1. Direct Materials, Direct Labor, and Reports budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances.Factory Overhead Cost Variance Analysis

   Mackinaw Inc. processes a base chemical into plastic. A detailed estimate of what a product should cost.Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 7,200 units of product were as follows:

   	Standard Costs		Actual Costs
   Direct materials	9,400 lb. at $5.20		9,300 lb. at $5.00
   Direct labor	1,800 hrs. at $16.70		1,840 hrs. at $16.90
   Factory overhead	Rates per direct labor hr.,
   	based on 100% of normal
   	capacity of 1,880 direct
   	labor hrs.:
   		Variable cost, $4.50	$8,020 variable cost
   		Fixed cost, $7.10	$13,348 fixed cost

   Each unit requires 0.25 hour of direct labor.

   Required:

   a. Determine the direct materials Price variance is the difference between the actual and standard prices, multiplied by the actual quantity.price variance, direct materials The cost associated with the difference between the standard quantity and the actual quantity of direct materials used in producing a commodity.quantity variance, and total direct materials The difference between actual cost and the flexible budget at actual volumes.cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Direct materials price variance	$	Favorable Unfavorable
   Direct materials quantity variance		Favorable Unfavorable
   Total direct materials cost variance	$	Favorable Unfavorable

   b. Determine the direct labor The cost associated with the difference between the standard rate and the actual rate paid for direct labor used in producing a commodity.rate variance, direct labor The cost associated with the difference between standard and actual hours of direct labor spent for producing a commodity.time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Direct labor rate variance	$	Favorable Unfavorable
   Direct labor time variance		Favorable Unfavorable
   Total direct labor cost variance	$	Favorable Unfavorable

   c. Determine variable factory overhead The difference between the actual variable overhead costs and the budgeted variable overhead for actual production.controllable variance, the fixed factory overhead The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual production achieved during the period.volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   Variable factory overhead controllable variance	$	Favorable Unfavorable
   Fixed factory overhead volume variance		Favorable Unfavorable
   Total factory overhead cost variance	$	Favorable Unfavorable

1)

Below is last month's income statement for Aday’s Taqueria:

The managers at ACME Factory have decided to classify costs as follows:

1.   All of Insurance, Rent, Advertising and Depreciation as Fixed Costs.

2.   All of Food and Beverage Costs as Variable Costs.

3.   20% of Miscellaneous and Utilities as Fixed Costs and the rest as variable costs.

4.   $200 of office supplies as Fixed Costs and the rest as variable costs.

5.   Labor cost is to be distributed as 70% Variable Costs and 30% Fixed Costs.

Using the above information, calculate the following:

Total Variable Cost

Select one:

a. $14,840

b. $33,060

c. $16,100

d. $24,000

2)

Below is last month's income statement for Aday’s Taqueria:

The managers at ACME Factory have decided to classify costs as follows:

1.   All of Insurance, Rent, Advertising and Depreciation as Fixed Costs.

2.   All of Food and Beverage Costs as Variable Costs.

3.   20% of Miscellaneous and Utilities as Fixed Costs and the rest as variable costs.

4.   $200 of office supplies as Fixed Costs and the rest as variable costs.

5.   Labor cost is to be distributed as 70% Variable Costs and 30% Fixed Costs.

Using the above information, calculate the following:

Net Profit as Percentage of Sales

Select one:

a. 33.00%

b. 23.19%

c. 50.00%

d. 34.00%

3)

Aday’s Restaurant has the following income statement:

Calculate the food cost % and the beverage cost %

Select one:

a. Food Cost % = 40%
Beverage Cost % = 40%

b. Food Cost % = 60%
Beverage Cost % = 40%

c. Food Cost % = 30%
Beverage Cost % = 18%

d. Food Cost % = 50%
Beverage Cost % = 50%

We have been using the same set of data (Data Set One) in the notes to illustrate production and costs. I have provided Data Set One in both tables below. When costs were calculated in the notes, fixed costs were $200. By using the term fixed costs economists are only referring to the fact that a firm must pay this expense no matter how much output it produces or sells. An example of a fixed cost could be the rent a small store pays on the space it rents. The rent will be the same for the duration of the lease, no matter if the store sells I item or 500 items. It is helpful to know what will happen to costs if the price of the variable or fixed resource changes.

PROBLEM ONE - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the fixed input (the small stores rent) is not $200 but $220. A new lease may have caused the rent to increase. I have created Table 1 for you to put your answers in. Assume the price of the variable input, labor, is still $50 per unit.  When fixed costs change which other costs will increase? Compare the costs you calculate for table one to the costs calculated in the notes in chapter 7 to find the answer.

