1. Suppose that a random sample of size 64 is to be selected from a population with mean 40 and standard deviation 5.
a. What is the mean of the ¯xx¯ sampling distribution?
b. What is the standard deviation of the ¯xx¯ sampling distribution?
c. What is the approximate probability that ¯xx¯ will be within 0.5 of the population mean μμ?
d. What is the approximate probability that ¯xx¯ will differ from μμ by more than 0.7?
2. A Food Marketing Institute found that 45% of households spend
more than $125 a week on groceries. Assume the population
proportion is 0.45 and a simple random sample of 190 households is
selected from the population. What is the probability that the
sample proportion of households spending more than $125 a week is
between 0.23 and 0.49?
Answer = (Enter your answer as a number accurate to 4
decimal places.)
3. Based on historical data, your manager believes that 29% of
the company's orders come from first-time customers. A random
sample of 193 orders will be used to estimate the proportion of
first-time-customers. What is the probability that the sample
proportion is less than 0.31?
Answer = (Enter your answer as a number accurate to 4
decimal places.)
In: Statistics and Probability
1.
Use the information provided to create a standard cost card for production of one glove box switch. To make one switch it takes 16 feet of plastic-coated copper wire and 0.5 pounds of plastic material. The plastic material can usually be purchased for $19.00 per pound, and the wire costs $2.40 per foot. The labor necessary to assemble a switch consists of two types. The first type of labor is assembly, which takes 3.5 hours. These workers are paid $27.00 per hour. The second type of labor is finishing, which takes 1 hours. These workers are paid $29.00 per hour. Overhead is applied using labor hours. The variable overhead rate is $14.80 per labor hour. The fixed overhead rate is $15.60 per hour. Round your answer to two decimal places.
| Standard Cost | $ |
2
Thing One Company has the following information available for the past year. They use machine hours to allocate overhead.
| Actual total overhead | $75,540 |
| Actual fixed overhead | $32,500 |
| Actual machine hours | 10,000 |
| Standard hours for the units produced | 9,400 |
| Standard variable overhead rate | $4.60 |
What is the variable overhead efficiency variance? Enter the amount as positive number.
| Variable overhead efficiency variance | $ | Favorable |
3.
A manufacturer planned to use $76 of variable overhead per unit produced, but in the most recent period, it actually used $72 of variable overhead per unit produced. During this same period, the company planned to produce 400 units but actually produced 450 units.
What is the variable overhead spending variance? Enter the amount as positive number.
| Variable overhead spending variance | $ | Favorable |
4
| Actual price paid for material | $1.00 |
| Standard price for material | $0.80 |
| Actual quantity purchased and used in production | 90 |
| Standard quantity for units produced | 110 |
| Actual labor rate per hour | $16 |
| Standard labor rate per hour | $14 |
| Actual hours | 200 |
| Standard hours for units produced | 230 |
A. Compute the material price and quantity, and the labor rate and efficiency variances. Enter all amounts as positive numbers.
| Material price variance | $ | Unfavorable |
| Material quantity variance | $ | Favorable |
| Labor rate variance | $ | Unfavorable |
| Labor efficiency variance | $ | Favorable |
B. What are some possible causes for this combination of favorable and unfavorable variances?
We paid more for our raw material, and assembly cost more per hour than expected.
In: Accounting
Flexible Steel of the United States is considering expanding its business in Zaire. Under current law, 100% of foreign investor cash flow from depreciation and 50% of accounting income must be retained within Zaire until the investment is 5 years old. Blocked funds may be reinvested in treasury deposits at 5% per annum, tax free, and compounded annually. Flexible Steel is contemplating a new steel plant investment as follows. All cash flows will be valued if they occur on December 31. Thus the investment outlay occurs on December 31, 2020, and earnings are available for local currency dividend payments on December 31, 2021 through 2025. All blocked funds may be exchanged for dollars on December 31, 2025. Foreign exchange rates are expected to be as follows:
December 31, 2018: Z 4.0/$
December 31, 2019: Z 4.5/$
December 31, 2020: Z 5.0/$
December 31, 2021: Z 5.5/$
December 31, 2022: Z 6.0/$
December 31, 2023: Z 6.5/$
Other information includes the following: * Investment outlay will be $40,000,000 for plant and equipment and $4,000,000 for working capital. * Recovery for building and equipment will be depreciated on a straight-line basis over 5 years to a zero salvage value. Working capital will be fully recovered at the end of five years. * Sales are expected to be Z100,000,000 per year. Variable cash costs will be 30% of sales, and fixed cash costs will be Z3,000,000 annually. * Corporate income taxes are 30% in both Zaire and the United States. * Flexible Steel's weighted average cost of capital for projects of this type is 15%. In similar projects would be expected to earn 15%. Calculate the NPV of the project based on cash flows to the parent.
A)$16,285,500 loss
B) $11,673,700 loss
C) $20,349,300 loss
D) $18,432,400 loss
E) $14,196,800 loss
In: Finance
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:
| Cost Formula | Actual Cost in March | ||
| Utilities | $16,300 plus $0.17 per machine-hour | $ | 21,160 |
| Maintenance | $38,900 plus $1.40 per machine-hour | $ | 57,900 |
| Supplies | $0.80 per machine-hour | $ | 14,200 |
| Indirect labor | $94,800 plus $1.10 per machine-hour | $ | 115,500 |
| Depreciation | $67,600 | $ | 69,300 |
During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March.
