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 | 42,000 | |
| Units sold | 37,000 | |
| Selling price per unit | $ | 80 |
| Selling and administrative expenses: | ||
| Variable per unit | $ | 2 |
| Fixed (per month) | $ | 564,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $ | 16 |
| Direct labor cost per unit | $ | 7 |
| Variable manufacturing overhead cost per unit | $ | 2 |
| Fixed manufacturing overhead cost (per month) | $ | 714,000 |
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 | 49,000 | |
| Units sold | 44,000 | |
| Selling price per unit | $77 | |
| Selling and administrative expenses: | ||
| Variable per unit | $4 | |
| Fixed per month | $ | 567,000 |
| Manufacturing costs: | ||
| Direct materials cost per unit | $17 | |
| Direct labor cost per unit | $6 | |
| Variable manufacturing overhead cost per unit | $3 | |
| Fixed manufacturing overhead cost per month | $ | 784,000 |
|
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
21. According to the sticky-wage theory of the short-run aggregate supply curve, if workers and firms expected prices to rise by 3 percent, but instead prices rise by 1 percent, then a. employment and production rise. b. employment rises and production falls. c. employment falls and production rises. d. employment and production fall. 22. The aggregate demand and aggregate supply model implies monetary neutrality a. only in the short run. b. only in the long run. c. in both the short run and the long run. d. in neither the short run nor long run. 23. In the early 1930s in the United States, there was a a. large increase in output. In the early 1940s there was also a large increase in output. b. large increase in output. In the early 1940s there was a large decrease in output. c. large decrease in output. In the early 1940s there was a large increase in output. d. large decrease in output. In the early 1940s there was also a large decrease in output. 24. If households spend $90 of every $100 of after tax income, then the government purchases multiplier is a. 3 b. 5 c. 9 d. 10
In: Economics
Question 4: (Marks: 3)
The following table represents the percentage of teenagers in some selected countries who have used marijuana and the percentage who have used other drugs.
|
Percentage Who Have Used |
||
|
Country |
Marijuana x |
Other Illegal Drugs y |
|
Czech Republic |
22 |
4 |
|
Denmark |
17 |
3 |
|
England |
40 |
21 |
|
Finland |
5 |
1 |
|
Ireland |
37 |
16 |
|
Italy |
19 |
8 |
|
Northern Ireland |
23 |
14 |
|
Norway |
6 |
3 |
|
Portugal |
7 |
3 |
|
Scotland |
53 |
31 |
|
United States |
34 |
24 |
“I found a positive correlation for the data presented in the table relating the percentage of teenagers in various countries who have used marijuana and the percentage who have used other drugs. I concluded that using marijuana causes the use of other drugs.”
In: Statistics and Probability
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