Questions
Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services,...

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 $22.40 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) 13,000 hundred square feet
Travel to jobs Miles driven 218,000 miles
Job support Number of jobs 1,600 jobs
Other (organization-sustaining costs and idle capacity costs) None Not applicable

The total cost of operating the company for the year is $354,000 which includes the following costs:

Wages $ 148,000
Cleaning supplies 21,000
Cleaning equipment depreciation 15,000
Vehicle expenses 33,000
Office expenses 64,000
President’s compensation 73,000
Total cost $ 354,000

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 74 % 16 % 0 % 10 % 100 %
Cleaning supplies 100 % 0 % 0 % 0 % 100 %
Cleaning equipment depreciation 72 % 0 % 0 % 28 % 100 %
Vehicle expenses 0 % 80 % 0 % 20 % 100 %
Office expenses 0 % 0 % 64 % 36 % 100 %
President’s compensation 0 % 0 % 35 % 65 % 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.
Cleaning Carpets Travel to Jobs Job Support Other Total
Wages $0
Cleaning supplies 0
Cleaning equipment depreciation 0
Vehicle expenses 0
Office expenses 0
President’s compensation 0
Total cost $0 $0 $0 $0 $0

2. Compute the activity rates for the activity cost pools.
Activity Cost Pool Activity Rate
Cleaning carpets per hundred square feet
Travel to jobs per mile
Job support per job

3. The company recently completed a 200 square foot carpet-cleaning job at the Flying N Ranch—a 51-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 $44.80 (200 square feet @ $22.40 per hundred square feet). Calculate the customer margin earned on this job.

In: Accounting

ABC company's vice president of marketing proposes a new program to significantly increase product sales by...

ABC company's vice president of marketing proposes a new program to significantly increase product sales by 250,000 units per year throughout the 1998-2004 period. Specifically, it is suggested that the company take the following actions: A. Spend $2.5 million over the period of 1998-2000 as promotional expenditures - for example, spend $1.0 million each in the years 1998, 1999, and $0.5 million in the year 2000. B. Make a one-time investment of $1.4 million in plants and equipment needed at the beginning of 1998 to generate these additional products. No new warehouse capability is needed. This investment is to be depreciated on a straight-line basis over the seven-year period. There will be no salvage values for these plants and equipment in 2005. It is further assumed that the product unit cost is $8.00 in 1998, and it is estimated to increase by 3 percent per year. The product unit price is $20 in 1998, and it is estimated to change as manifested in the following table: Items 1998 1999 2000 2001 2002 2003 2004 Unit Price $20.00 $20.60 $21.00 $21.15 $21.25 $21.25 $21.00 The SG&A expenditure is estimated at $1.25 million in 1998, and it will increase by 3 percent per year during the six-year period. A corporate tax of 40 percent must be paid for any marginal income. There is an interest charge during this period, and the company's weighted average cost of capital (WACC) is 8 percent. If the company's hurdle rate for this type of investment is 25 percent, and the NPV (Net Present Value) for the proposed marketing initiative is negative at that hurdle rate of 0.25, why would you not recommend the marketing initiative be approved? Explain in depth.

In: Accounting

Student Sex math physic chem 401 F 83 53 60 402 M 66 58 61 403...