Required:
1. Prepare a flexible budget for March.
|
||||||||||||||||||||||
2. Prepare a report showing the spending variances for March.
|
|||||||||||||||||||||||||||
In: Accounting
Page 441
Required:
Complete the Production Department’s Flexible Budget Performance Report by filling in all the question marks.
PROBLEM 9–20 Activity and Spending Variances LO9–1, LO9–2, LO9–3
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.
After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:
| Cost Formula | Actual Cost in March |
|
| Utilities | $20,600 + $0.10 per machine-hour | $24,200 |
| Maintenance | $40,000 + $1.60 per machine-hour | $ 78,100 |
| Supplies | $0.30 per machine-hour | $8,400 |
| Indirect labor | $130,000 + $0.70 per machine-hour | $149,600 |
| Depreciation | $70,000 | $ 71,500 |
During March, the company worked 26,000 machine-hours and produced 15,000 units. The company had originally planned to work 30,000 machine-hours during March.
Required:
Calculate the activity variances for March. (Hint: Refer to Exhibit 9-6.) Explain what these variances mean.
Calculate the spending variances for March. (Hint: Refer to Exhibit 9-7.) Explain what these variances mean.
In: Accounting
11. The added costs incurred as a result of exporting products from one country to another are called:
| price deflation. |
| pricing mechanisms. |
| price escalation. |
| price gouging. |
| price translation. |
12. Which of the following generally bears the burden for (pays for) taxes and tariffs associated with importing goods from another country?
| the original manufacturer |
| the wholesaler |
| the retailer |
| the government of the host country |
| the consumer that buys the goods |
13. Currency exchange rate swings are considered by many global companies to be __________.
| an opportunity for windfall profits |
| an uncontrollable without a strong U.S. dollar |
| a standard seasonal variation |
| cost of doing business |
| a major pricing problem |
14. When PepsiCo first began to market Pepsi Cola in Russia, it was asked to accept an equal amount of Russian vodka as payment in return for permission to sell Pepsi Cola. The formal name for this trading strategy is called:
| bargaining. |
| countervailing trade. |
| buy-back. |
| countertrade. |
| bribery. |
15. Another term for transfer pricing is:
| fixed-base pricing. |
| variable-cost pricing. |
| demand-based pricing. |
| premium pricing. |
| intracompany pricing. |
16. In a(n) ______________ distribution structure, an importer controls a fixed supply of goods and the marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.
| export-oriented |
| import-oriented |
| manufacturer-oriented |
| service-oriented |
| customer-oriented |
17. The foundation of the Japanese distribution system is the:
| middleman. |
| intermediary. |
| manufacturer. |
| small retailer. |
| wholesaler. |
18. Which of the following does NOT contribute to explaining why Japan has a high number of small stores?
| population density |
| a tradition of frequent trips to the store |
| emphasis on service |
| freshness and quality expectations |
| limited commercial real estate plots |
19.Which of the following is an area of emphasis that characterizes Japanese distribution channels?
| variety |
| direct sales |
| cutthroat |
| fast delivery |
| harmony |
20.Which of the following illustrations would provide the domestic producer the most control with respect to a distribution channel in a foreign market?
| the domestic producer sells directly to a foreign consumer |
| the domestic producer sells to an exporter who then sells to an importer |
| the domestic producer sells to an importer who then sells to a foreign agent |
| the domestic producer sells to a foreign agent who then sells to a foreign retailer |
| the domestic producer sells to an export management company who sells directly to the foreign consumer |
In: Economics
1. List three main tools available to the Fed to change the money supply in the economy.
Which tool do you think is most commonly used?
If the Fed wanted to decrease money supply in the economy, would the Fed buy or sell securities in the open market?
What would be the first effect of this policy?
In: Economics
Q1: What is the operating budget and what are its components listing first the budget relied on by most other supporting budgets. Two sentences
Q2: Contrast the calculation differences between the flexible-budget and sales-volume variances. Two sentences
Q3: How do managers use variances? Two sentences
In: Accounting
that have you learned about yourself as a learner and student in transitioning to this environment? Comment on your most significant accomplishments (academic and personal); some of the difficult challenges (academic and personal) you have faced and how you dealt with them? What advice would you offer to an incoming first year student ?
In: Economics
Houston,Inc., planned and actually manufactured 200,000 units of its single product in
2017, its first year of operation. Variable manufacturing cost was $ 24 per unit produced. Variable operating (nonmanufacturing) cost was $9 per unit sold. Planned and actual fixed manufacturing costs were $600,000.Planned and actual fixed operating (nonmanufacturing) costs totaled $370,000. Houston sold 100,000 units of product at $ 45 per unit
Houston’s 2017 operating income using absorption costing is
(a) $530,000,
(b) $230,000,
(c) $600,000,
(d) $900,000,
(e) none of these. Show supporting calculations.
Absorption costing
Revenues 4500000
Cost of goods sold:
Beginning inventory 0
Variable manufacturing costs
Allocated fixed manufacturing costs 600,000
Cost of goods available for sale
Deduct ending inventory
Cost of goods sold
Gross margin
Variable operating costs
Fixed operating costs
Operating income
In: Accounting