For Q. no. 47-50 please select “A” for True and select “B” for False
In: Economics
4.3) General Hospital, a not-for-profit acute care facility, has estimated the following costs for its inpatient services:
Fixed costs $10,000,000
Variable cost per inpatient day $200
The hospital expects to have 15,000 inpatient days next year.
a.What is the hospital's underlying cost structure?
b.What are the hospital's expected total costs?
c.What are the hospital's estimated total costs at 12,500 inpatient days? At 17,500 inpatient days?
d.What is the average cost per inpatient day at 12,500, 15,000, and 17,500 inpatient days?
(If using equations or formulas please provide them.)
In: Finance
Tom, the only steel drum manufacturer in Narnia, can sell a single drum for $30. However, for every extra drum he wants to sell, he is forced to reduce the price (for all his customers) by $2. The total fixed costs in his workshop are $15, and the variable cost of the first drum produced is $25. For each extra drum thereafter, the cost drops by $5 up to, and including, the fifth drum. After that, the cost of each extra drum increases by $5.
What is Tom’s profit-maximizing output, price, and total profit or
loss?
Output:
Price: $
Profit/loss: $
In: Economics
Pareto Chart and A report summarizing the costs, percent of total, and percent of sales by appraisal, prevention, internal failure, and external failure cost of quality categories.Cost of Quality Report for a Manufacturing Company
The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an The study of employee effort and other business records to determine the cost of activities.activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows:
Required:
1. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value added activities.
| Activity | Activity Cost | Cost of Quality Classification | VA/NVA | |
| Correcting invoice errors | $19,080 |
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| Disposing of incoming materials with poor quality | 15,900 |
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| Disposing of scrap | 41,340 |
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| Expediting late production | 34,980 |
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| Final inspection | 22,260 |
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| Inspecting incoming materials | 6,360 |
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| Inspecting work in process | 34,980 |
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| Preventive machine maintenance | 22,260 |
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| Producing product | 104,940 |
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| Responding to customer quality complaints | 15,900 |
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| Total | $318,000 |
2. On paper or in a spreadsheet program, prepare a Pareto chart for each of the activities listed above. Answer the following:
What type of chart is a Pareto chart?
Which activity appears first, in order from left to
right?
3. Use the activity cost information to determine the percentages of total department costs that are prevention, appraisal, internal failure, external failure, and not The cost associated with controlling quality (prevention and appraisal) and failing to control quality (internal and external failure)costs of quality. If required, round percentages to one decimal place.
| Quality Cost Classification |
Activity Cost |
Percent of Total Department Cost |
||
| Prevention | $ | % | ||
| Appraisal | % | |||
| Internal failure | % | |||
| External failure | % | |||
| Not a cost of quality | % | |||
| Total | $ | % | ||
4. Determine the percentages of total department costs that are value-added and non-value-added. If required, round percentages to one decimal place.
Activity Cost |
Percent of Total Department Cost |
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| Value-added | $ | % | ||
| Non-value-added | % | |||
| Total | $ | % | ||
5. The department has 40% of its total costs as
Lead Time
Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly, final assembly, testing, and shipping. In the PC board assembly operation, a number of individuals are responsible for assembling electronic components into printed circuit boards. Each operator is responsible for soldering components according to a given set of instructions. Operators work on batches of 50 printed circuit boards. Each board requires 4 minutes of board assembly time. After each batch is completed, the operator moves the assembled boards to the final assembly area. This move takes 11 minutes to complete.
The final assembly for each stereo unit requires 20 minutes and is also done in batches of 50 units. A batch of 50 stereos is moved into the test building, which is across the street. The move takes 20 minutes. Before conducting the test, the test equipment must be set up for the particular stereo model. The test setup requires 30 minutes. The units wait while the setup is performed. In the final test, the 50-unit batch is tested one at a time. Each test requires 10 minutes. The completed batch, after all testing, is sent to shipping for packaging and final shipment to customers. A complete batch of 50 units is sent from testing to shipping. The Shipping Department is located next to testing. Thus, there is no move time between these two operations. Packaging and labeling requires 9 minutes per unit.
1. Determine the amount of value-added and non-value-added lead time and the value-added ratio in this process for an average stereo unit in a batch of 50 units. Categorize the non-value-added time into wait and move time. Round the percentage to one decimal place.
| Value-added lead time | min. | ||
| Non-value-added lead time: | |||
| Wait time lead time | min. | ||
| Move time lead time | min. | ||
| Total non-value-added lead time | min. | ||
| Total lead time | min. | ||
| Value-added ratio (as a percent) | % | ||
2. Move time in this process could best be reduced by:
a. Doing nothing.
b. Changing the layout from a process orientation to a product orientation.
c. Increasing batch sizes.
d. Eliminating the testing step.
e. Hiring more workers.
In: Operations Management
Variable Cost Methodof Product Pricing
Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 cell phones are as follows:
| Variable costs per unit: | Fixed costs: | |||||||
| Direct materials | $150 | Factory overhead | $350,000 | |||||
| Direct labor | 25 | Selling and admin. exp. | 140,000 | |||||
| Factory overhead | 40 | |||||||
| Selling and administrative expenses | 25 | |||||||
| Total variable cost per unit | $240 | |||||||
Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000.
a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones.
| Total variable cost | $ |
| Variable cost amount per unit | $ |
b. Determine the variable cost markuppercentage
for cellular phones. Round to two decimal places.
%
c. Determine the selling price of cellular
phones. If required, round to the nearest dollar.
