[HA260] Hospitality Managerial Accounting

Assignment #6

Name: _____________________

[Note] You are required to provide the process for full-credit consideration. If you provide just final answers, you will get credits up to 50% of full-credit.

Holly’s Hotel budgeted 800 room sales for the week ended April 24. The estimated average price per room was $18.50. The actual average price per room was 10 percent greater than anticipated, while room sales in units were 10 percent less than forecasted.

Complete the following table for the Hotel’s revenue variance analysis.

Calculate the budget variance.

Calculate the price variance.

Calculate the volume variance.

Calculate the price-volume variance.

For the same week, Holly’s Hotel’s head housekeeper, based on the work standard, budgeted 400 hours for room attendants to clean the rooms sold. The actual hours worked totaled 380. The estimated average wage rate for the attendants is $4.00 per hour. The wages paid totaled $1,444.

Complete the following table for the Hotel’s expense variance analysis.

Calculate the ATAO (Allowable time for actual output).

How many rooms can a room attendant clean per hour?

Given that 720 rooms had to be cleaned, how much time should have been spent in hours (ATAO)?

Calculate the efficiency variance.

What does the efficiency variance tell you? Were the room attendants efficient?

Calculate the rate variance.

To try to determine whether the composition of the earth’s atmosphere has changed over time, scientists can examine the gas in bubbles trapped inside ancient amber.  (That’s the plot of Jurassic Park.) Assume that the following 9 measures are a random sample from the late Cretaceous era (75 to 95 million years ago). The data represent the percent of nitrogen in each sample.

63.4     65.0     64.4     63.3     54.8     64.5     60.8     49.1     51.0

You asked to conduct a hypothesis test to determine whether the mean is less than 61.

1. Conduct a hypothesis test using a 95% confidence interval.

a. What value for t will you use?

b. What is the sample mean?

c. What is the sample standard deviation?

d. What is the standard error?

e. Calculate the confidence interval.

f. What conclusion will you draw about the null hypothesis and why.

2. Conduct a hypothesis test using the traditional method.

a. Choose a level of significance (a)

b. Draw a t-diagram in which you place the mean at zero and t-value at which you will reject the null hypothesis. Clearly label the reject and do not reject region.

c. Calculate the test statistic using: x̅ -  μ) / SE where SE =  . s= sample standard deviation.

d. Place the value you get for t on your diagram. Does it fall in the reject or do not reject region?

e. What is your conclusion? State it in words in the context of this problem.

f. Calculate the p-value. Compare the p-value to . What conclusion will you draw and why?

g. Your conclusion in e and f should be the same. If not look over your work.

QUESTION 19

1. Let X and Y be consumption goods and let K be a capital good, and assume that these are the only three goods produced in the economy. True or false: To produce today more X requires that less Y or K today be produced, but to produce more K today does not require that less X or less Y be produced.

   	A.	True
   	B.	False
   	C.	DO NOT CHOOSE THIS ANSWER.
   	D.	DO NOT CHOOSE THIS ANSWER.

1 points   

QUESTION 20

1. Which of the following circumstances is most likely to decrease the elasticity of demand for Cory’s Checker Taxicab Service in New York City?

   	A.	New Yorkers' incomes fall.
   	B.	The number of Uber and Lyft drivers in Manhattan increases.
   	C.	A sudden and unexpected heavy rainfall starts in New York City.
   	D.	New Yorkers come to get greater enjoyment from driving their own cars and motorcycles to their destinations within New York City. QUESTION 17 Which of the following is best explained by the fact that people make decisions at the margin? A. If Molly has a comparative advantage over Jacob at producing bananas, then Jacob has a comparative advantage over Molly at producing fish. B. A mother who would, if she had to, sacrifice her life to save that of her child will not donate a kidney to a stranger. C. Each individual has preferences that are transitive. D. Rachel, who is seated in a park on a beautiful day in Fairfax, refuses to buy a bottle of fresh air from Ricky, who - having realized that everyone in constant need of air - has decided to try to earn his fortune by selling bottles of this necessary commodity.

C++.

Write a program that asks the user to enter a single word and outputs the series of ICAO words that would be used to spell it out. The corresponding International Civil Aviation Organization alphabet or ICAO words are the words that pilots use when they need to spell something out over a noisy radio channel.