Student Sex math physic chem
401 F 83 53 60
402 M 66 58 61
403 F 78 49 62
404 M 71 66 60
405 F 77 43 46
406 M 71 49 50
407 F 80 54 59
408 M 70 60 58
409 F 82 54 56
410 M 70 52 57
411 F 80 48 52
412 M 70 53 47
413 F 80 48 47
414 M 68 50 58
415 F 82 62 60
416 M 71 55 51
417 F 76 55 66
418 M 78 65 46
419 F 82 55 54
420 M 67 47 52
421 F 78 48 52
422 M 64 57 60
423 F 79 52 56
424 M 73 52 51
425 F 82 50 57
426 M 69 65 64
427 F 77 49 55
428 M 73 52 51
429 F 81 58 60
430 M 70 53 53
431 F 76 56 56
432 M 70 49 51
433 F 92 68 60
434 M 73 58 52
435 F 82 56 59
436 M 79 63 41
437 F 83 48 50
438 M 74 58 46
439 F 74 52 48
440 M 64 54 51
441 F 78 57 52
442 M 69 51 54
443 F 82 55 50
444 M 68 64 64
445 F 77 52 58
446 M 72 56 53
447 F 85 54 47
448 M 59 46 62
449 F 84 67 46
450 M 81 63 49
451 F 81 51 58
452 M 67 51 59
453 F 79 63 52
454 M 67 51 53
455 F 76 49 54
456 M 65 48 55
457 F 78 59 53
458 M 71 55 55
459 F 80 47 47
460 M 75 64 59
461 F 84 59 48
462 M 74 52 49
463 F 75 52 50
464 M 62 56 71
465 F 81 57 51
466 M 64 43 54
467 F 77 51 55
468 M 68 45 50
469 F 80 47 58
470 M 64 44 55
471 F 70 41 57
472 M 73 64 61
473 F 83 65 55
474 M 71 53 51
475 F 82 48 58
476 M 71 59 59
477 F 70 58 59
478 M 74 52 48
479 F 79 54 59
480 M 75 61 58
481 F 74 54 69
482 M 73 54 50
483 F 81 57 56
484 M 70 48 47
485 F 79 46 56
486 M 74 54 44
487 F 87 72 56
488 M 74 44 47
489 F 78 49 48
490 M 72 60 61
491 F 71 49 60
492 M 71 49 51
493 F 90 64 54
494 M 74 54 43
495 F 81 56 58
496 M 73 54 51
497 F 81 52 58
498 M 73 54 47
499 F 79 58 59
500 M 62 36 56
501 F 77 54 55
502 M 78 65 47
503 F 79 57 69
504 M 71 52 57
505 F 79 58 49
506 M 77 59 59
507 F 71 47 56
508 M 66 52 61
509 F 88 59 59
510 M 62 55 66
511 F 85 58 59
512 M 76 62 49
513 F 84 67 56
514 M 69 52 59
515 F 81 52 50
516 M 71 60 51
517 F 78 54 65
518 M 73 60 59
519 F 79 52 66
520 M 74 64 53
521 F 78 60 56
522 M 72 52 43
523 F 78 57 60
524 M 70 56 59
525 F 86 57 61
526 M 68 45 54
527 F 81 57 53
528 M 66 53 59
529 F 80 60 52
530 M 69 55 52
531 F 86 61 49
532 M 73 70 64
533 F 82 52 50
534 M 73 59 54
535 F 79 57 64
536 M 65 57 63
537 F 78 44 48
538 M 69 56 58
539 F 74 54 54
540 M 64 41 58
541 F 76 56 55
542 M 66 62 59
543 F 77 51 65
544 M 66 60 70
545 F 78 60 59
546 M 75 59 53
547 F 78 51 58
548 M 67 58 67
549 F 82 51 49
550 M 68 55 52
551 F 76 45 54
552 M 67 61 62
553 F 80 67 64
554 M 72 64 57
555 F 84 53 48
556 M 71 58 61
557 F 75 58 59
558 M 69 63 59
559 F 86 68 65
560 M 76 71 55
561 F 85 57 50
562 M 76 62 54
563 F 79 49 56
564 M 72 49 46
565 F 79 59 51
566 M 67 51 54
567 F 80 56 58
568 M 59 57 73
569 F 80 57 66
570 M 68 58 56
571 F 81 56 66
572 M 67 55 59
573 F 82 59 56
574 M 72 58 55
575 F 81 54 45
576 M 60 55 64
577 F 85 65 52
578 M 72 50 52
579 F 79 51 57
580 M 73 58 57
581 F 81 56 57
582 M 79 58 42
583 F 78 47 62
584 M 73 65 53
585 F 87 55 50
586 M 69 52 53
587 F 85 42 55
588 M 69 59 61
589 F 82 56 58
590 M 74 54 45
591 F 80 41 51
592 M 74 53 56
593 F 71 51 58
594 M 61 53 61
595 F 81 63 59
596 M 73 53 52
597 F 79 48 54
598 M 74 70 61
599 F 82 48 45
600 M 65 45 56

use the first 160 of your observations for question A, B,C  and  use the last 40 for question D

a.What is a 90% confidence interval for the correlation between Math and Physic?

b. Conduct a simple regression analysis with Math as your dependent variable and Chem as your independent variable. Discuss what you see/observe.

c.Conduct a multiple regression analysis with both Physic and Chem as your predictors. Discuss what you see/observe. Having done this, evaluate (and discuss) whether the incorporation of Sex into your model would be useful.

