TB MC Qu. 9-315 Tharaldson Corporation makes ...
Tharaldson Corporation makes a product with the following standard costs:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost Per Unit | |||||||
| Direct materials | 6.5 | ounces | $ | 2.00 | per ounce | $ | 13.00 | ||
| Direct labor | 0.2 | hours | $ | 23.00 | per hour | $ | 4.60 | ||
| Variable overhead | 0.2 | hours | $ | 6.00 | per hour | $ | 1.20 | ||
The company reported the following results concerning this product in June.
| Originally budgeted output | 2,700 | units | |
| Actual output | 2,800 | units | |
| Raw materials used in production | 19,380 | ounces | |
| Purchases of raw materials | 21,400 | ounces | |
| Actual direct labor-hours | 500 | hours | |
| Actual cost of raw materials purchases | $ | 40,660 | |
| Actual direct labor cost | $ | 12,050 | |
| Actual variable overhead cost | $ | 3,100 | |
The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for June is:
In: Accounting
Table 1 below reports the present values (in £ million) of different investment projects at different interest rates in the future.
Table 1. Project NPVs.
| Future interest rate | |||||||
| Project | 3.0% | 3.5% | 4.0% | 4.5% | 5.0% | 5.5% | 6.0% |
| A | 76.21 | 72.26 | 68.61 | 65.23 | 62.09 | 59.18 | 56.48 |
| B | 78.81 | 74.2 | 69.98 | 66.12 | 62.57 | 59.31 | 56.31 |
| C | 80.36 | 75.41 | 70.9 | 66.78 | 63.03 | 59.59 | 56.44 |
| D | 78.81 | 74.33 | 70.22 | 66.44 | 62.97 | 59.76 | 56.81 |
| E | 84.24 | 77.18 | 71.01 | 65.58 | 60.79 | 56.55 | 52.78 |
| probability | 0.1 | 0.15 | 0.2 | 0.2 | 0.15 | 0.1 | 0.1 |
Calculate the expected present value of each project. Which project maximises the expected value? Would you choose to proceed with this one?
Calculate the maximin and the maximax criteria.
Calculate the minimax regret criterion. When would this criterion be applied?
Calculate the expected value of perfect information. What does it describe?
In: Statistics and Probability
. Table 1 below reports the present values (in £ million) of different investment projects at different interest rates in the future.
Table 1. Project NPVs
| Future interest rate | |||||||
| Project | 3.0% | 3.5% | 4.0% | 4.5% | 5.0% | 5.5% | 6.0% |
| A | 76.21 | 72.26 | 68.61 | 65.23 | 62.09 | 59.18 | 56.48 |
| B | 78.81 | 74.2 | 69.98 | 66.12 | 62.57 | 59.31 | 56.31 |
| C | 80.36 | 75.41 | 70.9 | 66.78 | 63.03 | 59.59 | 56.44 |
| D | 78.81 | 74.33 | 70.22 | 66.44 | 62.97 | 59.76 | 56.81 |
| E | 84.24 | 77.18 | 71.01 | 65.58 | 60.79 | 56.55 | 52.78 |
| probability | 0.1 | 0.15 | 0.2 | 0.2 | 0.15 | 0.1 | 0.1 |
Calculate the expected present value of each project. Which project maximises the expected value? Why would you choose to proceed with this one?
Calculate the maximin and the maximax criteria.
Calculate the minimax regret criterion. When would this criterion be applied?
Calculate the expected value of perfect information. What does it describe?
In: Statistics and Probability
You are studying the reaction of iodine with a ketone to produce iodoketone with the following equation:
I2 + ketone → iodoketone + H+ + I-
Data for initial rates and concentrations are given in the table below:
-d[I2]/dt [I2] [ketone] [H+]
mol-1 L s-1 M M M
7 x 10-5 5 x 10-4 0.2 1.0 x 10-2
7 x 10-5 3 x 10-4 0.2 1.0 x 10-2
1.7 x 10-5 5 x 10-4 0.5 1.0 x 10-2
5.4 x 10-5 5 x 10-4 0.5 3.2 x 10-2
| A.
