Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 8 sq ft. $ 1.02 per sq. ft. $ 8.16 Direct labor 0.3 hr. $ 11.10 per hr. 3.33 Variable manufacturing overhead (based on direct labor hours) 0.3 hr. $ 2.60 per hr. 0.78 Fixed manufacturing overhead ($383,880 ÷ 914,000 units) 0.42 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,080,000 Number of square feet of plastic used 11,600,000 Cost of plastic purchased and used $ 11,600,000 Number of labor hours worked 312,000 Direct labor cost $ 3,681,600 Variable overhead cost $ 800,000 Fixed overhead cost $ 369,000
Required: Calculate Parker Plastic’s direct labor rate and efficiency variances.
In: Accounting
1. Which of the following statement about the CPI is not correct?
a. the CPI tracks changes in the price of import goods.
b. the CPI tracks changes in the price of export goods.
c. the CPI is based on the same set of goods over a multi-year period.
d. the CPI only includes consumption goods – it does not include capital investment goods.
2. Suppose 60% of money is held as currency and the reserve ratio is 0.3. The money multiplier is
a. 1/0.72 b. 1/0.3 c. 1/0.6 d. 1/0.18
3. Suppose nominal GDP in 2008 was greater than real GDP in 2008. Given this information, we know with certainty that
a. the GDP deflator in 2008 was greater than the GDP deflator in the base year.
b. the GDP deflator in 2008 was less than the GDP deflator in the base year.
c. real GDP in 2008 was less than real GDP in the base year.
d. real GDP in 2008 was greater than real GDP in the base year
In: Economics
Majer Corporation makes a product with the following standard costs: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct materials 6.3 ounces $ 4.00 per ounce $ 25.20 Direct labor 0.3 hours $ 19.00 per hour $ 5.70 Variable overhead 0.3 hours $ 4.00 per hour $ 1.20 The company reported the following results concerning this product in February. Originally budgeted output 5,800 units Actual output 8,600 units Raw materials used in production 30,900 ounces Actual direct labor-hours 1,990 hours Purchases of raw materials 33,300 ounces Actual price of raw materials $ 102.90 per ounce Actual direct labor rate $ 112.40 per hour Actual variable overhead rate $ 4.90 per hour The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for February is:
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.75 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 8,500 | hundred square feet |
| Travel to jobs | Miles driven | 309,500 | miles |
| Job support | Number of jobs | 1,700 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $349,000 which includes the following costs:
| Wages | $ | 142,000 |
| Cleaning supplies | 20,000 | |
| Cleaning equipment depreciation | 16,000 | |
| Vehicle expenses | 33,000 | |
| Office expenses | 64,000 | |
| President’s compensation | 74,000 | |
| Total cost | $ | 349,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 78 | % | 13 | % | 0 | % | 9 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 71 | % | 0 | % | 0 | % | 29 | % | 100 | % |
| Vehicle expenses | 0 | % | 77 | % | 0 | % | 23 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 65 | % | 35 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 30 | % | 70 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $136.50 (600 square feet @ $22.75 per hundred square feet). Calculate the customer margin earned on this job.
Complete this question by entering your answers in the tabs below.
Prepare the first-stage allocation of costs to the activity cost pools.
|
Required 2
Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)
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The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)
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Required 4
The revenue from the Flying N Ranch was $136.50 (6 hundred square feet @ $22.75 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)
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In: Accounting
Better Blooms is a florist shop which takes orders by internet and phone, prepares the desired floral arrangements, and delivers within a 25-mile radius of the shop. Since the profit margin on the business is small for each arrangement and the competition from other florists in the area is high, the owner is concerned about setting the appropriate costs for each delivery to be profitable while still being competitive. To investigate, the owner has gathered information on a random sample of 50 recent orders and has asked you to analyze the data using statistical methods and to report to her your findings. Factors thought to be related to the cost of delivering a floral arrangement are thought to be: (1) Preparation Time – the time in minutes between when the customer has placed an order and when it is ready for delivery; more expensive arrangements take longer to prepare, (2) Delivery Time – the travel time in minutes from the shop to the recipient of the arrangement, and (3) Mileage – the distance in miles from the shop to the customer (mileage and delivery time are sometimes inversely proportional when the delivery truck can use an interstate instead of traveling through heavy downtown traffic, for instance). Develop a multiple linear regression equation that describes the relationship between the cost of delivery and the other variables. Do these three variables explain a reasonable amount of the variation in the dependent variable? Estimate the delivery cost for an arrangement that takes 20 minutes for preparation, takes 30 minutes to deliver, and must cover a distance of 12 miles. Test to determine that at least one regression coefficient differs from zero. Also test to see whether any of the variables can be dropped, rerun the regression equation until only significant variables are included. Write management report interpreting the final regression equation, show your analysis in charts, tables, graphs so it is easy for the owner to see the analysis and conclusions, and back up your charts with detailed analysis using formulas and explanations of your statistical analysis steps. The owner wants to know your report is credible, but is not a statistician, so make your explanations clear.