In: Statistics and Probability

Student Sex math physic chem 401 F 83 53 60 402 M 66 58 61 403...

Student Sex math physic chem
401 F 83 53 60
402 M 66 58 61
403 F 78 49 62
404 M 71 66 60
405 F 77 43 46
406 M 71 49 50
407 F 80 54 59
408 M 70 60 58
409 F 82 54 56
410 M 70 52 57
411 F 80 48 52
412 M 70 53 47
413 F 80 48 47
414 M 68 50 58
415 F 82 62 60
416 M 71 55 51
417 F 76 55 66
418 M 78 65 46
419 F 82 55 54
420 M 67 47 52
421 F 78 48 52
422 M 64 57 60
423 F 79 52 56
424 M 73 52 51
425 F 82 50 57
426 M 69 65 64
427 F 77 49 55
428 M 73 52 51
429 F 81 58 60
430 M 70 53 53
431 F 76 56 56
432 M 70 49 51
433 F 92 68 60
434 M 73 58 52
435 F 82 56 59
436 M 79 63 41
437 F 83 48 50
438 M 74 58 46
439 F 74 52 48
440 M 64 54 51
441 F 78 57 52
442 M 69 51 54
443 F 82 55 50
444 M 68 64 64
445 F 77 52 58
446 M 72 56 53
447 F 85 54 47
448 M 59 46 62
449 F 84 67 46
450 M 81 63 49
451 F 81 51 58
452 M 67 51 59
453 F 79 63 52
454 M 67 51 53
455 F 76 49 54
456 M 65 48 55
457 F 78 59 53
458 M 71 55 55
459 F 80 47 47
460 M 75 64 59
461 F 84 59 48
462 M 74 52 49
463 F 75 52 50
464 M 62 56 71
465 F 81 57 51
466 M 64 43 54
467 F 77 51 55
468 M 68 45 50
469 F 80 47 58
470 M 64 44 55
471 F 70 41 57
472 M 73 64 61
473 F 83 65 55
474 M 71 53 51
475 F 82 48 58
476 M 71 59 59
477 F 70 58 59
478 M 74 52 48
479 F 79 54 59
480 M 75 61 58
481 F 74 54 69
482 M 73 54 50
483 F 81 57 56
484 M 70 48 47
485 F 79 46 56
486 M 74 54 44
487 F 87 72 56
488 M 74 44 47
489 F 78 49 48
490 M 72 60 61
491 F 71 49 60
492 M 71 49 51
493 F 90 64 54
494 M 74 54 43
495 F 81 56 58
496 M 73 54 51
497 F 81 52 58
498 M 73 54 47
499 F 79 58 59
500 M 62 36 56
501 F 77 54 55
502 M 78 65 47
503 F 79 57 69
504 M 71 52 57
505 F 79 58 49
506 M 77 59 59
507 F 71 47 56
508 M 66 52 61
509 F 88 59 59
510 M 62 55 66
511 F 85 58 59
512 M 76 62 49
513 F 84 67 56
514 M 69 52 59
515 F 81 52 50
516 M 71 60 51
517 F 78 54 65
518 M 73 60 59
519 F 79 52 66
520 M 74 64 53
521 F 78 60 56
522 M 72 52 43
523 F 78 57 60
524 M 70 56 59
525 F 86 57 61
526 M 68 45 54
527 F 81 57 53
528 M 66 53 59
529 F 80 60 52
530 M 69 55 52
531 F 86 61 49
532 M 73 70 64
533 F 82 52 50
534 M 73 59 54
535 F 79 57 64
536 M 65 57 63
537 F 78 44 48
538 M 69 56 58
539 F 74 54 54
540 M 64 41 58
541 F 76 56 55
542 M 66 62 59
543 F 77 51 65
544 M 66 60 70
545 F 78 60 59
546 M 75 59 53
547 F 78 51 58
548 M 67 58 67
549 F 82 51 49
550 M 68 55 52
551 F 76 45 54
552 M 67 61 62
553 F 80 67 64
554 M 72 64 57
555 F 84 53 48
556 M 71 58 61
557 F 75 58 59
558 M 69 63 59
559 F 86 68 65
560 M 76 71 55
561 F 85 57 50
562 M 76 62 54
563 F 79 49 56
564 M 72 49 46
565 F 79 59 51
566 M 67 51 54
567 F 80 56 58
568 M 59 57 73
569 F 80 57 66
570 M 68 58 56
571 F 81 56 66
572 M 67 55 59
573 F 82 59 56
574 M 72 58 55
575 F 81 54 45
576 M 60 55 64
577 F 85 65 52
578 M 72 50 52
579 F 79 51 57
580 M 73 58 57
581 F 81 56 57
582 M 79 58 42
583 F 78 47 62
584 M 73 65 53
585 F 87 55 50
586 M 69 52 53
587 F 85 42 55
588 M 69 59 61
589 F 82 56 58
590 M 74 54 45
591 F 80 41 51
592 M 74 53 56
593 F 71 51 58
594 M 61 53 61
595 F 81 63 59
596 M 73 53 52
597 F 79 48 54
598 M 74 70 61
599 F 82 48 45
600 M 65 45 56