0, 1, 0 |
|
| B.0, 1, 1 | |
| C.1, 1, 1 | |
| D.1, 2, 0 |
Calculate the average rate coefficient in te above question.
| A.0.003 | |
| B.0.013 | |
| C.0.025 | |
| D.0.034 |
In: Chemistry
Isadore’s Implements, Inc., manufactures pens and mechanical pencils often used for gifts. Overhead costs are currently allocated using direct labor-hours, but the controller has recommended an activity-based costing system using the following data:
| Cost Driver Volume | ||||||
| Activity | Cost Driver | Cost | Pencils | Pens | ||
| Setting up | Number of setups | $ | 102,000 | 22 | 29 | |
| Inspecting | Number of parts | 26,100 | 3 | 6 | ||
| Packing and shipping | Number of boxes shipped | 50,000 | 50,000 | 75,000 | ||
| Total overhead | $ | 178,100 | ||||
Required:
a. Compute the amount of overhead to be allocated to each product under activity-based costing. (Do not round intermediate calculations.)
b. Compute the amount of overhead to be allocated to each product using labor-hours as the allocation base. Assume that the number of labor-hours required to assemble each box is 0.2 for pencils and 0.2 for pens and that 50,000 boxes of pencils and 75,000 boxes of pens were produced during the period. (Do not round intermediate calculations.)
In: Accounting
A new nail salon business just opened, in their first week of business they decided that thy would conduct a promotion in which a customer's bill can be randomly selected to receive a discount. When a customer's bill is printed, a program in the cash register randomly determines whether the customer will receive a discount on the bill. The program was written to generate a discount with a probability of 0.2, that is, giving a discount to 20 percent of the bills in the long run. However, the owner is concerned that the program has a mistake that results in the program not generating the intended long-run proportion of 0.2.
(a) The owner selected a random sample of 100 bills and found that only 16 percent of them received discounts. The conditions for inference are met. Using the sample data collected by the owner, calculate a 95% confidence interval for the true proportion of bills that will receive a discount in the long run.
(b) Observing the value that you received in part a. Do you believe that the confidence interval provide convincing statistical evidence to indicate that the program is not working as intended?
In: Math
1- Use Heun’s method without iteration to solve
?2???2−0.5?+?=0
y(0) = 2 and y’(0) = 0 solve from x = 0 to 3 using h = 0.2 (step size) present y values as a table versus x values (50p)
Instructions about question 1: considering step size and interval for x it will not be reasonable to proceed through hand calculations. You may want to use excel or other software but you need to write down first 3 steps of the calculations (obtain y(0.2), y(0.4) and y(0.6) ) in detail showing all calculations. Rest of the y values can be calculated using a software and tabulated (this is valid for hand calculations too provide calculations for first 3 steps and present the values as a table). You need to provide the code or excel file for the software that you used for calculation.......please sir (with explanation,step by step and calculation)please sir must
In: Civil Engineering
This question is based on Heckscher-Ohlin (HO) Model.
Suppose two countries, Farmland and Techland, use only capital and labor to produce two goods, Grain (G) and Cars (C). Farmland has 2,050 units of capital and 916 units of labor, and Techland has 816 units of capital and 270 units of labor. In Techland, there are 366 units of capital and 135 units of labor employed in the Grain industry. In Farmland, there are 926 units of capital and 618 units of labor employed in the Grain industry.
A. Which country is labor-abundant? Which country is capital-abundant? In Techland which industry is labor-intensive and why?
B. Suppose that Farmland and Techland do not engage in international trade. Assuming the countries have identical preferences, which country would have the cheaper relative price of Grain?
C. Now suppose the two countries trade with one another. What will happen to the relative price of Grain in Farmland? What is the effect of free trade on labor and capital owners in Farmland?
D. Now suppose, Cars use 4 units of capital for each worker (KC /LC = 4 or KC = 4LC) whereas Grains use 0.2 units of capital for each worker (KG /LG = 0.2 or KG = 0.2 LG). There are 200 workers and 200 units of capital in the economy. Solve for labor and capital in each industry. (hint: KC + KG = 200 and LC + LG = 200. First solve for or LC and LG using these two equations and then for KC and KS.)
E. Next, suppose number of workers increase to 250 because of immigration, keeping total capital fixed at 200. Solve for labor and capital used in each industry. Which theorem is consistent with this result? Why and why not?
In: Economics
This question is based on Heckscher-Ohlin (HO) Model.
Suppose two countries, Farmland and Techland, use only capital and labor to produce two goods, Grain (G) and Cars (C). Farmland has 2,050 units of capital and 916 units of labor, and Techland has 816 units of capital and 270 units of labor. In Techland, there are 366 units of capital and 135 units of labor employed in the Grain industry. In Farmland, there are 926 units of capital and 618 units of labor employed in the Grain industry.