$per cellular phone
In: Economics
A Java program that solves a real-world problem The remaining amount (balance) for a prepaid cellular phone, is computed by subtracting the cost of the phone usage from the original phone load. The phone usage is based only on the total cost of text messages and phone calls. The cost of text messages is determined from the number of text messages sent and the cost of phone calls is determined from the number of minutes of calls made. ● Based from the data, write a java program that would compute for the remaining balance on the cellphone load of a subscriber. Let him enter values for the cellphone load, cost per text, cost per minute, number per messages and calls in minutes. ● From the subscriber’s inputs, your java program should be able to display the cost of messages, cost of calls, total usage and remaining balance of the cellphone load. Formula Hint: Use the concept of addition, subtraction and multiplication Depicted below are sample outputs when the program is executed.?
In: Computer Science
Hayes Electronics stocks and sells a particular brand of personal computer. It costs the firm $450 each time it places an order with the manufacturer for the personal computers. The cost of carrying one PC in inventory for a year is $170. The store manager estimates that total annual demand for the computers will be 1,200 units, with a constant demand rate throughout the year. Orders are received within minutes after placement from a local warehouse maintained by the manufacturer. The store policy is never to have stockouts of the PCs. The store is open for business every day of the year except Christmas Day. Determine the following:
The optimal order quantity per order
The minimum total annual inventory costs
The optimal number of orders per year
The optimal time between orders (in working days)
Hayes Electronics in Problem 1 assumed with certainty that the ordering cost is $450 per order and the inventory carrying cost is $170 per unit per year. However, the inventory model parameters are frequently only estimates that are subject to some degree of uncertainty. Consider four cases of variation in the model parameters: (a) Both ordering cost and carrying cost are 10% less than originally estimated, (b) both ordering cost and carrying cost are 10% higher than originally estimated, (c) ordering cost is 10% higher and carrying cost is 10% lower than originally estimated, and (d) ordering cost is 10% lower and carrying cost is 10% higher than originally estimated. Determine the optimal order quantity and total inventory cost for each of the four cases. Prepare a table with values from all four cases and compare the sensitivity of the model solution to changes in parameter values.
I need the answer for question 2.
In: Statistics and Probability
Exhibit 4
County Hospital Cost Allocation Data
Support Departments Housekeeping Direct Cost Space (Sq. Ft)
Housekeeping $500,000 8,000
General Administration $750,000 12,000
Maintenance $600,000 15,500
TOTAL SUPPORT DEPTS. $1,850,000 35,000
Patient Service Departments Direct Cost Space (sq. ft) revenues
Medicine $800,000 10,000 $970,000
Surgery $1,200,000 20,000 $3,600,000
Outpatient Adult $560,000 15,000 $720,000
Outpatient Pediatrics $470,000 12,000 $630,000
Total Patient Service Depts. $3,030,000 57,000 $5,920,000
County Hospital Totals $4,880,000 92,500 $5,920,000
27. Assume that managers want to allocate housekeeping costs to the patient service departments. What is the value of the housekeeping cost pool? (2 points)
8,000 sq feet
57,000 sq feet
$500,000
$1,850,000
Page 7 of 8
28. Assume that space will be the cost driver and that managers want to use the direct cost allocation method. What is the total amount for the cost driver? (2 points)
57,000 sq feet
35,500 sq feet
92,500 sq feet
None of the above
29. What is the appropriate allocation rate for the housekeeping cost pool if space is the cost driver and using the direct cost allocation method? (2 points)
$5.40 per sq foot
$14.08 per sq foot
$8.77 per sq foot
None of the above
30. Assuming that the cost driver for housekeeping costs is space and using the direct cost allocation method, what is the allocation of housekeeping costs to the Medicine Department? (2 points)
a. $ 87,720
b. $ 54,000
c. $ 140,800
d. None of the above
In: Accounting
Exercise 9-12 Working with More Than One Cost Driver [LO9-1, LO9-2, LO9-3]The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:
| Fixed Cost per Month | Cost per Course | Cost per Student |
|||||
| Instructor wages | $ | 2,960 | |||||
| Classroom supplies | $ | 270 | |||||
| Utilities | $ | 1,210 | $ | 80 | |||
| Campus rent | $ | 4,800 | |||||
| Insurance | $ | 2,300 | |||||
| Administrative expenses | $ | 3,800 | $ | 42 | $ | 7 | |
For example, administrative expenses should be $3,800 per month plus $42 per course plus $7 per student. The company’s sales should average $890 per student.The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below:
| Actual | ||
| Revenue | $ | 53,170 |
| Instructor wages | $ | 11,120 |
| Classroom supplies | $ | 16,860 |
| Utilities | $ | 1,940 |
| Campus rent | $ | 4,800 |
| Insurance | $ | 2,440 |
| Administrative expenses | $ | 3,835 |
Required: 1. Prepare the company’s planning budget for September.2. Prepare the company’s flexible budget for September.3. Calculate the revenue and spending variances for September.
In: Accounting
Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below:
| Work in Process—Grinding Department | |||
| Inventory, May 1 | 178,000 | Completed and transferred to the Mixing Department |
? |
| Materials | 724,040 | ||
| Conversion | 402,000 | ||
| Inventory, May 31 | ? | ||
The May 1 work in process inventory consisted of 50,000 pounds with $109,000 in materials cost and $69,000 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 306,000 pounds were started into production. The May 31 inventory consisted of 140,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method in its process costing system.
Required:
1. Compute the Grinding Department's equivalent units of production for materials and conversion in May.
2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.
3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May.
4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.
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In: Accounting