use the first 160 of your observations for question A, B,C  and  use the last 40 for question D

a.What is a 90% confidence interval for the correlation between Math and Physic?

b. Conduct a simple regression analysis with Math as your dependent variable and Chem as your independent variable. Discuss what you see/observe.

c.Conduct a multiple regression analysis with both Physic and Chem as your predictors. Discuss what you see/observe. Having done this, evaluate (and discuss) whether the incorporation of Sex into your model would be useful.

In: Statistics and Probability

Below is a spreadsheet that has the annual return measured for 12 different stock investments. The...

Below is a spreadsheet that has the annual return measured for 12 different stock investments. The spreadsheet shows the average return and standard deviation of the return for the past 15 years. Use this spreadsheet and spreadsheet commands to do the following:

Compute the return for each year on a portfolio that contains an equal investment in all 12 securities.

Compute the 15-year average return and standard deviation of return for the portfolio that consists of all 12 securities with equally weighted investment.

Compute the correlation and covariance between the return on company #12 and the return on the equally-weighted portfolio. Hint: There is a spreadsheet command that does this calculation.

Compute the beta of Company #12 using the information you have collected.

Now using the beta you created for Company #12, compute the required rate of return using the Capital Asset Pricing Model (CAPM), assuming that the average market return is the return of your equally-weighted portfolio and the risk-free rate of return is 2.5%.

If you were told analysts estimate that Company #12 will have a 5% rate of return next year, would you buy the stock? Why or why not?

COMPUTE ALL CALCULATIONS IN AN EXCEL SPREADSHEET AND POST IT HERE, THANK YOU

Comp. #1 Comp. #2 Comp. #3 Comp. #4 Comp. #5 Comp. #6 Comp. #7 Comp. #8 Comp. #9 Comp. #10 Comp. #11 Comp. #12
Return Return Return Return Return Return Return Return Return Return Return Return
2012 3.60% -10.04% -1.38% 5.25% -3.50% 0.14% 5.33% -2.55% 14.18% 14.76% -3.35% 0.10%
2011 54.44% 23.22% 0.55% 15.35% 0.22% 22.32% 23.55% 23.00% 36.36% 42.15% 9.90% -0.10%
2010 -29.30% -18.92% -44.54% -22.24% -17.66% 11.87% -1.93% -5.68% -39.86% 6.04% 5.36% -9.57%
2009 -37.57% -11.88% -6.00% -13.93% -16.09% 6.23% -15.42% -55.35% -5.78% 9.63% 13.75% 33.93%
2008 -11.00% -11.64% -9.39% -4.00% -2.80% 12.18% 3.33% -3.33% 4.18% -4.76% -7.85% -5.33%
2007 7.11% 13.59% 0.52% 26.35% -6.06% 23.92% 22.90% 4.23% -46.36% 59.17% 6.02% -37.79%
2006 20.91% 18.92% -44.54% 2.24% -17.66% 11.87% 1.93% -5.68% 39.86% 6.04% 5.36% 9.57%
2005 16.02% 11.88% -6.00% -13.93% 16.09% 6.23% 15.42% 55.35% -5.78% -9.63% 13.75% 33.93%
2004 55.35% 23.14% 43.33% 23.33% 0.33% -1.08% -1.44% 38.53% 35.44% 9.40% -15.05% 49.56%
2003 -11.56% 23.00% -38.30% -3.53% 5.07% -6.58% -5.12% -13.43% -12.18% -24.68% -7.69% -37.39%
2002 11.52% 39.67% -28.46% -20.72% -6.22% -8.25% 22.70% -2.60% -32.87% -13.16% -34.55% -20.56%
2001 -0.23% -1.48% -51.99% 7.35% 16.54% 1.83% 32.25% 47.38% 11.10% 2.96% -51.00% -14.48%
2000 3.10% 13.56% -7.33% -11.03% 17.69% 44.92% 0.93% -3.72% -9.20% -4.87% 298.67% 6.04%
1999 -3.43% -7.16% 47.74% 2.39% 4.27% 31.57% 19.44% -3.90% 12.12% 53.37% -19.46% 62.66%
1998 31.48% 45.52% 53.49% 29.15% 58.33% 67.99% 25.12% 0.44% 26.83% 50.67% 40.62% 6.72%