TABLE ONE FOR ANSWERS TO PROBLEM ONE

Problem Two - Using the information in data set one, which I have included in the table below, recalculate total cost, fixed cost, variable cost, marginal cost, average total cost, average variable cost and average fixed costs if the price of the variable input (which is labor in this example) is not $50 but $55. I have created Table 2 for you to put your answers in. Assume that fixed costs remain at $220.  When the price of a variable input changes which other costs will increase? Compare the costs you calculate for table two to the costs calculated in table one to find your answers.

TABLE TWO FOR ANSWERS TO PROBLEM TWO

PROBLEM THREE

What assumption is made concerning short-run production that causes the short-run cost curves to have their typical shapes?

PROBLEM FOUR

Why would this firm not produce 12 or less units of the its output?

Please show work so I can learn how the problem was solved

Cost of Production Report

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

Direct materials and conversion equivalent units of production for August.

Direct materials and conversion costs per equivalent unit for August.

Cost of goods finished during August.

Cost of work in process at August 31.

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

Feedback

a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials added in the process? How complete are the units in ending inventory with respect to materials? How compete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equivalent units. Are the number of equivalent units the same for materials and conversion?

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

Cost of Production Report The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: Work in process, August 1, 400 pounds, 60% completed $2,336* *Direct materials (400 X $4.7) $1,880 Conversion (400 X 60% X $1.9) $456 $2,336 Coffee beans added during August, 13,000 pounds 60,450 Conversion costs during August 25,340 Work in process, August 31, 700 pounds, 30% completed ? Goods finished during August, 12,700 pounds ? All direct materials are placed in process at the beginning of production. a. Prepare a cost of production report, presenting the following computations: Direct materials and conversion equivalent units of production for August. Direct materials and conversion costs per equivalent unit for August. Cost of goods finished during August. Cost of work in process at August 31. If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places. Morning Brew Coffee Company Cost of Production Report-Roasting Department For the Month Ended August 31 Unit Information Units charged to production: Inventory in process, August 1 400 Received from materials storeroom 13,000 Total units accounted for by the Roasting Department 13,400 Units to be assigned costs: Equivalent Units Whole Units Direct Materials (1) Conversion (1) Inventory in process, August 1 400 0 160 Started and completed in August 12,300 12,300 12,300 Transferred to finished goods in August 12,700 12,300 12,460 Inventory in process, August 31 700 700 210 Total units to be assigned costs 13,400 13,000 12,670 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for August in Roasting Department $ $ Total equivalent units 13,000 12,670 Cost per equivalent unit (2) $ $ Costs assigned to production: Direct Materials Conversion Total Inventory in process, August 1 $ 2,336 Costs incurred in August Total costs accounted for by the Roasting Department $ Cost allocated to completed and partially completed units: Inventory in process, August 1 balance $ To complete inventory in process, August 1 $ 0 $ Cost of completed August 1 work in process $ Started and completed in August Transferred to finished goods in August (3) $ Inventory in process, August 31 (4) Total costs assigned by the Roasting Department $ Feedback a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials added in the process? How complete are the units in ending inventory with respect to materials? How compete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equivalent units. Are the number of equivalent units the same for materials and conversion? b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent. Increase or Decrease Amount Change in direct materials cost per equivalent unit Decrease $ Change in conversion cost per equivalent unit Increase $

Cost of Production Report

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

1. Direct materials and conversion equivalent units of production for August.
2. Direct materials and conversion costs per equivalent unit for August.
3. Cost of goods finished during August.
4. Cost of work in process at August 31.

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

Feedback

a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. When are materials added in the process? How complete are the units in ending inventory with respect to materials? How compete are the units in ending inventory with respect to conversion? Materials and conversion cost needs to be allocated among the equivalent units. Are the number of equivalent units the same for materials and conversion?

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

Operating Budget, Comprehensive Analysis

Ponderosa, Inc., produces wiring harness assemblies used in the production of semi-trailer trucks. The wiring harness assemblies are sold to various truck manufacturers around the world. Projected sales in units for the coming five months are given below.

The following data pertain to production policies and manufacturing specifications followed by Ponderosa:

Finished goods inventory on January 1 is 900 units. The desired ending inventory for each month is 20 percent of the next month’s sales.

The data on materials used are as follows:

Inventory policy dictates that sufficient materials be on hand at the beginning of the month to satisfy 30 percent of the next month’s production needs. This is exactly the amount of material on hand on January 1.

The direct labor used per unit of output is one and one-half hours. The average direct labor cost per hour is $20.

Overhead each month is estimated using a flexible budget formula. (Activity is measured in direct labor hours.)

Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Activity is measured in units sold.)

The unit selling price of the wiring harness assembly is $110.

In February, the company plans to purchase land for future expansion. The land costs $68,000.

