Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $2.80 to determine the bid price. Since our average cost is only $2.585 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.”
To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the activity-based costing system follow:
| Activity Cost Pool | Activity Measure | Total Activity | |
| Removing asbestos | Thousands of square feet | 850 | thousand square feet |
| Estimating and job setup | Number of jobs | 400 | jobs |
| Working on nonroutine jobs | Number of nonroutine jobs | 100 | nonroutine jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | ||
| Note: The 100 nonroutine jobs are included in the total of 400 jobs. Both nonroutine jobs and routine jobs require estimating and setup. | |||
| Costs for the Year | ||
| Wages and salaries | $ | 400,000 |
| Disposal fees | 791,000 | |
| Equipment depreciation | 96,000 | |
| On-site supplies | 60,000 | |
| Office expenses | 300,000 | |
| Licensing and insurance | 500,000 | |
| Total cost | $ | 2,147,000 |
| Distribution of Resource Consumption Across Activities | ||||||||||||||||
| Removing Asbestos | Estimating and Job Setup | Working on Nonroutine Jobs | Other | Total | ||||||||||||
| Wages and salaries | 60 | % | 10 | % | 20 | % | 10 | % | 100 | % | ||||||
| Disposal fees | 60 | % | 0 | % | 40 | % | 0 | % | 100 | % | ||||||
| Equipment depreciation | 40 | % | 5 | % | 25 | % | 30 | % | 100 | % | ||||||
| On-site supplies | 60 | % | 25 | % | 15 | % | 0 | % | 100 | % | ||||||
| Office expenses | 10 | % | 35 | % | 25 | % | 30 | % | 100 | % | ||||||
| Licensing and insurance | 30 | % | 0 | % | 50 | % | 20 | % | 100 | % | ||||||
Required:
1. Perform the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system.
a. A routine 1,000-square-foot asbestos removal job.
b. A routine 2,000-square-foot asbestos removal job.
c. A nonroutine 2,000-square-foot asbestos removal job.
Complete this question by entering your answers in the tabs below.
Perform the first-stage allocation of costs to the activity cost pools.
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Req 2
Compute the activity rates for the activity cost pools.
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Req 3A to 3C
Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system. (Round the "Average Cost per thousand square feet" to 2 decimal places.)
a. A routine 1,000-square-foot asbestos removal job.
b. A routine 2,000-square-foot asbestos removal job.
c. A nonroutine 2,000-square-foot asbestos removal job.
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In: Accounting
The following data was collected to explore how the number of square feet in a house, the number of bedrooms, and the age of the house affect the selling price of the house. The dependent variable is the selling price of the house, the first independent variable (x1x1) is the square footage, the second independent variable (x2x2) is the number of bedrooms, and the third independent variable (x3x3) is the age of the house.
Square Feet Number of Bedrooms
Age Selling Price
2750 5 14 296600
2696 5 11 294400
2523 4 7 281400
2057 4 7 240600
1797 4 5 208600
Step 1 of 2 : Find the p-value for the regression equation that fits the given data. Round your answer to four decimal places.
