High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 44,000 Units sold 39,000 Selling price per unit $ 84 Selling and administrative expenses: Variable per unit $ 3 Fixed (per month) $ 570,000 Manufacturing costs: Direct materials cost per unit $ 17 Direct labor cost per unit $ 8 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 880,000 Management is anxious to assess the profitability of the new camp cot during the month of May. Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for May
In: Accounting
|
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: |
| Beginning inventory | 0 | |
| Units produced | 43,000 | |
| Units sold | 38,000 | |
| Selling price per unit | $79 | |
| Selling and administrative expenses: | ||
| Variable per unit | $3 | |
| Fixed per month | $ | 565,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $17 | |
| Direct labor cost per unit | $9 | |
| Variable manufacturing overhead cost per unit | $3 | |
| Fixed manufacturing overhead cost per month | $ | 731,000 |
|
Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May. |
| Required: |
| 1. | Assume that the company uses absorption costing. |
| a. | Determine the unit product cost. |
| b. |
Prepare an income statement for May. |
| 2. | Assume that the company uses variable costing. |
| a. | Determine the unit product cost. |
| b. |
Prepare a contribution format income statement for May. |
In: Accounting
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 50,000 | |
| Units sold | 45,000 | |
| Selling price per unit | $ | 81 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 4 |
| Fixed (per month) | $ | 562,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 16 |
| Direct labor cost per unit | $ | 8 |
| Variable manufacturing overhead cost per unit | $ | 2 |
| Fixed manufacturing overhead cost (per month) | $ | 950,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 47,000 | |
| Units sold | 42,000 | |
| Selling price per unit | $ | 81 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 2 |
| Fixed (per month) | $ | 562,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 17 |
| Direct labor cost per unit | $ | 7 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 940,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
Beginning inventory 0
Units produced 44,000
Units sold 39,000
Selling price per unit $ 81
Selling and administrative expenses:
Variable per unit $ 2
Fixed (per month) $ 566,000
Manufacturing costs:
Direct materials cost per unit $ 15
Direct labor cost per unit $ 7
Variable manufacturing overhead cost per unit $ 2
Fixed manufacturing overhead cost (per month) $ 704,000
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
Los Angeles County has the worst urban air quality across all major metropolitan areas in the United States. Assume the California Air Resources Board is considering whether to set a uniform emission standard or a regionally-based emission standard, where one standard is set for Los Angeles County and another for the rest of the state. MSB, MSC, and MCE of abatement for the two regions have been estimated as follows:
MSB (LA) = 500 - 0.75A
MSC (rest) = 150 - 0.25A
MSC (all) = 0.5A
MCE (all) = 0.01A
*Note: MSC (all) and MCE (all) apply to both regions.
a. Find the numerical value of the efficient level of abatement for each region. Graph the MSB (LA), MSB (rest), and MSC (all) functions on the same diagram showing this result.
b. Based on these results, are the differentiated (higher) standards for LA supported on efficiency grounds? Why?
c. A uniform abatement standard is also being considered across the State of California of 300 units. Does this policy lead to over-regulation or under-regulation for LA? Does this policy lead to over-regulation or under-regulation for the rest of the state?
In: Economics
1. Using ethics as a major guide for making and evaluating business decisions is only popular in the United States.
a. true
b. false
2. Ethical economics involves:
A. Transparency of underlying assumptions and the values embedded
within any economic theory and policy
prescriptions.
B. Disclosure of any/all conflicts of interests or personal benefit
of economic practitioners.
C. Evaluating economic harm profiles to minimize the levels and
types of harm done to the least amount of people.
D. Limiting economic models to known facts, available resources,
and reasonable value judgments when solving real-life problems.
3. Feminist economics:
A. Primarily considers gender inequality in terms of market
inefficiencies, thereby an important policy goal is to improve
market efficiency.
B. Focuses not only on paid labor markets but also unpaid labor
that takes place outside or hidden within market
dynamics.
C. Focuses on the natural differences between men and women and how
economies can—and should—be structured to accommodate these natural
differences.
D. Combines a wide range of approaches such as human capabilities,
environmental ecology, microfinance practices, and provisioning
activities.
In: Economics
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 44,000 | |
| Units sold | 39,000 | |
| Selling price per unit | $ | 84 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 563,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 14 |
| Direct labor cost per unit | $ | 9 |
| Variable manufacturing overhead cost per unit | $ | 4 |
| Fixed manufacturing overhead cost (per month) | $ | 792,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:
| Beginning inventory | 0 | |
| Units produced | 35,000 | |
| Units sold | 30,000 | |
| Selling price per unit | $ | 77 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 3 |
| Fixed (per month) | $ | 569,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 16 |
| Direct labor cost per unit | $ | 8 |
| Variable manufacturing overhead cost per unit | $ | 3 |
| Fixed manufacturing overhead cost (per month) | $ | 700,000 |
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Determine the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Determine the unit product cost.
b. Prepare a contribution format income statement for May.
In: Accounting
126) Which of the following statements is true?
126) A) The discount window in the United States is operated by Citibank. B) The discount window is accessible only to well-performing banks. C) When banks borrow from the discount window, it is an admission of trouble. D) The discount window is operated only in periods of economic expansion.
\127) The ________ is the interest rate that banks charge each other for overnight loans.
127) A) discount window interest rate B) spot interest rate C) federal funds rate D) subsidized banking interest rate
128) The funds being lent in the federal funds market are:
128) A) investments of foreign firms. B) bank deposits of domestic households. C) reserves at the Fed. D) tax revenue earned by the federal government.
129) The demand curve for reserves is:
129) A) vertical. B) downward sloping. C) upward sloping. D) horizontal.
130) If a bank has $6 billion in reserves and loans $2 billion to another bank, then the total quantity of reserves demanded is:
130) A) $4 billion. B) $2 billion. C) $8 billion. D) $6 billion.
In: Economics