See sample screen output for an example:

 
    Enter a word: program    
    Phonetic version is: Papa Romeo Oscar Golf Romeo Alpha Mike

The specific requirement is that you write the program so that it determines the word corresponding to a specified letter using a Switch statement instead of an If structure.
As a point of reference, the ICAO alphabet is included below:

 
        A       Alpha           N       November
        B       Bravo           O       Oscar
        C       Charlie         P       Papa
        D       Delta           Q       Quebec
        E       Echo            R       Romeo
        F       Foxtrot         S       Sierra
        G       Golf            T       Tango
        H       Hotel           U       Uniform
        I       India           V       Victor
        J       Juliet          W       Whiskey
        K       Kilo            X       X-Ray
        L       Lima            Y       Yankee
        M       Mike            Z       Zulu

HINT: You may consider using character (char) array related processing or if you prefer to work with strings, determine the length of the variable string word and iterate through each letter in the string word using a for loop with a nested switch statement that has the necessary case labels matching the ICAO alphabets. Suggest converting all letters to uppercase to match the ICAO alphabet format.

Be sure to use proper formatting and appropriate comments in your code. Provide appropriate prompts to the user. The output should be clearly labeled and neatly formatted.

Promoting the Financial Planning Cruise to Better Horizons Credit Union Members

Write a sales message to Better Horizons members to promote the financial planning cruise. Feel free to add additional details (i.e., price and dates for the cruise).

Must be Persuasive!!!

Scenario: Christine Russo works at Better Horizons and is developing several new services the credit union could offer. One idea is for credit union members to take a five-day cruise to the Bahamas. Two afternoons of the cruise will be devoted to financial planning workshops, including choices such as retirement planning, trusts and estates, insurance, charitable giving, taxes, and college savings. Also, a finance boot camp for teenagers will provide basic information about savings and checking accounts, loans, and budgeting.

In another initiative, Christine wants to set up a new rewards program for credit union members who use their Better Horizons debit or credit cards. Each purchase with the debit or credit card will contribute to their total reward points, which customers can redeem for brand-name merchandise, hotel accommodations, airline tickets, cruises, and other travel options (detailed in an online and paper merchandise and travel catalog). Members get one point for each dollar spent on their credit cards and one point for every two dollars spent on their debit cards. One advantage of the program is that points can be combined across accounts. So, family members Page 331or friends who are members of the credit union can transfer their points to one another’s accounts and more quickly gain rewards. The program involves no fee, and members with the cards are automatically enrolled in the program.

2. Explain the roles of people and information technology in providing quality service. How does the Ritz carlton Hotel Group use employees and information technology for quality service? Give examples.

3. Discuss how either good or poor quality affects you personally as a consumer. Describe experiences in which your expectations were a. Met b. Exceeded c. Not met. Did your experience change your regard for the organization and/or its products? Explain how.

4. High quality is not necessarily related to price. Drawing from your own knowledge and experience, provide examples where this a. May or b. May not be true.

5. Choose a product or service to illustrate in detail how several definitions of quality can apply simultaneously.

6. How can you internalize and practice quality at a personal level in your daily activities. Dive detailed examples.

7. Why should a company make it easy for customers to complain? Use an example that you personally experienced to describe in detail the features of an effective complaint Management process.

8. Many organizations, such as banks, cellphone providers and cable/satellite TV providers, offer significant incentives to attract new customers. However, existing customers rarely receive incentives to stay. Have you encountered any of these practices in your personal life? What are the implications, pro and con, of them? Give details.

9. Design a customer satisfaction questionnaire for high school students and their parents who take a campus visit and are considering applying to a university.

10. How should teams deal with slackers? How would you deal with them in the context of a student project team? Give details

Harrier Ltd began operations on 1 July 2016. During the following year, the company acquired a tract of land, demolished the building on the land and built a new factory. Equipment was acquired for the factory and, in March 2017, the factory was ready. A gala opening was held on 18 March, with the local parliamentarian opening the factory. The first items were ready for sale on 25 March.

During this period, the following inflows and outflows occurred.

Required
Using the information provided, determine what assets Harrier Ltd should recognise and the amounts at which they would be recorded.