In: Statistics and Probability
1. Calculate the current yield (show work)?
2. What is the "dirty price" when adding accrued interest to the "clean price"?
3. Assuming 182 days in six month period, 365 days per year estimate YTM using iterative method?
4. Draw Cash flow Diagram
Please show work with this homework
| Price | 170 |
| Coupon% | 4 |
| Maturity Date | 20 Jan 2019 |
| Yield to Maturity% | |
| Current Yield % | |
| Fitch Ratings: | AAA |
| Coupon Payment Frequency | Semi-Annual |
| First Coupon Date | 20 Jan 2009 |
| Offering Info | |
| Quanitiy Available | 300 |
| Minimum Trade Quanity | 150 |
| Dated Date | 20 Jan 2009 |
| Settlement Date | 15 Feb 2012 |
In: Accounting
a. Assuming that the expectations hypothesis is valid, compute the price of the four-year bond shown below at the end of (i) the first year; (ii) the second year; (iii) the third year; (iv) the fourth year. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| Beginning of year | Price of Bond | Expected Price |
| 1 | 978.43 | |
| 2 | 924.97 | |
| 3 | 840.12 | |
| 4 | 784.39 |
b. What is the rate of return of the bond in years 1, 2, 3, and 4? Conclude that the expected return equals the forward rate for each year. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
| Beginning of year | Expected rate of Return |
| 1 | % |
| 2 | % |
| 3 | % |
| 4 | % |
In: Finance
Consider the following linear programming problem
Maximize 6x1 + 4x2 + 5x3
Subject to:
2x1 + 3x2 + x3 ≥ 30
2x1 + x2 + x3 ≤ 50
4x1 + 2x2 + 3x3 ≤ 120
x1, x2, x3 ≥ 0
a) Find the optimal solution by using simplex method
b) Find the dual price for the first constraint.
c) Find the dual price for the second constraint.
d) Find the dual price for the third constraint.
e) Suppose the right-hand side of the third constraint is increased from 120 to 125. Find the new optimal
solution and its value.
f) Suppose the right-hand side of the third constraint is decreased from 120 to 110. Find the new optimal
solution and its value.
In: Operations Management
With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.7% and will mature on this day 38 years from now. The yield on the bond issue is currently 6.4%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons?
What is the percentage change in price for a zero coupon bond if the yield changes from 6.5% to 8.5%? The bond has a face value of $1,000 and it matures in 8 years. Use the price determined from the first yield, 6.5%, as the base in the percentage calculation.
In: Finance
Evaluate the effect of each shock below using first the classical model and second the Keynesian model. For the Classical model, include graphs of the goods market, the labor market, and the money market. For the Keynesian model, include an IS-LM-FE graph, an Aggregate Supply – Aggregate Demand graph, and a graph of labor market equilibrium with efficiency wages. For the Keynesian model, include short-run effects, while the price is constant, and long run effects after the price has fully adjusted.
In: Economics
Calculate the concentration of the standardized thiosulfate solution.
The following are the steps and the concentration of my KIO3 was 0.0114 and the weighed mass of Na2S2O3 was 1.719 g
Weigh about 1.7 g Na2S2O3 5H2O, and transfer it to a 4 oz glass storage bottle. Add 100 mL (graduated cylinder) of room-temperature DI water, which has beenbubbled extensively with nitrogen, and which contains 100 mg /liter Na2CO3. Mix
thoroughly and add 1 drop of chloroform to prevent bacterial growth.
2) For the standardization, pipet 5 mL of the KIO3 solution into each of three 125 mL Erlenmeyer flasks. From this point treat each flask separately until the titration isfinished. Make the calculation to estimate your approximate endpoint volume.
3) Add 0.5 g of solid KI and 2.5 mL of 0.5 M H2SO4 to the first flask, and immediately
begin titrating with the Na2S2O3 solution.
THE VOLUME OF THIOSULFATE USED UP WAS 5.09 mL
In: Chemistry
A box contains 500 envelopes, of which 75 contain $100
in cash, 150 contain $25, and 275 contain $10. An envelope may be
purchased for $25. What is the sample space for the different
amounts of money? Assign probabilities to the sample points and
then find the probability that the first envelope purchased
contains less than $100.
Question 2
Suppose that in a senior college class of 500 students it is found
that 210 smoke, 258 drink alcoholic beverages, 216 eat between
meals, 122 smoke and drink alcoholic beverages, 83 eat between
meals and drink alcoholic beverages, 97 smoke and eat between
meals, and 52 engage in all three of these bad health
practices.
If a member of this senior class is selected at random, find the
probability that the student
(a) smokes but does not drink alcoholic beverages;
(b) eats between meals and drinks alcoholic beverages but does not
smoke;
(c) neither smokes nor eats between meals.
In: Statistics and Probability
In: Accounting