Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A's production is much more labor-intensive than that of Model B. Model B is also the more popular of the two speakers. The following data has been gathered for the two products:
| Product Data | ||
| Model A | Model B | |
| Units produced per year | 10,000 | 100,000 |
| Prime costs | $153,000 | $1,530,000 |
| Direct labor hours | 138,000 | 320,000 |
| Machine hours | 18,000 | 205,000 |
| Production runs | 40 | 70 |
| Inspection hours | 1,000 | 1,000 |
| Maintenance hours | 9,000 | 91,000 |
| Overhead costs: | ||
| Setup costs | $275,000 | |
| Inspection costs | 190,000 | |
| Machining | 430,000 | |
| Maintenance | 250,000 | |
| Total | $1,145,000 | |
| Required: | |
| 1. | Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Round to two decimal places.) |
| 2. | Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead cost to two decimal places.) |
| 3. | Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Department 1 (machine intensive) with a rate of $3.50 per machine hour and Department 2 (labor intensive) with a rate of $0.90 per direct labor hour. The consumption of these two drivers is as follows: |
|
Department 1 |
Department 2 |
|
|
Machine Hours |
Direct Labor Hours |
|
| Model A | 11,000 | 135,000 |
| Model B | 150,000 | 280,000 |
| Compute the overhead cost per unit for each product by using departmental rates. (Round to two decimal places.) | |
| 4. | CONCEPTUAL CONNECTION Using the activity-based product costs as the standard, comment on the ability of departmental rates to improve the accuracy of product costing. Did the departmental rates do better than the plantwide rate? |
Plantwide Rate
1. Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Round to two decimal places.)
Plantwide rate: per DLH
| Model A: overhead cost per unit | |
| Model B: overhead cost per unit |
Activity Rates
2. Compute the overhead cost per unit for each product by using ABC. (Round rates and unit overhead costs to two decimal places.)
| Model A: overhead cost per unit | |
| Model B: overhead cost per unit |
Note: Be sure to complete both tables below.
| Activity | Driver | Activity Rate |
| Setups | per | |
| Inspections | per | |
| Machining | per | |
| Maintenance | per |
| Overhead assignment | ||
| Model A | Model B | |
| Setups | ||
| Inspections | ||
| Machining | ||
| Maintenance | ||
| Total overhead | ||
| ÷ Units produced | ||
| Overhead per unit | ||
Departmental Rates
3. Suppose that Ramsey decides to use departmental overhead rates. There are two departments: Department 1: (machine intensive) with a rate of $3.50 per machine hour and Department 2: (labor intensive) with a rate of $0.90 per direct labor hour. The consumption of these two drivers is as follows:
|
Department 1 |
Department 2 |
|
|
Machine Hours |
Direct Labor Hours |
|
| Model A | 11,000 | 135,000 |
| Model B | 150,000 | 280,000 |
Compute the overhead cost per unit for each product by using departmental rates. (Round to two decimal places.)
| Model A: per unit | |
| Model B: per unit |
In: Accounting
3.17 You and I play a tennis match. It is deuce, which means if
you win the
next two rallies, you win the game; if I win both rallies, I win
the game; if
we each win one rally, it is deuce again. Suppose the outcome of a
rally is
independent of other rallies, and you win a rally with probability
p. Let W be
the event “you win the game,” G “the game ends after the next two
rallies,”
and D “it becomes deuce again.”
a. Determine P(W | G).
b. Show that P(W) = p2 + 2p(1 − p)P(W | D) and use P(W) = P(W |
D)
(why is this so?) to determine P(W).
c. Explain why the answers are the same.
In: Statistics and Probability
Calculate percentages for the following table. A prior Gamma analysis has indicated that the relationship is significant (p-value <0.05). Use these percentages to assess the strength (using the maximum difference method) and direction of this relationship.
|
FAMILY INCOME AND HAPPINESS (2004 GSS DATA) |
||||
|
Happiness |
||||
|
Family Income |
Not too happy |
Pretty happy |
Very Happy |
Total |
|
Below Average |
16 |
36 |
15 |
67 |
|
Average |
11 |
36 |
21 |
68 |
|
Above Average |
2 |
12 |
8 |
22 |
|
Total |
29 |
84 |
44 |
157 |
Write a bullet points describing the relationship between these two variables
In: Statistics and Probability
Suppose data were collected on the number of customers that frequented a grocery stores on randomly selected days before and after the governor of the state declared a lock down due to COVID 19. A sample of 6 days before the lockdown were chosen as well as 6 days randomly chosen after the lock down was in place. The number of shoppers each day were as follows:
|
Before lock down |
After lock down |
|
100 |
60 |
|
110 |
50 |
|
115 |
70 |
|
120 |
90 |
|
145 |
40 |
|
130 |
50 |
This is interval/ratio data because they are characteristics of the days.