Gibson Fabricators Corporation Gibson Fabricators Corporation manufactures a variety of parts for the automotive industry. The company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labour-hours. On the December 10, 2019, the company’s controller made a preliminary estimate of the predetermined overhead rate for 2020. The new rate was based on the estimated total manufacturing overhead cost of $2,475,000 and the estimated 52,000 total direct labourhours for 2020:

Predetermined overhead rate = $2,475,000/ 52,000 hours = $47.60 per direct labour-hour

This new predetermined overhead rate was communicated to top managers in a meeting on the December 11. The rate did not cause any comment because it was within a few pennies of the overhead rate that had been used during 2019. One of the subjects discussed at the meeting was a proposal by the production manager to purchase an automated milling machine centre built by Central Robotics. The president of Gibson Fabricators, Kevin Robinson, agreed to meet with the regional sales representative from Central Robotics to discuss the proposal. On the day following the meeting, Mr. Robinson met with Jay Warner, Central Robotics’ sales representative. The following discussion took place:

Robinson: Larry Winter, our production manager, asked me to meet with you since he is interested in installing an automated milling machine centre. Frankly, I am sceptical. You’re going to have to show me this isn’t just another expensive toy for Larry’s people to play with.

Warner: That shouldn’t be too difficult, Mr. Robinson. The automated milling machine centre has three major advantages. First, it is much faster than the manual methods you are using. It can process about twice as many parts per hour as your present milling machines. Second, it is much more flexible. There are some up-front programming costs, but once those have been incurred, almost no setup is required on the machines for standard operations. You just punch in the code of the standard operation, load the machine’s hopper with raw material, and the machine does the rest.

Robinson: Yeah, but what about cost? Having twice the capacity in the milling machine area won’t do us much good. That centre is idle much of the time anyway.

Warner: I was getting there. The third advantage of the automated milling machine centre is lower cost. Larry Winters and I looked over your present operations, and we estimated that the automated equipment would eliminate the need for about 6,000 direct labour-hours a year. What is your direct labour cost per hour?

Robinson: The wage rate in the milling area averages about $21 per hour. Fringe benefits raise that figure to about $30 per hour.

Warner: Don’t forget your overhead.

Robinson: Next year the overhead rate will be about $48 per hour.

Warner: So including fringe benefits and overhead, the cost per direct labour-hour is about $78.

Robinson: That’s right.

Warner: Since you can save 6,000 direct labour-hours per year, the cost savings would amount to about $468,000 a year.

Robinson: That’s pretty impressive, but you aren’t giving away this equipment are you?

Warner: Several options are available, including leasing and outright purchase. Just for comparison purposes, our 60-month lease plan would require payments of only $300,000 per year.

Robinson: Sold! When can you install the equipment?

Shortly after this meeting, Mr. Robinson informed the company’s controller of the decision to lease the new equipment, which would be installed over the Christmas vacation period. The controller realised that this decision would require recalculation of the predetermined overhead rate for the year 2020 since the decision would affect both the manufacturing overhead and the direct labourhours for the year. After talking with both the production manager and the sales representative from Central Robotics, the controller discovered that in addition to the annual lease cost of $300,000, the new machine would also require a skilled technician/programmer who would have to be hired at a cost of $45,000 per year to maintain and program the equipment. Both of these costs would be included in factory overhead. There would be no other changes in total manufacturing overhead cost, which is almost entirely fixed. The controller assumed that the new machine would result in a reduction of 6,000 direct labour-hours for the year from the levels that had initially been planned. When the revised predetermined overhead rate for the year 2020 was circulated among the company’s top managers, there was considerable dismay.

Required: Part A – Report Write a report addressing the following questions to be submitted to the president of Gibson Fabricators, Kevin Robinson. 1. Recalculate the predetermined rate assuming that the new machine will be installed. Explain why the new predetermined overhead rate is higher (or lower) than the rate that was originally estimated for the year 2020.

2. The company has received a job order from Fairfield corporation. The estimated direct material costs for delivering the order is $45,800. The new machine will be used for this job. The expected labour cost will be $8,400 for 400 hours of direct labour. What will be the estimated total production cost of this job under the new predetermined rate?

Case 4-27.

