Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:
The information is reported below.
| Commissions ($000) | Calls | Driven | Commissions ($000) | Calls | Driven |
| 22 | 143 | 2,375 | 38 | 150 | 3,291 |
| 13 | 132 | 2,228 | 45 | 145 | 3,103 |
| 33 | 148 | 2,735 | 29 | 147 | 2,122 |
| 39 | 146 | 3,354 | 38 | 146 | 2,795 |
| 24 | 142 | 2,291 | 38 | 153 | 3,213 |
| 48 | 142 | 3,449 | 14 | 134 | 2,287 |
| 29 | 140 | 3,116 | 35 | 145 | 2,852 |
| 39 | 140 | 3,342 | 26 | 135 | 2,692 |
| 42 | 146 | 2,845 | 28 | 133 | 2,933 |
| 32 | 137 | 2,627 | 26 | 128 | 2,674 |
| 21 | 137 | 2,122 | 43 | 158 | 2,990 |
| 14 | 140 | 2,222 | 35 | 147 | 2,830 |
| 48 | 150 | 3,464 | |||
Click here for the Excel Data File
Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)
Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)
At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?
In: Statistics and Probability
Suppose that the United States initially has a lower capital rental rate (r) than Mexico.
In: Economics
2. The latest available data showed health expenditures were $8086 per person in the United States or 17.6% of gross domestic product (Centers for Medicare & Medicaid Services website, April 1, 2012). Use $8086 as the population mean and suppose a survey research firm will take a sample of 100 people to investigate the nature of their health expenditures. Assume the population standard deviation is $2500. a) Identify the sampling distribution of the mean amount of health care expenditures for a sample of 100 people. (1.5 marks) b) What is the probability the sample mean will be within ±$200 of the population mean? (1 mark) c) What is the probability the sample mean will be greater than $9000? If the survey research firm reports a sample mean greater than $9000, would you question whether the firm followed correct sampling procedures? Why or why not? (0.5 + 0.5 mark).
In: Statistics and Probability
In: Accounting
In: Finance
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