In: Finance

Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production...

Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow:

Selling price

$

23

Expenses:

Variable

$

14

Fixed (based on a capacity of
105,000 tons per year)

6

20

Net operating income

$

3

Hrubec Products has just acquired a small company that manufactures paper cartons. This company will be treated as a division of Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 32,000 tons of pulp per year from a supplier at a cost of $23 per ton, less a 10% purchase discount. Hrubec’s president is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if an acceptable transfer price can be worked out.

Required:

For (1) below, assume the Pulp Division can sell all of its pulp to outside customers for $23 per ton.

1. If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 32,000 tons of pulp to the Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole?

For (2)–(4) below, assume that the Pulp Division is currently selling only 63,000 tons of pulp each year to outside customers at the stated $23 price.

2. What is the lowest acceptable transfer price from the perspective of the Pulp Division? What is the highest acceptable transfer price from the perspective of the Carton Division? What is the range of acceptable transfer prices (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 32,000 tons of pulp next year?

3. If the Pulp Division does not meet the $19 price, what will be the effect on the profits of the company as a whole?

4. Refer to (3) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 32,000 tons of pulp each year from the Pulp Division at $23 per ton. What will be the effect on the profits of the company as a whole?

In: Accounting

What does it mean to retire a debt? Then calculate how to do the following (show...

What does it mean to retire a debt? Then calculate how to do the following (show your work): Hospital First has a fusion intervention center and they invested $106,944 for five years to retire a debt. Assuming the clinic can invest at 6% compounded annually, how much is the debt Hospital First needs to retire?

Distinguish the accounts receivable from the revenue cycle.

Explain the three laws that govern accounts receivable. Explain how you measure revenue cycle performance.

What are the different methods used to value inventory and what do they mean?

How do you evaluate effective inventory management performance?

Which of the 7 common methods of reimbursement to providers do you feel is best for providers today? Explain why you have chosen it over the other six.

In: Accounting

Zachary Trust Corporation has two service departments: actuary and economic analysis. Zachary also has three operating...

Zachary Trust Corporation has two service departments: actuary and economic analysis. Zachary also has three operating departments: annuity, fund management, and employee benefit services. The annual costs of operating the service departments are $668,200 for actuary and $1,002,300 for economic analysis. Zachary uses the direct method to allocate service center costs to operating departments. Other relevant data follow.

Operating Costs* Revenue
Annuity $ 690,000 $ 681,000
Fund management 1,090,000 1,380,000
Employee benefit services 790,000 1,280,000

*The operating costs are measured before allocating service center costs.


Required

  1. Use operating costs as the cost driver for allocating service center costs to operating departments.

  2. Use revenue as the cost driver for allocating service center costs to operating departments.

In: Accounting

Required information [The following information applies to the questions displayed below.] In 2021, the Westgate Construction...

Required information

[The following information applies to the questions displayed below.]

In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows:

2021 2022 2023
Cost incurred during the year $ 2,204,000 $ 3,192,000 $ 2,424,400
Estimated costs to complete as of year-end 5,396,000 2,204,000 0
Billings during the year 2,140,000 3,256,000 4,604,000
Cash collections during the year 1,870,000 3,200,000 4,930,000


Westgate recognizes revenue over time according to percentage of completion.

Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

In: Accounting

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a...

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,480,000. During 2021, costs of $2,160,000 were incurred with estimated costs of $4,160,000 yet to be incurred. Billings of $2,660,000 were sent, and cash collected was $2,410,000.

In 2022, costs incurred were $2,660,000 with remaining costs estimated to be $3,840,000. 2022 billings were $2,910,000 and $2,635,000 cash was collected. The project was completed in 2023 after additional costs of $3,960,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

Required:
1. Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method.

In: Accounting