Cost Prep Delivery
Distance
22.60 20 51 20
23.37 11 33 12
31.49 16 47 19
19.31 22 18 8
28.35 18 88 17
22.63 19 20 11
22.63 29 39 11
11.53 10 23 10
21.16 13 20 8
11.53 20 32 10
28.17 15 35 16
20.42 18 23 9
21.53 19 21 10
27.55 17 37 16
23.37 19 25 12
17.10 15 15 6
27.06 13 34 15
15.99 18 13 4
17.96 12 12 4
25.22 16 41 14
24.29 13 28 13
22.76 24 26 10
28.17 19 54 16
19.68 17 18 8
25.15 16 50 13
20.36 19 19 7
21.16 13 19 8
15.22 10 45 14
18.76 12 12 5
18.76 18 16 5
24.29 17 35 13
19.56 12 12 6
22.63 18 30 11
21.16 15 13 8
21.16 11 20 8
19.68 15 19 8
18.76 17 14 7
17.96 15 11 4
23.37 10 25 12
25.22 16 32 14
27.06 18 44 16
21.96 19 28 9
22.63 18 31 11
19.68 17 19 8
22.76 18 28 10
21.96 13 18 9
26.95 10 32 14
26.14 18 44 15
24.29 20 34 13
24.35 16 33 12
In: Statistics and Probability
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.05 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 13,500 | hundred square feet |
| Travel to jobs | Miles driven | 295,000 | miles |
| Job support | Number of jobs | 2,000 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $345,000 which includes the following costs:
| Wages | $ | 135,000 |
| Cleaning supplies | 23,000 | |
| Cleaning equipment depreciation | 11,000 | |
| Vehicle expenses | 36,000 | |
| Office expenses | 64,000 | |
| President’s compensation | 76,000 | |
| Total cost | $ | 345,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 71 | % | 11 | % | 0 | % | 18 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 70 | % | 0 | % | 0 | % | 30 | % | 100 | % |
| Vehicle expenses | 0 | % | 84 | % | 0 | % | 16 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 58 | % | 42 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 29 | % | 71 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 60-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N Ranch was $44.10 (200 square feet @ $22.05 per hundred square feet). Calculate the customer margin earned on this job.
Complete this question by entering your answers in the tabs below.
Prepare the first-stage allocation of costs to the activity cost pools.
|
Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)
|
The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 60-mile round-trip journey from the company’s offices in Bozeman. Comp
|
ute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)
The revenue from the Flying N Ranch was $44.10 (2 hundred square feet @ $22.05 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.)
|
In: Accounting
Shauna Coleman is single. She is employed as an architectural designer for Streamline Design (SD). Shauna wanted to determine her taxable income for this year. She correctly calculated her AGI. However, she wasn’t sure how to compute the rest of her taxable income. She provided the following information with hopes that you could use it to determine her taxable income.
Shauna paid $4,680 for medical expenses for care from a broken ankle. Also, Shauna’s boyfriend, Blake, drove Shauna (in her car) a total of 115 miles to the doctor’s office so she could receive care for her broken ankle.
Shauna paid a total of $3,400 in health insurance premiums during the year (not through an exchange). SD did not reimburse any of this expense. Besides the health insurance premiums and the medical expenses for her broken ankle, Shauna had Lasik eye surgery last year and she paid $3,000 for the surgery (she received no insurance reimbursement). She also incurred $450 of other medical expenses for the year.
SD withheld $1,800 of state income tax, $7,495 of Social Security tax, and $14,500 of federal income tax from Shauna’s paychecks throughout the year.
In 2016, Shauna was due a refund of $250 for overpaying her 2015 state taxes. On her 2015 state tax return that she filed in April of 2016, she applied the overpayment towards her 2016 state tax liability. She estimated that her state tax liability for 2016 will be $2,300.
Shauna paid $3,200 of property taxes on her personal residence. She also paid $500 to the developer of her subdivision, because he had to replace the sidewalk in certain areas of the subdivision.
Shauna paid a $200 property tax based on the state’s estimate of the value of her car.
Shauna has a home mortgage loan in the amount of $220,000 that she secured when she purchased the home. The home is worth about $400,000. Shauna paid interest of $12,300 in interest on the loan this year.