All sales and purchases are for cash. The cash balance on January 1 equals $62,900. The firm wants to have an ending cash balance of at least $25,000. If a cash shortage develops, sufficient cash is borrowed to cover the shortage and provide the desired ending balance. Any cash borrowed must be borrowed in $1,000 increments and is repaid the following month, as is the interest due. The interest rate is 12 percent per annum.

Required:

Prepare a monthly operating budget for the first quarter with the following schedules:

1. Sales budget

Feedback

See Cornerstone 8.1.

2. Production budget

Feedback

See Cornerstone 8.2.

3. Direct materials purchases budget

Feedback

See Cornerstone 8.3.

4. Direct labor budget. Round your answers to two decimal places, if required.

Feedback

See Cornerstone 8.4.

5. Overhead budget. Round your answers to two decimal places, if required.

Feedback

See Cornerstone 8.5.

6. Selling and administrative expense budget. Round your answers to the nearest cent, if required.

Feedback

See Cornerstone 8.9.

7. Ending finished goods inventory budget. Round intermediate calculations to the nearest cent. Round your answers to the nearest cent, if required.

Feedback

See Cornerstone 8.6.

8. Cost of goods sold budget

Feedback

See Cornerstone 8.7.

9. Budgeted income statement (ignore income taxes)

Feedback

See Cornerstone 8.10.

10. Cash budget
Enter a negative balance as a negative amount, and if an amount is zero enter "0".

Feedback

See Cornerstone 8.12.

Feedback

Partially correct

You are the senior human resource professional in a company and part of the senior strategic management team. The company is a service company that operates five teleprofit centers of 300 representatives each in the following Florida cities: Jacksonville, Orlando, Gainesville, Tampa, and Miami. The CEO has asked the senior strategic team to develop a HR plan that will allow the company to grow by two more teleprofit centers, which will be located in Jacksonville, Florida. Considering turnover, length of training, hiring success and learning curve for new employeesdevelop a reasonable “hire ahead” plan, which keeps newly trained employees ready to take the place of employees who leave or are promoted to other positions. The “hire ahead” plan must allow no more than 3% of the employee base in each of the new teleprofit centers to consist of newly trained employees. The following factors should be considered while developing the plan: • There is a human resource budget of $3.5M. • From the HR Budget, $200K will be dedicated for recruiting and selection. • Recruiting costs will increase by 30%, but the HR budget will not increase. • Recruiting will be conducted through Monster, CareerBuilder, Sologig, and in various print publications in the listed cities. • There will be 4500 applications received per month from the recruiting efforts. • Average turnover of the teleprofit representatives in the company is 7% per month. • Average turnover of the teleprofit representatives in Jacksonville is 5% per month. • New representatives receive two weeks of training in the classroom and two weeks of “side-by-side” training before they are on their own. • All trainer positions are exempt. • It takes nine months for a representative to be considered “fully trained”. SELECTION PROCESS Choose as many, or as few, of the following steps to create the selection process that applies best to your plan. All applicants who pass these steps will be hired. o Pre-screening- performed by a human resource assistant (nonexempt position) - cost of $20 per applicant; 95% of applicants prescreened are successful and are passed on to a recruiter. o Interviewing- completed by a recruiter (exempt position) - cost of $70 per applicant; 50% of applicants who are interviewed are successful and are then tested. o Employee testing- administered by a human resource assistant- cost of $30 per applicant; 50% of those tested are successful and will have a drug screening check done. o Drug screening- coordinated by a human resource assistant- cost of $35 per applicant; 95% will have a successful drug screening and then have a background check completed. o Background check- coordinated by a human resource assistant using a third party contracted provider- cost of $25 per applicant; 60% will have a successful background check and will be submitted to a credit check. o Credit check- conducted by a human resource assistant-cost of $35 per applicant; 60% will fail the credit check. ISSUES TO ADDRESS The following list represents a minimum guideline of issues that should be addressed:  How does this current hiring process affect the successful filling of current position vacancies?  What process changes can be made to help your budget concerns?  How many new employees have to be hired each month to meet the objectives of the “hire ahead” plan?  What is happening to the vacancy rate?  What is the vacancy rate?  What can be done to improve your vacancy rate?  What can be done to understand the turnover rate?  What can be done to improve the turnover rate?  How does this scenario affect the bottom line of the company?

I am having trouble answering these 2 questions. What is the vacancy rate? What is happening to the vacancy rate? can u please write 2 detail paragraphs for each question. (Thanks)

The supply curve of a price-taker firm in the short run is the:

Group of answer choices

firm's average variable cost curve.

portion of the firm's average total cost curve that lies above average variable cost curve.

portion of the firm's marginal cost curve that lies above average variable cost curve.

firm's marginal revenue curve.