula to solve for the cost per equivalent unit with respect to silicone. ​(Round the cost per equivalent unit amount to the nearest cent. Conv.​ = conversion, Equiv.​ = equivalent.)

Use a formula to solve for the cost per equivalent unit with respect to polypropylene. ​(Round the cost per equivalent unit amount to the nearest cent. Conv.​ = conversion.)

Requirement 3. What is the cost of goods completed and transferred​ out?

Requirement 4. What is the cost of goods formed but not​ assembled?

Requirement 5.  What is the cost of goods assembled but not​ finished?

Cullets purchased $54,300

Silicone purchased $22,200

Polypropylene used $10,400

Total conversion costs incurred $70,840

Ending inventory, cullets  $5,000

Ending inventory, silicone $4,000

Number of bottles completed and transferred  13,000

Inventory in process at the end of the month:  

Units formed but not assembled  3,000

Units assembled but not finished  1,000

Consulting studies have indicated that of the total conversion costs required to complete a finished​ unit, the forming operation requires 50%​,

the assembly 40%​,

and the finishing 10%

If you know the following information:

total interest income $150

total interest expense 100

total noninterest income 75

total noninterest expense 90

provision for loan losses 10

income taxes 4

increases in banks undivided profits 6

calculate the following:

net interest income

net non interest income

pretax net operating income

net income after taxes

total operating revenues

total operating expenses

dividends paid to common stockholders

No of units   Fixed costs   Total variable costs   Total Costs   Total Sales
0   15,000   0   15,000   0
50   15,000   10,500   25,500   15,000
100   15,000   21,000   36,000   30,000
150   15,000   31,500   46,500   45,000
200   15,000   42,000   57,000   60,000
250   15,000   52,500   67,500   75,000
300   15,000   63,000   78,000   90,000

Create a CVP graph.