Shauna made several charitable contributions throughout the year. She contributed stock in ZYX Corp. to the Red Cross. On the date of the contribution, the FMV of the donated shares was $1,000 and her basis in the shares was $400. Shauna originally bought the ZYX Corp. stock in 2008. Shauna also contributed $300 cash to State University and religious artifacts she has held for several years to her church. The artifacts were valued at $500 and Shauna’s basis in the items was $300. Shauna had every reason to believe the church would keep them on display indefinitely. Shauna also drove 200 miles doing church-related errands for her minister. Finally, Shauna contributed $1,200 of services to her church last year.
Shauna’s car was totaled in a wreck in January. The car was worth $14,000 and her cost basis in the car was $16,000. The car was a complete loss. Shauna received $2,000 in insurance reimbursements for the loss.
Shauna paid $300 for architectural design publications, $100 for continuing education courses to keep her up to date on the latest design technology, and $200 for professional dues to maintain her status in a professional designer’s organization.
Shauna paid $250 in investment advisory fees and another $150 to have her tax return prepared (that is, she paid $150 in 2016 to have her 2015 tax return prepared).
Shauna is involved in horse racing as a hobby. During the year, she won $2,500 in prize money and incurred $10,000 in expenses. She has never had a profitable year with her horse racing activities, so she acknowledges that this is a hobby for federal income tax purposes.
Shauna sustained $2,000 in gambling losses over the year (mostly horse-racing bets) and only had $200 in winnings.
Assuming her AGI is $107,000
a. Determine Shauna’s taxable income and complete Form 1040 and Schedule A assuming her AGI is $107,000
In: Accounting
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:
| Activity Cost Pool | Activity Measure | Activity for the Year | |
| Cleaning carpets | Square feet cleaned (00s) | 15,000 | hundred square feet |
| Travel to jobs | Miles driven | 313,500 | miles |
| Job support | Number of jobs | 2,100 | jobs |
| Other (organization-sustaining costs and idle capacity costs) | None | Not applicable | |
The total cost of operating the company for the year is $348,000 which includes the following costs:
| Wages | $ | 142,000 |
| Cleaning supplies | 25,000 | |
| Cleaning equipment depreciation | 15,000 | |
| Vehicle expenses | 25,000 | |
| Office expenses | 63,000 | |
| President’s compensation | 78,000 | |
| Total cost | $ | 348,000 |
Resource consumption is distributed across the activities as follows:
| Distribution of Resource Consumption Across Activities | ||||||||||
| Cleaning Carpets | Travel to Jobs | Job Support | Other | Total | ||||||
| Wages | 77 | % | 14 | % | 0 | % | 9 | % | 100 | % |
| Cleaning supplies | 100 | % | 0 | % | 0 | % | 0 | % | 100 | % |
| Cleaning equipment depreciation | 74 | % | 0 | % | 0 | % | 26 | % | 100 | % |
| Vehicle expenses | 0 | % | 83 | % | 0 | % | 17 | % | 100 | % |
| Office expenses | 0 | % | 0 | % | 63 | % | 37 | % | 100 | % |
| President’s compensation | 0 | % | 0 | % | 25 | % | 75 | % | 100 | % |
Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.
Required:
1. Prepare the first-stage allocation of costs to the activity cost pools.
2. Compute the activity rates for the activity cost pools.
3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.
4. The revenue from the Flying N ranch was $191.60 (800 square feet @ $23.95 per hundred square feet). Calculate the customer margin earned on this job.
req 1
Prepare the first-stage allocation of costs to the activity cost pools.
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req 2
Prepare the first-stage allocation of costs to the activity cost pools.
|
req 3
The company recently completed a 800 square foot carpet-cleaning job at the Flying N ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)
|
req 4
The revenue from the Flying N ranch was $191.60 (8 hundred square feet @ $23.95 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.)
|
In: Accounting
Rebecca and Walter Bunge have been married for 5 years. They
live at 883 Scrub Brush Street, Apt. 52B, Las Vegas, NV 89125.
Rebecca is a homemaker and Walt is a high school teacher. Rebecca's
Social Security number is 222-43-7690 and Walt's is 700-01-0002.
Walt's earnings from teaching are:
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The Bunges incurred the following expenses during their move
from Maine to Nevada in January of 2016:
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The school district reimbursed Walter $500 for moving expenses. These are reflected on his W-2. Walter’s previous job, as a high school teacher in Maine, was only 5 miles from his home. Rebecca was unemployed prior to the move.
The Bunges own a ski condo located at 123 Buncombe Lane, Brian
Head, UT 84719. The condo was rented for 185 days during 2016 and
used by the Bunges for 15 days. Pertinent information about the
condo rental is as follows:
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The above amounts do not reflect any allocation between rental and personal use of the condo. The Bunges are active managers of the condo.