Sharpton fabricators corporation manufactures a variety of parts for the automative industry. th company uses a jo order costing system with a plantwide predetermined overhead rate based on direct hours. On December 10, 2015, the company's controller made a preliminary estimates of the predetermined overhead rate for 2016. The new rate was based on the estimated total manufacturing overhead cost of $2,475,000 and the estimated 52,000 total direct labor - hours for 2016. Pretermined overhead rate = $2,475,000/ $2,000 hours = $47.60 per direct labor hour. The new predetermined overhead rate was communicated to top managers in a meeting on December 11. The rate did not cause any comment because it was within a few pennies of the overhead rate that had been used during 2015. One of the subject discussed at the meeting was a proposal by the manager to purchase an automated milling machine built by central robotics the president of sharpton fabricators, kevin reynolds, agreed to meet with the regional sales representative from central robotics to discuss proposal. one of the following meeting, Mr raynolds met with jay warner central robotics sales represntatives. the following took place

Reynolds: Larry winter, our production manager asked me to meet with you because he is interested in installing an automated milling machine, frankly, I am skeptical, you going to have to show me this isnt just another expenisve toy for larry's people to play with.

Warner: That should not be difficult Mr Reynolds. The automated mailiing machine has three major advantage. First, it is much faster than the manual method you are using.It can produce as fast as twice as many parts as per hour as your present milling machine. Second, it is much more flexible. there are some up front programming cost but once those have been incurred, almost no setup on the machine for standard operation. You just punch the code of the standard operation, load the machines hopper with raw material and the machine does the rest.

Reynolds : Yeah, but what about cost? having twice the capacity in the mailing machine area wont do us much good. That center is idle much of the time anyway.

Warner: I was getting there, the third advantage of the autoimated milling machine is lower cost. larry winters and i look over your present operations and we estimated that the automated equipment will eliminate the need for about 6,000 direct labor hours a year. What is your direct labor cost per hour.

Reynolds : The wage rate in the milling area avarage about $21 per hour. Fringe benefits raise that figure to about $30 per hour.

Warner : Dont forget the overhead

Reynolds : next year the overhead rate will be about $48 per hour

Warner : so including fringe benefit and overhead, the cost per direct labor hour is about $78

Reynolds: thats righ.

warner : Since you save 6,000 direct labor hours per year, the cost savings would amount to about $468,000 a year.

Reynlds: that's pretty impressive, but you arent giving away the equipment are you?

Warner : Several options are available, including leasing and outright purchase just for comprison purposes, our 60 - month lease plan would requoire payment of only $30,000 per year

Reynolds: sold! When can install the equipment?

Shortly after this meeting, Mr Raynolds informed the comapny controller of the decision to lease the new equipment, which would be installed over the christmas vacation period.The conroller realise that this decision would require a recomputation of the predetermined overhead rate for the year 2016 since the decision would affect both the manufacturing overhead and the direct labor hours for the year. after taking with both the production manager and the sales represntative from the centra robotic, .the controller discovered that in addition to the annual lease cost of $300,000, the new machine would also require a skilled technician/ programmer who would have to be hired at a cost of $45,000 per year to maintain and program the equipment. Both of these costs would be included in factory overhead. There would be no other changes in total manufacturing overhead cost, which is almost entirely fixed. The controller assumed that the new machine would result in a reduction of 6,000 direct labor-hours for the year from the levels that had initially been planned. When the revised predetermined overhead rate for the year 2016 was circulated among the company's top managers, there was considerable dismay.

Required:

1. Recompute the predetermined overhead rate assuming that the new machine will be installed. Explain why the new predetermined overhead rate is higher or lower than the rate that was originally estimated for the year 2016.

2. What effect (if any) would this new rate have on the cost of jobs that do not use the new automated milling machine

3 Why would managers be concerned about the new overhead rate?

4 After seeing the new predertermined overhead rate, the production manager admitted that he probably wouldn't be able to eliminate all of the 6,000 direct labor hours. He had been hoping to accomplish the reduction by not replacing workers who retire or quit, but that would not be possible. As a result, the real labor savings would be only about 2,000 hours - one worker. Given this additional information, evaluate the original decision to acquire the automated milling machine from central robotics.

Case 4-27.

