Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:

Required:
1. Compute the activity rate for each activity. (Round your answers to 2 decimal places.)

2. Classify each activity as facility, product, batch, or unit level.

Factory Overhead Cost Variance Report

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 12,000 hours for production:

Tannin has available 16,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Construct a factory overhead cost variance report for the Trim Department for July. Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.

**THIS IS ALL THE AVAILABLE INFORMATION I HAVE. I DON'T HAVE ANY OTHER INFORMATION**

Delta Corporation has the following capital structure: Cost (aftertax) Weights Weighted Cost Debt (Kd) 6.1 % 30 % 1.83 % Preferred stock (Kp) 7.6 20 1.52 Common equity (Ke) (retained earnings) 13.1 50 6.55 Weighted average cost of capital (Ka) 9.90 % a. If the firm has $23 million in retained earnings, at what size capital structure will the firm run out of retained earnings? (Enter your answer in millions of dollars (e.g., $10 million should be entered as "10").) b. The 6.1 percent cost of debt referred to earlier applies only to the first $6 million of debt. After that the cost of debt will go up. At what size capital structure will there be a change in the cost of debt? (Enter your answer in millions of dollars (e.g., $10 million should be entered as "10").)

1. Consider the cost function, C = 2q^2(wr)^1/2. Suppose the firm with this cost function is perfectly competitive in its output market and faces an output price, p. A. Find the marginal cost function for output. B. Find the average cost function. Show your work. C. Is this a long-run or short-run cost function? Explain. D. Derive the cost elasticity with respect to output. Show your formula and all calculations. What does this value of cost elasticity tell you about the degree of scale economies? Explain. E. Derive the supply function for output. Show all your logic and work. 2. Consider the cost function, C(q) = 0.5 q^2 − 10q + 200. A. Is it a short or long run cost function. Explain. B. Calculate the short-run average total cost function. C. Find the output level at which average total cost is minimized. Show your logic and work. D. Calculate the output supply function for a competitive firm whose market determined price of output is given by p. Show your logic and work. E. What is the shut-down condition? Explain its logic. 3. Consider the production function, q = L^1/4E^1/4K^1/4, where L is labor, E, energy, and K, capital. Their prices are respectively w, u, and r. The price of output is given by p. Output and input prices are competitively determined so that they are parametric (constants). Capital, K, is a fixed input. The short-run variable cost function is given by CV(q, w, u, K) = 2q2(wu/k)1/2. A. Use the short-run variable cost function to find the profit-maximizing output supply function. B. Find the maximum profit function. C. Compute the derivative of the maximum profit function with respect to output price, p. Does it look familiar? D. Compute the derivative of the maximum profit function with respect to input price, w, and multiply it by − 1: − ∂π/∂w where π denotes the maximum profit function. This derivative gives the profit-maximizing demand for labor. Together, the derivatives, − ∂π/∂w, − ∂π/∂u, and ∂π/∂p, constitute Hotelling’s lemma, the analog to Shephard’s lemma for the cost and expenditure functions.

ine Oak Furniture manufactures high-quality wooden desks and uses a standard cost system. A standard cost card for one model of desk, the “heritage”, developed for 2019, is shown below:

The company expected to produce and sell 300 units of the Heritage in March 2019.

Actual results for March 2019 are as follows:

• 310 units of the Heritage were produced.
• A total of 20,600 BF of wood was purchased and used at a cost of $9,942.
• Actual direct labour costs were $6,963 for 398 direct labour hours worked.
• Actual variable overhead incurred was $1,712 and actual fixed overhead incurred was $2,175.

Required:

Calculate the following variances and provide only numeric values without any formatting to the boxes given below. Be sure to indicate whether the variances are favourable or unfavourable as instructed. Round to the 4th decimal places for interim numbers, and round to the 2nd decimal places for final results.

i) What is fully distributed cost pricing? Derive fully distributed cost prices algebraically in linear market demand and costs system?

ii) Is there any better pricing scheme than fully distributed cost pricing? Explain.

1          A renewable energy electricity supply technology has the following characteristics:

1. If the owner can sell the electricity at 30 c/kWh,
2. 1. calculate the lifecycle cost of the technology over an assessment period of 25 years at a real discount rate of 5%                                
   2. Calculate the average unit cost of the power in present value terms (in cents/kWh) supplied by the technology over its lifetime at this real discount rate.
3. 1. What is the Levelised Cost of Electricity (LCOE) (in cents/kWh) for this case, with a salvage value of zero, and calculated using method 1 (that is, finding the constant price to charge for the electricity that gives a zero NPV at a real discount rate of 5% over 25 years)?
   2. Calculate this LCOE (add annualised capital cost to the annual operating cost, and divide by annual electricity supplied), and show that this gives the same value as method 1. Give values for the annualised capital cost and annual operating cost in your answer. (The annualised capital cost formula is the inverse of the Uniform Series Present Worth Factor formula.)

4. Using the figures in the table above as a baseline, work out an expression for Present Worth with real discount rate, assessment period, salvage value, and electricity price as independent variables. Then changing just one variable at a time (other things being kept equal) plot graphs of Present Worth versus each of these variables. Use a range of assessment periods up to the lifetime of the technology. Explore the effects of both positive and negative salvage values.

Note: to simplify the calculation of present worth, for assessment periods less than the lifetime, neglect the residual value of the technology, and assume salvage values are only incurred at the end of the lifetime of the technology.

I would appreciate if you can solve any part of this question.

Problem 16-07
Cost of Trade Credit

Calculate the nominal annual cost of nonfree trade credit under each of the following terms. Assume that payment is made either on the due date or on the discount date. Assume 365 days in year for your calculations. Do not round intermediate calculations.

1. 1/15, net 25. Round your answer to two decimal places.
   %
   
2. 2/10, net 55. Round your answer to two decimal places.
   %
   
3. 3/10, net 55. Round your answer to two decimal places.
   %
   
4. 2/10, net 50. Round your answer to two decimal places.
   %
   
5. 2/15, net 40. Round your answer to two decimal places.
   %

Complete the following: Depreciation expense per year, accumulated depreciation year, and net remaining undepreciated cost.

Assumptions are as follows:

Cost to be depreciated: 20,000 Estimated useful life of equipment: 10 years Year