A. Which country is labor-abundant? Which country is capital-abundant? In Techland which industry is labor-intensive and why?
B. Suppose that Farmland and Techland do not engage in international trade. Assuming the countries have identical preferences, which country would have the cheaper relative price of Grain?
C. Now suppose the two countries trade with one another. What will happen to the relative price of Grain in Farmland? What is the effect of free trade on labor and capital owners in Farmland?
D. Now suppose, Cars use 4 units of capital for each worker (KC /LC = 4 or KC = 4LC) whereas Grains use 0.2 units of capital for each worker (KG /LG = 0.2 or KG = 0.2 LG). There are 200 workers and 200 units of capital in the economy. Solve for labor and capital in each industry. (hint: KC + KG = 200 and LC + LG = 200. First solve for or LC and LG using these two equations and then for KC and KS.)
E. Next, suppose number of workers increase to 250 because of immigration, keeping total capital fixed at 200. Solve for labor and capital used in each industry. Which theorem is consistent with this result? Why and why not?
In: Economics
MANAGERIAL CHALLENGE Why Charge $35 per Bag on Airline Flights? American Airlines (AA) announced that it would immediately begin charging $35 per bag on all AA flights, not for extra luggage but for the first bag! Crude oil had crushed from $54 to $20 per barrel in the previous 3 months. AA’s new baggage policy applied to all ticketed passengers except first class and business class. On top of incremental airline charges for sandwiches and snacks introduced the previous year, this new announcement stunned the travel public. Previously, only a few deep discount U.S. carriers with very limited route structures such as People Express had charged separately for both food and baggage service. Since American Airlines and many other major carriers had belittled that policy as part of their overall marketing campaign against deep discounters, AA executives faced a dilemma. DEMAND AND SUPPLY: A REVIEW Demand and supply simultaneously determine equilibrium market price (Peq). Peq equates the desired rate of purchase Qd/t with the planned rate of sale Qs/t. Both concepts address intentions—that is, purchase intentions and supply intentions. Demand is therefore a potential concept often distinguished from the transactional event of “units sold.” In that sense, demand is more like the potential sales concept of customer traffic than it is the accounting receivables concept of revenue from completing an actual sale. Analogously, supply is more like scenario planning for operations than it is like actual Jet fuel surcharges had recovered the year-over-year average variable cost increase for jet fuel expenses, but incremental variable costs (the marginal cost) remained uncovered. A quick back-of-the-envelope calculation outlines the problem. If total variable costs for a 500-mile flight on a 180-seat 737-800 rise from $22,000 in 2007 Q2 to $36,000 in 2008 Q2 because of $14,000 of additional fuel costs, then competitively priced carriers would seek to recover $14,000/180 = $78 per seat in jet fuel surcharges. The average variable cost rise of $78 would be added to the price for each fare class. For example, the $188 Super Saver airfare restricted to 14-day advance purchase and Saturday night stay
overs would go up to $266. Class M airfares requiring 7-day advance purchase but no Saturday stay overs would rise from $289 to $367. Full coach economy airfares without purchase restrictions would rise from $419 to $497, and so on. The problem was that by 2008 Q2, the marginal cost for jet fuel had risen to approximately $1 for each pound transported 500 miles. Carrying an additional 170-pound passenger in 2007 had resulted in $45 of additional fuel costs. By May 2008, the marginal fuel cost was $170 – $45 = $125 higher! So, although the $78 fuel surcharge was offsetting the accounting expense increase when one averaged in cheaper earlier fuel purchases, additional current purchases were much more expensive. It was this much higher $170 marginal cost that managers realized they should focus upon in deciding upon incremental seat sales and deeply discounted prices. And similarly, this marginal $1 per pound for 500 miles became the focus of attention in analyzing baggage cost. A first suitcase was traveling free under the prior baggage policy as long as it weighed less than 42 pounds. But that maximum allowed suitcase imposed $42 of marginal cost in May 2008. Therefore, in mid-2008, American Airlines (and now other major carriers) announced a $35 baggage fee for the first bag in order to cover the marginal cost of the representative suitcase on AA, which weighs 25.4 pounds.
Discussion Questions:
a. How should the airline respond when presented with an overweight bag (more than 42 pounds)?
b. Make a list of some of the issues that will need to be resolved if American Airlines decides to routinely charge different prices to customers in the same class of service?
c. What would you do if you were the CEO of AA? Define and justify your Pricing strategy.
In: Economics