Sharpton Fabricators Corporation manufactures a variety of parts for the automotive industry. th company uses a job order costing system with a plant wide predetermined overhead rate based on direct hours. On December 10, 2015, the company's controller made preliminary estimates of the predetermined overhead rate for 2016. The new rate was based on the estimated total manufacturing overhead cost of $2,475,000 and the estimated 52,000 total direct labor - hours for 2016. Predetermined overhead rate = $2,475,000/ $2,000 hours = $47.60 per direct labor hour. The new predetermined overhead rate was communicated to top managers in a meeting on December 11. The rate did not cause any comment because it was within a few pennies of the overhead rate that had been used during 2015. One of the subjects discussed at the meeting was a proposal by the manager to purchase an automated milling machine built by central robotics the president of Sharpton fabricators, Kevin Reynolds, agreed to meet with the regional sales representative from central robotics to discuss proposal. One of the following meetings, Mr. Reynolds met with jay Warner central robotics sales representatives. The following took place

Reynolds: Larry winter, our production manager asked me to meet with you because he is interested in installing an automated milling machine, frankly, I am skeptical, you going to have to show me this isn’t just another expensive toy for Larry’s people to play with.

Warner: That should not be difficult Mr. Reynolds. The automated mailing machine has three major advantages. First, it is much faster than the manual method you are using. It can produce as fast as twice as many parts as per hour as your present milling machine. Second, it is much more flexible. There are some up front programming cost but once those have been incurred, almost no setup on the machine for standard operation. You just punch the code of the standard operation; load the machines hopper with raw material and the machine does the rest.

Reynolds: Yeah, but what about cost? Having twice the capacity in the mailing machine area won’t do us much good. That center is idle much of the time anyway.

Warner: I was getting there; the third advantage of the automated milling machine is lower cost. Larry winters and i look over your present operations and we estimated that the automated equipment will eliminate the need for about 6,000 direct labor hours a year. What is your direct labor cost per hour?

Reynolds: The wage rate in the milling area average about $21 per hour. Fringe benefits raise that figure to about $30 per hour.

Warner: Don’t forget the overhead

Reynolds: next year the overhead rate will be about $48 per hour

Warner: so including fringe benefit and overhead, the cost per direct labor hour is about $78

Reynolds: that’s right.

Warner: Since you save 6,000 direct labor hours per year, the cost savings would amount to about $468,000 a year.

Reynolds: that's pretty impressive, but you aren’t giving away the equipment are you?

Warner: Several options are available, including leasing and outright purchase just for comparison purposes, our 60 - month lease plan would require payment of only $30,000 per year

Reynolds: sold! When can install the equipment?

Shortly after this meeting, Mr. Reynolds informed the company controller of the decision to lease the new equipment, which would be installed over the Christmas vacation period. The controller realizes that this decision would require a recomputation of the predetermined overhead rate for the year 2016 since the decision would affect both the manufacturing overhead and the direct labor hours for the year. After taking with both the production manager and the sales representative from the central robotic, .the controller discovered that in addition to the annual lease cost of $300,000, the new machine would also require a skilled technician/ programmer who would have to be hired at a cost of $45,000 per year to maintain and program the equipment. Both of these costs would be included in factory overhead. There would be no other changes in total manufacturing overhead cost, which is almost entirely fixed. The controller assumed that the new machine would result in a reduction of 6,000 direct labor-hours for the year from the levels that had initially been planned. When the revised predetermined overhead rate for the year 2016 was circulated among the company's top managers, there was considerable dismay.

Required:

(1) Recompute the predetermined overhead rate assuming that the new machine will be installed. Explain why the new predetermined overhead rate is higher or lower than the rate that was originally estimated for the year 2016.

(2) What effect (if any) would this new rate have on the cost of jobs that do not use the new automated milling machine?

(3) Why would managers be concerned about the new overhead rate?

(4) After seeing the new predetermined overhead rate, the production manager admitted that he probably wouldn't be able to eliminate all of the 6,000 direct labor hours. He had been hoping to accomplish the reduction by not replacing workers who retire or quit, but that would not be possible. As a result, the real labor savings would be only about 2,000 hours - one worker. Given this additional information, evaluate the original decision to acquire the automated milling machine from central robotics.