peedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. Speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room.
The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates:
| Direct labor-hours required to support estimated output | 28,000 | |
| Fixed overhead cost | $ | 364,000 |
| Variable overhead cost per direct labor-hour | $ | 1.00 |
Required:
1. Compute the predetermined overhead rate.
2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available with respect to his job:
| Direct materials | $ | 777 |
| Direct labor cost | $ | 215 |
| Direct labor-hours used | 2 | |
Compute Mr. Wilkes’ total job cost.
3. If Speedy establishes its selling prices using a markup percentage of 30% of its total job cost, then how much would it have charged Mr. Wilkes?
In: Accounting
Propane Company uses a job-order costing system and started the month of
March with three jobs in process. The cost of beginning work in process
plus the costs added during March are shown below:
Job #1 Job #2 Job #3
beginning work in process ..... $4,930 $4,970 $2,840
COSTS ADDED DURING MARCH:
direct materials .............. $3,400 $4,200 $4,600
direct labor .................. $5,000 $4,000 ?
Propane applies overhead to jobs based on a percentage of direct materials
used. During March, Propane completed both Job #2 and Job #3. Job #1 was
not completed by the end of March. Job #2 consisted of 1,700 units; some
of these units were sold during March. None of the units from Job #3 were
sold in March. Propane Company's accounting records for March disclosed
the following information:
Work in process inventory balance at March 31 .......... $15,880
Actual overhead cost for the month of March ............ $ 8,500
Cost of goods sold for March ........................... $11,830
Finished goods inventory balance at March 31 ........... $18,870
The cost of goods sold number above represents the cost of goods sold for
March after the overhead variance has been closed for March.
Calculate the direct labor cost added during March for Job #3 and cost of goods manufactured for March.In: Accounting
Jackie-O-Ville Delights manufactures two products, truffles and fudge. The company expects to produce and sell 3,200 cases of truffles and 2,100 cases of fudge during the year. Jackie-O-Ville Delights uses activity-based costing to compute overhead costs per product. Data relating to the company’s three activity cost pools are given below for the current year:
|
Truffles |
Fudge |
|||
|
Direct Materials |
$5.25 |
$3.20 |
||
|
Direct Labor |
$11.15 |
$8.95 |
||
|
Activity Cost Pool |
Estimated Overhead Costs |
Expected Activity |
||
|
Truffles |
Fudge |
Total |
||
|
Machine Setups |
$14,040 |
260 |
260 |
520 |
|
Purchase orders |
$139,400 |
1080 |
2,320 |
3,400 |
|
General Factory |
$202,320 |
7,040 |
4,200 |
11,240 |
Required:
Using the activity-based costing approach, determine the overhead rates for each activity cost pool. 6 points)
Using the above overhead rates determine the overhead cost charged per case to each product (20 points)
Determine the total cost per unit for each product (6 points)
Calculate the cost per unit under the traditional method of allocating overhead using a plant wide predetermined overhead rate using direct labor cost as the activity level.
Calculate the percentage difference in price if the company desires a 40% product profit margin and how it may impact the Truffles and Fudge market.
In: Accounting
An institute reported that 61% of its members indicate that lack of ethical culture within financial firms has contributed most to the lack of trust in the financial industry. Suppose that you select a sample of 100 institute members. Complete parts (a) through (d) below.
a. What is the probability that the sample percentage indicating that lack of ethical culture within financial firms has contributed the most to the lack of trust in the financial industry will be between 58% and 62%?
(Type an integer or decimal rounded to four decimal places as needed.)
b. The probability is 80% that the sample percentage will be contained within what symmetrical limits of the population percentage?
The probability is 80% that the sample percentage will be contained above _ and below _
(Type integers or decimals rounded to one decimal place as needed.)
c. The probability is 91% that the sample percentage will be contained within what symmetrical limits of the population percentage?
The probability is 91% that the sample percentage will be contained above _ and below _
(Type integers or decimals rounded to one decimal place as needed.)
d. Suppose you selected a sample of 400 institute members. How does this change your answers in (a) through
(c)?
A.
An increase in sample size decreases the standard error, causing the value of the answer to part (a) to increase and the ranges in parts (b) and (c) to narrow.
Your answer is correct.
B.
An increase in sample size increases the standard error, causing the value of the answer to part (a) to increase and the ranges in parts (b) and (c) to widen.
C.
An increase in sample size decreases the standard error, causing the value of the answer to part (a) to decrease and the ranges in parts (b) and (c) to narrow.
D.
An increase in sample size increases the standard error, causing the value of the answer to part (a) to decrease and the ranges in parts (b) and (c) to widen.
In: Statistics and Probability
An institute reported that 63 % of its members indicate that lack of ethical culture within financial firms has contributed most to the lack of trust in the financial industry. Suppose that you select a sample of 100 institute members. Complete parts (a) through (d) below.
a. What is the probability that the sample percentage indicating that lack of ethical culture within financial firms has contributed the most to the lack of trust in the financial industry will be between 56 % and 67 %? _______
(Type an integer or decimal rounded to four decimal places as needed.)
b. The probability is 90% that the sample percentage will be contained within what symmetrical limits of the population percentage?
