Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

In an article in the Journal of Marketing, Bayus studied the differences between "early replacement buyers" and "late replacement buyers" in making consumer durable good replacement purchases. Early replacement buyers are consumers who replace a product during the early part of its lifetime, while late replacement buyers make replacement purchases late in the product's lifetime. In particular, Bayus studied automobile replacement purchases. Consumers who traded in cars with ages of zero to three years and mileages of no more than 35,000 miles were classified as early replacement buyers. Consumers who traded in cars with ages of seven or more years and mileages of more than 73,000 miles were classified as late replacement buyers. Bayus compared the two groups of buyers with respect to demographic variables such as income, education, age, and so forth. He also compared the two groups with respect to the amount of search activity in the replacement purchase process. Variables compared included the number of dealers visited, the time spent gathering information, and the time spent visiting dealers. Regard the sample of 500 late replacement buyers for which σ = .50. How large a sample of late replacement buyers is needed to make us (Round up your answers to the next whole number.):

(a) 99 percent confident that x¯x¯ , the sample mean number of dealers visited, is within a margin of error of .04 of µ, the population mean number of dealers visited?

n ___________    buyers

(b) 99.73 percent confident that x¯x¯ is within a margin of error of .05 of µ?

n ___________      buyers

Preston Concrete is a major supplier of concrete to residential and commercial builders in the Pacific Northwest. The company's general pricing policy is to set prices at $128 per cubic yard. Deliveries for 2019 were 380,000 cubic yards, and total costs were:

$4,218,000 of the estimated total yard operation costs were variable, and all of the administrative costs were fixed. In addition to the costs above, estimated fixed delivery costs were $190,000 for the year, and estimated variable delivery costs were $6.00 per mile and $42.50 per truck hour. The rate per mile reflects the fact that more miles result in more gas, oil, and maintenance. The rate per truck hour reflects the fact that trucks that are waiting at a jobsite are kept running (so the concrete mix won't solidify), and drivers continue to get paid during that time.

Near the end of 2019, Fairview Construction Company asked for a delivery of 4,600 cubic yards of concrete but was unwilling to pay the regular price; it was only willing to pay $82 per cubic yard. Preston estimated that the job would require 7,200 miles of driving and 290 truck hours. The housing market in the Pacific Northwest had slowed during recent months, leaving Preston with enough capacity to fill the order, but its sales manager was reluctant to commit to such a reduced price.

REQUIRED

If Preston accepted the offer, what would the profit or loss be (enter a loss as a negative number)?

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

1. Cost drivers have a direct relationship with resources used. t or f

2. The Hi-Lo Method divides mixed costs into variable and fixed costs. t or f

3. Plant management is a batch-level activity. t or f

4. What is an important feature of the CVP income statement? a. is distributed internally and externally. b. classifies costs by department functions. c. reports contribution margin in the body of the statement. d. will reflect a different net income than the traditional income statement

5. Classify below activities as (V)alue-added or (N)on-value-added. ____ 1. Engineering design ____ 2. Machine repair ____ 3. Inventory storage ____ 4. Painting ____ 5. Assembly

6. Match the activity cost pools below (A to E) with the appropriate cost drivers for the law firm of West, Green, and Ink uses ABC to allocate its overhead costs. Use only one letter. A. Printing and photocopying. B. Secretarial support. C. Client support. D. Recruiting and training. E. Computer support. ______1. Computer processing minutes. ______2. Number of pages. ______3. Number of clients. ______4. Number of recruits. ______5. Direct professional hours

7. Apply the high-low for the data below Month Miles Total Cost January 80,000 $192,000 February 50,000 160,000 March 70,000 188,000 April 90,000 260,000. What is the total cost for May when 100,000 miles are expected to be driven? a. $235,000 b. $272,000 c. $228,000 d. $285,000

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

In this problem, we explore the effect on the standard deviation of multiplying each data value in a data set by the same constant. Consider the data set 4, 11, 11, 11, 7.

(a) Use the defining formula, the computation formula, or a calculator to compute s. (Round your answer to one decimal place.)
s =

(b) Multiply each data value by 2 to obtain the new data set 8, 22, 22, 22, 14. Compute s. (Round your answer to one decimal place.)
s =

(c) Compare the results of parts (a) and (b). In general, how does the standard deviation change if each data value is multiplied by a constant c?

Multiplying each data value by the same constant c results in the standard deviation increasing by c units. Multiplying each data value by the same constant c results in the standard deviation remaining the same.     Multiplying each data value by the same constant c results in the standard deviation being |c| times smaller. Multiplying each data value by the same constant c results in the standard deviation being |c| times as large.

(d) You recorded the weekly distances you bicycled in miles and computed the standard deviation to be s = 2.2 miles. Your friend wants to know the standard deviation in kilometers. Do you need to redo all the calculations?

Yes No    

Given 1 mile ≈ 1.6 kilometers, what is the standard deviation in kilometers? (Enter your answer to two decimal places.)
s = km

Used Cars - Actual Data: Below are the scatterplots, regression equations, and corresponding statistics for mileage, model year, and price for 15 different Honda Civics found on craigslist in May 2012.

Suppose you see a 2004 Honda Civic with 140 thousand miles on it. Estimate a reasonable price for this car via the following methods.

(a) Estimate the price using the mileage. Round your answer to the nearest dollar.
$

(b) Estimate the price using the year. Round your answer to the nearest dollar.
$

(c) Estimate the price using the multiple linear regression equation given by

ŷ = 716.9x₁ − 42.9x₂ − 1,424,349

where x₁ is the model year and x₂ is the mileage (in thousands). Round your answer to the nearest dollar.
$

(d) Which of the following statements are valid?

The estimate based only on mileage (part a) is too low because it doesn't consider the model year.

The estimate based only on the year (part b) is too high because it doesn't consider the mileage.     

The estimate from part (c) considers both variables (year and mileage) to produce a better estimate.

All of these are valid statements.