Jake’s cheese Company produces gourmet cheese for resale at local grocery stores. Jake’s expected to use 0.50 direct labor hours to produce one unit (batch) of product, and the variable overhead rate is $5.00 per hour. Actual results are in for last year, which indicates 45,000 batches of cheese were produced and sold. The company's direct labor workforce worked 27,500 hours, and variable overhead costs totaled $144,000.

Required:

(1)       Calculate the variable overhead spending variance.     

(2)       Calculate the variable overhead efficiency variance.    

(3)       Suggest several possible reasons for the variable overhead spending and efficiency variances

Assume that the loanable funds market for the United States is currently in equilibrium.

a) Draw a correctly labeled graph of the loanable funds market for the United States, and label the equilibrium interest rate as r* and the quantity of funds as QF*.

b) Congress has decided to dramatically cut government spending over the next two years.

i) What will be the impact of the policy action on the government's budget?

ii) On your graph in part (a), show the impact of this policy action on the interest rate and quantity of funds.

c) As a result of the government spending cuts enacted by congress, show the effects of this policy action on a correctly labeled aggregate demand and aggregate supply graph.

The patient recovery time from a particular surgical procedure is normally distributed with a mean of 3 days and a standard deviation of 1.5 days. Let X be the recovery time for a randomly selected patient. Round all answers to 4 decimal places where possible.

a. What is the distribution of X? X ~ N(,)

b. What is the median recovery time? days

c. What is the Z-score for a patient that took 4.8 days to recover?

d. What is the probability of spending more than 4 days in recovery? e. What is the probability of spending between 2.8 and 3.4 days in recovery? f. The 70th percentile for recovery times is days.

Discussion Question

1.  Larraine makes many financial choices that others are critical of: not selling her jewelry, spending her food stamps on lobster, paying for cable TV instead of saving. From Larraine’s perspective, why do these choices make sense?  What do these choices mean to her? What does Matt mean when he says that Larraine spends money because she is poor and not the other way around (i.e. she's poor because of her spending)? Have you ever spent money you didn't really have on something you really didn't need? Why?

Assume that GDP (Y) is 10,000. Consumption (C) is given by the equation C = 500 + 0.8(Y – T). Investment (I) is given by the equation I = 2,000 – 50r, where r is the real rate of interest in percent. Taxes (T) are 500 and government spending (G) is also 500. a. What are the equilibrium values of C, I, and r? (Show your work) (4.5 marks) b. What are the values of private saving, public saving, and national saving? (Show your work) (1.5 marks) c. If government spending rises to 1,000, what are the new equilibrium values of C, I, and r? (Show your work)

AT&T is the second-largest provider of mobile telephony and the largest provider of fixed telephony in the United States, and also provides broadband subscription television services.

The CEO of AT&T wants to know what will affect the Total Monthly Spending at AT&T (y) for a customer. So far, the company has information on customer’s age (X1). We have total 50 observations.

1). Using the knowledge you learned from Chapter 3 to summarize the Total Monthly Spending at AT&T and customer’s age. What are the characteristics of this sample?

2). Determine the simple linear regression equation and interpret the slope

3) What is the goodness of fit of this model? Interpret the statistic.

4). At the 0.05 level, test the slope of the regression model. Write down 4-step. Do you think customer’s age will significantly affect the Total Monthly Spending at AT&T?

5). what is the 95% confidence interval for the slope? How does it tell you about the significance of the slope? Does this conclusion agree with the conclusion from 4)

6). What is the estimated average Total Monthly Spending at AT&T for 25 years old customers?

7). Calculate the prediction interval of the Total Monthly Spending at AT&T for a 25 years old customer (Show your calculation details in Excel). Interpret the results. (α=0.05)

8). Calculate the confidence interval for the mean of the Total Monthly Spending at AT&T for 25 years old customers (Show your calculation details in Excel). Interpret the results. (α=0.05

9). Comparing results from 7) and 8), which one is wider? Why?

10). Calculate SSR, SSE and SST for this model.

Walkenhorst Company’s machining department prepared its 2019 budget based on the following data:

The department uses machine hours to apply factory overhead to production. In 2019, the department used 85,000 machine hours and incurred $625,000 in total manufacturing overhead cost to manufacture 42,000 units. Actual fixed overhead cost for the year was $375,000.

Required:

Determine for the year:

1. The fixed, variable, and total factory overhead application rates (per machine hour). (Round your answers to 2 decimal places.)

2. The total flexible budget, for factory overhead cost based on output achieved in 2019.

3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U).

4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U).

5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U).

6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U).

Walkenhorst Company’s machining department prepared its 2019 budget based on the following data: Practical capacity 40,000 units Standard machine hours per unit 2 Standard variable factory overhead $3.00 per machine hour Budgeted fixed factory overhead $ 360,000 The department uses machine hours to apply factory overhead to production. In 2019, the department used 85,000 machine hours and incurred $625,000 in total manufacturing overhead cost to manufacture 42,000 units. Actual fixed overhead cost for the year was $375,000. Required: Determine for the year: 1. The fixed, variable, and total factory overhead application rates (per machine hour). (Round your answers to 2 decimal places.) 2. The total flexible budget, for factory overhead cost based on output achieved in 2019. 3. The production volume variance. State whether this variance was favorable (F) or unfavorable (U). 4. The total overhead spending variance. State whether this variance was favorable (F) or unfavorable (U). 5. The overhead efficiency variance. State whether this variance was favorable (F) or unfavorable (U). 6. The variable overhead spending variance and the fixed overhead spending variance. State whether each variance is favorable (F) or unfavorable (U).

Skip Company produces a product called Lem. The standard direct material cost to produce one unit of Lem is four quarts of raw material at $2.50 per quart. During May, 5,880 quarts of raw material were purchased at a cost of $14,112. All the purchased material was used to produce 1,400 units of Lem.

a. Compute the material price variance and material quantity variance for May.
Note: Do not use a negative sign with your answers.

b. Assume the same facts except that Skip Company purchased 8,400 quarts of material at the previously calculated cost per quart, but used only 5,880 quarts. Compute the material price variance and material quantity variance for May, assuming that Skip identifies variances at the earliest possible time.
Note: Do not use a negative sign with your answers.

c. Prepare the journal entries to record the material price and usage variances calculated in (b).
Note: List any multiple debits or any multiple credits in alphabetical order by account name.

Please answer all parts of the question.