The probability is 90 % that the sample percentage will be contained above____ % and below_____ %. (Type integers or decimals rounded to one decimal place as needed.)
c. The probability is 97% that the sample percentage will be contained within what symmetrical limits of the population percentage?
The probability is 97 % that the sample percentage will be contained above____ % and below_____ %.
(Type integers or decimals rounded to one decimal place as needed.)
d. Suppose you selected a sample of 400 institute members. How does this change your answers in (a) through (c) ?
A. An increase in sample size increases the standard error, causing the value of the answer to part (a) to decrease and the ranges in parts (b) and (c) to widen.
B. An increase in sample size decreases the standard error, causing the value of the answer to part (a) to decrease and the ranges in parts (b) and (c) to narrow.
C. An increase in sample size increases the standard error, causing the value of the answer to part (a) to increase and the ranges in parts (b) and (c) to widen.
D. An increase in sample size decreases the standard error, causing the value of the answer to part (a) to increase and the ranges in parts (b) and (c) to narrow.
In: Statistics and Probability
Assume that the helium porosity (in percentage) of coal samples taken from any particular seam is normally distributed with true standard deviation 0.74.
(a) Compute a 95% CI for the true average porosity of a certain seam if the average porosity for 20 specimens from the seam was 4.85.
(b) Compute a 98% CI for true average porosity of another seam based on 13 specimens with a sample average porosity of 4.56.
(c) How large a sample size is necessary if the width of the 95% interval is to be 0.4?
(d) What sample size is necessary to estimate true average porosity to within 0.21 with 99% confidence?
In: Math
Coupon payments are fixed, but the percentage return that investors receive varies based on market conditions. This percentage returned is referred to as a yield.
A bond’s yield to maturity (YTM) is the percentage return that it is expected to generate if the bond is assumed to be held until it matures. Calculating a bond’s YTM requires you to make several assumptions. Which of the following is one of these assumptions?
The bond is callable.
The probability of default is zero.
Consider the following case of Purple Whale Foodstuffs Inc.:
Purple Whale Foodstuffs Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $1,000, and their current market price is $1220.35. However, Purple Whale Foodstuffs Inc. may call the bonds in eight years at a call price of $1,060.
What are the YTM and yield to call (YTC) on bonds?
Purple Whale Foodstuffs Inc.’s bonds have a yield-to-maturity (YTM) of and a yield-to-call (YTC) of .
If interest rates are expected to remain constant, what is the best estimate of the remaining life left for Purple Whale Foodstuffs Inc.’s bonds?
18 years
8 years
5 years
13 years
If Purple Whale Foodstuffs Inc. issued new bonds today, what coupon rate must the bonds have to be issued at par?
In: Finance
Suppose a bank quotes $/€ = 1.1045-1.1506. What is the bid-ask spread in percentage? Do not write any symbol. Express your answers as a percentage. Make sure to round your answers to the nearest 100th decimal points. For example, write 12.34 for 12.34%.
In: Finance
The following table summarizes prices of various default-free zero-coupon bonds (expressed as a percentage of the face value):
Maturity (years) | 1 | 2 | 3 | 4 | 5 |
Price (per $100 face value) | $96.17 | $91.82 | $87.19 | $82.33 | $77.32 |
a. Compute the yield to maturity for each bond.
b. Plot the zero-coupon yield curve (for the first five years).
c. Is the yield curve upward sloping, downward sloping, or flat?
In: Finance
1. The percentage of tested patients with disease who actually tested positive is called:
a. Specificity
b. Negative predictive value
c. Sensitivity
d. Positive predictive value
2.
The percentage of patients with a negative test who actually do NOT have the disease is called:
a. Negative predictive value
b. Sensitivity
c. Specificity
d. Positive predictive value
3. The percentage of tested patients without disease who actually tested negative is called:
a. Negative predictive value
b. Specificity
c. Sensitivity
d. Positive predictive value
4. In simultaneous testing, there is a:
a. a net gain in sensitivity and a net gain in
specificity.
b. net gain in sensitivity and a net loss in specificity.
c. a net loss in sensitivity and a net loss in specificity.
d. a net loss in sensitivity and a net gain in specificity.
5. The percentage of patients with a positive test who actually have the disease is called:
a. Specificity
b. Negative predictive value
c. Positive predictive value
d. Sensitivity
6. Which of the following can impact a predictive value?
a. Sensitivity if the disease is rare
b. Incidence
c. Whether the disease is treatable
d. Prevalence
7. The ability of a test to determine who does and who does not have disease is measured by
a. Positive predictive value
b. Sensitivity and specificity
c. Predictive values
d, Sensitivity
8. In sequential testing, there is a:
a. net gain in sensitivity and a net loss in specificity.
b. net gain in sensitivity and a net gain in specificity.
c. net loss in sensitivity and a net gain in specificity.
d. net loss in sensitivity and a net loss in specificity.
9. In sequential testing, a person with a negative test is given a second test.
a. True
b. False
10. A Kappa statistic of 0.55 indicates
a. High Intrasubject variability (low agreement)
b. High interobserver variability (low agreement)
c. Medium interobserver variability (medium agreement)
d. Low intraobserver variability (high agreement)
In: Nursing