III.Indicate which of the following is Building cost (B) , Land cost (L) , Machinery and Equpment ( M and E) or simply an Expense (E) cost by designating the appropriate letter. (total 30 points)

a. Engineer’s fees of $100,000 for the building_____

b Assembly cost of $10, 000 for the new copier _____

c. Vandalism cost of $1,000 on the building during construction ______

d. Title fees of $20,000 to close the sale on the Land __________

e. Broker’s commission on the Land purchase ___________

f. Interest incurred on financing the construction __________

g,Fines paid to City of Austin for not obtaining the proper permits _____

h. Testing cost of $500 for the new copier _____________

i. Purchase price of Land $1,000,000______________

j Mistakes made in installation costing $5,000 ________

An online stock trading firm has a fixed cost of $1700 and a variable cost of $6.5x, where x is the number of clients that suscribe to the firm's trading service. If the firm has 170 clients, what is the lowest price it can charge each client without pushing total revenue below cost?

Question 2

Say that a buyer of bonds values good bonds at $400 and values bad bonds at $250. Sellers of both good and bad bonds value them at $300. If the fraction of good sellers is 30% and the rest are bad sellers, then the maximum price an uninformed buyer will pay is ____ and this ___ high enough to sustain trade in both types of bonds.

Question 3

A loan buyer in a secondary market believes that x% of the loans are high quality, and the rest are low quality. The buyer values high quality loans at $100,000 and low quality at $75,000. Banks selling loans value high quality loans at $83,750 and value low quality at $55,550. If the buyer cannot observe the bond's type, then the maximum price the buyer will pay is equal to the seller's value of high quality loans when x is

Question 4

A financial intermediary is hired to make a transaction "go forward". The intermediary can do a good job that costs the intermediary $400, or do a bad job that costs zero. If the intermediary does a good job the transaction will go forward. If the intermediary does a bad job the transaction will go forward with probability 0.85, and will fail with probability 0.15. The customer can't observe the intermediary's job choice and simply pays the intermediary $X if the transaction goes forward and pays $0 if it fails. What is the minimum X the customer must pay in order to persuade the intermediary to do a good job?

Question 5

When a bank makes its loans, if it screens its borrowers it will collect repayment revenue of $40,000 per loan, but if it doesn't screen its borrowers then it will collect $40,000 per loan with probability 0.8 and collect $0 with probability 0.2. The cost of screening is $2,000 per loan. In this case, the expected payoff for the bank from screening is ____ and the expected payoff from not screening is ____ .

The following information provides details of the cost, volume and cost drivers for the particular period in respect of ABC & Co. Products X Y Z Total Production and sales (units) 30,000 20,000 8,000 Raw material usage (units) 5 5 11 Direct material cost GHS 25 GHS 20 GHS 11 GHS 1,238,000 Direct labour hours 1⅓ 2 1 88,000 Machine hours 1⅓ 1 2 76,000 Direct labour cost 8 12 6 Number of production run 3 7 20 30 Number of deliveries 9 3 20 32 Number of receipts 15 35 220 270 Number of production orders 15 10 25 50 Overhead Cost: GHS Set-up 30,000 Machines 760,000 Receiving 435,000 Packing 250,000 Engineering 373,000 1,848,000 In the past the company has allocated overhead to products on the basis of direct labour hours. However, the majority of overheads are more closely related to machine hours than direct labour hours. The company has recently redesigned its cost system by recovering overheads using two volume-related bases: machine hours and material handling overhead rate for recovering overheads of the receiving department. Both the current and previous cost system reported low profit margin for product X, which is the company’s highest selling product. The management accountant has recently attended a conference on activity-based costing and the overhead cost for the last period have been analysed by major activities in order to compute activity-based costs. Required: 3 (a) Compute the product cost using a traditional volume-related costing system based on the assumptions that: i. All overheads are recovered on the basis of direct labour hours ii. The overheads of the receiving department are recovered by a material handling overhead rate and the remaining overheads are recovered using a machine hour rate. (b) Compute product costs using an activity-based costing system.

1, The cost of making 14 tables is $2,000. The cost of making 22 tables is $2,640. What is the cost per table?

Write a linear equation that tells you the total cost, C , of making x tables: C =

What is the total cost of making 17 tables? $

2, The cost of making 14 chairs is $1,090. The cost of making 26 chairs is $1,570.

What is the cost per chair?

Write a linear equation that tells you the total cost, C , of making x chairs: C =

If your total cost is $2,610, how many chairs did you make?

3,

Based on the table below calculate the cost for patient X using the ratio of cost to charge method

Identify and describe cost behaviour characteristics for the different cost elements of a product or service

what is the difference between actively cost accounting versus process product cost

The difference between the Actual cost and the Standard cost for direct labor is called:

Select one:

A. Direct Labor Rate Variance

B. Direct Labor Efficiency Variance

C. Direct Labor Split Variance

D. Direct Labor Flexible Budget Variance

E. None of the above

part 2

The difference between the split cost and the actual cost for direct materials is called the:

Select one:

A. Materials Price Variance

B. Materials Efficiency Variance

C. Materials Usage Variance

D. Materials Budget Variance

E. None of the above

5. The cost of heart procedures for a county-run hospital is $125,000, with a fixed cost of $50,000 and a variable cost of $75,000. The hospital completed 250 procedures last year. [A] Assuming no changes in the number of procedures the hospital will perform next year, calculate the cost of surgery for next year, if (a) a 2% increase in variable and 1.5% increase in fixed costs, and (b) it wants to maintain 3.5% safety margin. [B] What would be the cost if the number of procedures (1) will increase by 2%, and (2) will decrease by 4%, with and without safety margin, assuming no changes in cost conditions next year?

Preparing a Schedule of Cost of Finished Goods Manufactured, Cost of Goods Sold Schedule, and an Income Statement. Listed below is information related to Danbury Co’s manufacturing activities for the month of July 2016. Ending Balance Beginning Balance Materials Inventory $7,500 $ 6,000 Goods in Process Inventory 11,000 2,000 Finished Goods Inventory 10,000 9,000 During July 2016, Danbury Company purchased $20,000 of raw materials and incurred direct labor costs of $14,160. The company applies overhead at a rate of 50% of direct labor cost. General, selling and administrative costs amounted to $6,550, and the company sold 10,372 units of its product at a price of $5 each.  

A) Prepare Danbury’s schedule of cost of finished goods manufactured for July 2016.

B) Determine Danbury’s cost of goods sold during July 2016.

C) Prepare Danbury’s income statement for the month ended July 31, 2018 (ignoring interest expense and income taxes)