In: Statistics and Probability
Whispering Company sells one product. Presented below is
information for January for Whispering Company.
| Jan. 1 | Inventory | 111 | units at $5 each | ||
| 4 | Sale | 90 | units at $8 each | ||
| 11 | Purchase | 159 | units at $6 each | ||
| 13 | Sale | 130 | units at $9 each | ||
| 20 | Purchase | 149 | units at $7 each | ||
| 27 | Sale | 85 | units at $11 each |
Whispering uses the FIFO cost flow assumption. All purchases and
sales are on account.
Assume Whispering uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Compute gross profit using the perpetual system.
In: Accounting
XYZ has 9 million shares of stock outstanding. The current share price is $50, and the
book value per share is $6. The firm also has two bond issues outstanding. The first
bond issue has a face value of $70 million and an 8% annual coupon; it sells for 95% of
par. The second bond has a face value of $60 million and a 7% annual coupon; it sells for
97% of par. The first bond matures in 10 years, whereas the second matures in 5 years.
(a) What are XYZ’s capital structure weights on a book value basis?
(b) What are XYZ’s capital structure weights on a market value basis?
(c) Suppose the company’s stock has a beta of 1.5. The risk-free rate is 5% and the market
risk premium is 8%. What is the company’sWACC if the tax rate is 30%?
In: Finance
Sum all the elements in the two-dimensional array below. Print
the
// result to the console.
var arr = [[1, 2, 3],
[4, 5, 6],
[7, 8, 9]]
javascript
In: Computer Science
G.P., a 66-year-old, right-handed white man, seeks treatment for swelling and decreased range of motion in the right knee. He tells you he retired at age 65 after 40 years of assembly-line work. He reports that his physical activity has decreased and his weight has increased 20 pounds since retiring. His hobbies include woodworking and playing cards and playing with his two grandchildren. He denies tobacco use and alcohol use. Although he describes several years of joint pain that gradually worsened, his activities were not limited until approximately 6 months ago, when he noted an insidious onset of swelling in the right knee. Over the years, he has sporadically taken acetaminophen, aspirin, and ibuprofen to control the pain. He reports that none of the drugs provided better relief than the others. His medical history is remarkable for hypertension and three episodes of gout. Diagnosis: Osteoarthritis 1. List specific goals of treatment for G.P. 2. What drug therapy would you prescribe, and why? 3. What are the parameters for monitoring success of the therapy? 4. Discuss specific patient education based on the prescribed therapy. 5. List one or two adverse reactions for the selected agent that would cause you to change therapy. 6. What would be the choice for second-line therapy? 7. What over-the-counter and/or alternative medications would be appropriate for G.P.? 8. What lifestyle changes should be recommended for G.P.? 9. Describe one or two drug–drug or drug–food interactions for the selected agent.
In: Nursing
A Carnot's engine has a low temperature reservoir at 7 °C with efficiency of 40%. It is desired to increase the efficiency to 50%. By how many degrees should the temperature of the high temperature reservoir be increased?
In: Physics
15) Wolf society, packs, and ecology have been studied extensively at different locations throughout the world. Sex ratios for 7 study sites in Northern Europe are shown below.
|
Site No. |
% Males (Winter) |
%Males (Summer) |
|
1 |
71 |
54 |
|
2 |
48 |
51 |
|
3 |
89 |
72 |
|
4 |
57 |
46 |
|
5 |
62 |
55 |
|
6 |
50 |
49 |
|
7 |
58 |
44 |
It is hypothesized that in winter "loner" males (not present in summer packs) join the pack to increase survival rate. Use a 5% level of significance to test the claim that the average percentage of males in a wolf pack is higher in winter.
H0 : µd=0; H1 : µd>0
In: Statistics and Probability