Click here to access the tax table to use for this problem.
Required:
Complete the Bunge's federal tax return for 2016. Use Form 1040, Schedule E, Form 3903, and Form 8582 to complete their tax return.
If an amount box does not require an entry or the answer is zero, enter "0". Do not round any percentages. If required, round your answers to the nearest dollar. If required, enter a "loss" as a negative number on the tax form. Do not enter deductions as negative numbers.
Note: Special instructions for Form 8582 - If required, use the minus sign to enter a "loss" as a negative number on the lines 1d, 4 and 16. However, per the instructions on the tax return, enter all numbers in Part II as positive amounts.
In: Accounting
On October 1, 2019, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2017. The company’s initial chart of accounts follows.
| Account | No. | Account | No. | |
| Cash | 101 | Common Stock | 307 | |
| Accounts Receivable | 106 | Dividends | 319 | |
| Computer Supplies | 126 | Computer Services Revenue | 403 | |
| Prepaid Insurance | 128 | Wages Expense | 623 | |
| Prepaid Rent | 131 | Advertising Expense | 655 | |
| Office Equipment | 163 | Mileage Expense | 676 | |
| Computer Equipment | 167 | Miscellaneous Expenses | 677 | |
| Accounts Payable | 201 | Repairs Expense—Computer | 684 | |
| Oct. | 1 | S. Rey invested $45,000 cash, a $20,000 computer system, and $8,000 of office equipment in the company in exchange for its common stock. | ||
| 2 | The company paid $3,300 cash for four months’ rent. (Hint: Debit Prepaid Rent for $3,300.) | |||
| 3 | The company purchased $1,420 of computer supplies on credit from Harris Office Products. | |||
| 5 | The company paid $2,220 cash for one year’s premium on a property and liability insurance policy. (Hint: Debit Prepaid Insurance for $2,220.) | |||
| 6 | The company billed Easy Leasing $4,800 for services performed in installing a new Web server. | |||
| 8 | The company paid $1,420 cash for the computer supplies purchased from Harris Office Products on October 3. | |||
| 10 | The company hired Lyn Addie as a part-time assistant for $125 per day, as needed. | |||
| 12 | The company billed Easy Leasing another $1,400 for services performed. | |||
| 15 | The company received $4,800 cash from Easy Leasing as partial payment on its account. | |||
| 17 | The company paid $805 cash to repair computer equipment that was damaged when moving it. | |||
| 20 | The company paid $1,728 cash for advertisements published in the local newspaper. | |||
| 22 | The company received $1,400 cash from Easy Leasing on its account. | |||
| 28 | The company billed IFM Company $5,208 for services performed. | |||
| 31 | The company paid $875 cash for Lyn Addie's wages for seven days' work. | |||
| 31 | The company paid $3,600 cash in dividends. | |||
| Nov. | 1 | The company reimbursed S. Rey in cash for business automobile mileage allowance (Rey logged 1,000 miles at $0.32 per mile). | ||
| 2 | The company received $4,633 cash from Liu Corporation for computer services performed. | |||
| 5 | The company purchased computer supplies for $1,125 cash from Harris Office Products. | |||
| 8 | The company billed Gomez Co. $5,668 for services performed. | |||
| 13 | The company received notification from Alex’s Engineering Co. that Business Solutions’s bid of $3,950 for an upcoming project was accepted. | |||
| 18 | The company received $2,208 cash from IFM Company as partial payment of the October 28 bill. | |||
| 22 | The company donated $250 cash to the United Way in the company's name. | |||
| 24 | The company completed work and sent a bill for $3,950 to Alex’s Engineering Co. | |||
| 25 | The company sent another bill to IFM Company for the past-due amount of $3,000. | |||
| 28 | The company reimbursed S. Rey in cash for business automobile mileage (1,200 miles at $0.32 per mile). | |||
| 30 | The company paid $1,750 cash for Lyn Addie's wages for 14 days' work. | |||
| 30 | The company paid $2,000 cash in dividends. |
Required:
1. Prepare journal entries in the General Journal to record each of the above transactions for Business Solutions. file:///D:/UAFS/Serial%20Problem%202%20Workpapers%20General%20Journal.pdf
2. Post the journal entries from requirement #1 to the General Ledger . file:///D:/UAFS/Serial%20Problem%202%20Workpapers%20General%20Ledger%20Trial%20Balance.pdf
3. Prepare a trial balance as of the end of
November on the worksheet labeled Trial Balance in #2
In: Accounting