1) In a recent poll, the Gallup organization found that 45% of adult Americans believe that the overall state of moral values in the United States is poor. Suppose a survey of a random sample of 25 adult Americans is conducted in which they are asked to disclose their feelings on the overall state of moral values in the United States. Answer the questions below, showing work. Bare answers are not acceptable. (Showing work means writing the calculator command you used with correct input values in the correct order.)

a) Explain why this is a binomial experiment.

b) Find and interpret the probability that exactly 15 of those surveyed felt the overall state of moral values in the United States is poor.

c) Find and interpret the probability that no more than 10 of those surveyed felt the overall state of moral values in the United States is poor.

d) Find and interpret the probability that more than 16 of those surveyed felt the overall state of moral values in the United States is poor.

e) Find and interpret the probability that 13 or 14 of those surveyed felt the overall state of moral values in the United States is poor.

f) Would it be unusual to find 20 or more adult Americans who believe the overall state of moral values in the United States is poor? Why or why not?

g) Now based on a random sample of 500 adult Americans, compute the mean and standard deviation of the random variable X, the number of adults who believe the overall state of moral values in the United States is poor. Interpret the mean.

h) Would it be unusual to identify 240 adult Americans who believe the overall state of moral values in the United States is poor, based on a random sample of 500 adult Americans? Why? Now using the Normal Approximation to the Binomial, approximate the probability that:

i) Exactly 250 of those surveyed feel the overall state of moral values in the United States is poor.

j) Between 220 and 250, inclusive, of those surveyed feel the overall state of moral values in the United States is poor.

k) At least 260 adult Americans who believe the overall state of moral values in the United States is poor, based on a random sample of 500 adult Americans. Would this be unusual? Why?

2 ) According to www.meretrix.com traffic fatalities occur at a rate of 1.32 fatal accidents per 100 million miles. Find the probability that, during the next 100 million miles, there will be

a) exactly zero accidents. Interpret the results.

b) at least one fatal accident. Interpret the results.

C) more than one fatal accident. Interpret the results.

Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool’s monthly planning budget is based on operating 20 vehicles; however, for the month of March the university purchased one additional vehicle. The motor pool furnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairs are performed at a nearby commercial garage.

The following cost control report shows actual operating costs for March of the current year compared to the planning budget for March.

The planning budget was based on the following assumptions:

$0.27 per mile for gasoline.

$0.16 per mile for oil, minor repairs, and parts.

$51 per automobile per month for outside repairs.

$86 per automobile per month for insurance.

$8,610 per month for salaries and benefits.

$211 per automobile per month for depreciation.

The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool’s performance.

Required:

1. Complete the performance report for March based on a flexible budget that shows spending variances. (Round "per mile" answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Please help with Planning Budget Assumptions, thank you.  

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.60 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $347,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch—a 58-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $180.80 (800 square feet @ $22.60 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.35 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 11,000 hundred square feet Travel to jobs Miles driven 133,500 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $341,000 which includes the following costs: Wages $ 136,000 Cleaning supplies 25,000 Cleaning equipment depreciation 6,000 Vehicle expenses 34,000 Office expenses 65,000 President’s compensation 75,000 Total cost $ 341,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 78 % 14 % 0 % 8 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 75 % 0 % 0 % 25 % 100 % Vehicle expenses 0 % 77 % 0 % 23 % 100 % Office expenses 0 % 0 % 56 % 44 % 100 % President’s compensation 0 % 0 % 26 % 74 % 100 % Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch—a 56-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $178.80 (800 square feet @ $22.35 per hundred square feet). Calculate the customer margin earned on this job.

Crescent Oil has developed three new blends of gasoline – Blend X, Blend Y and Blend Z, and must decide which blend or blends to produce and distribute. A study of the miles per gallon ratings of the three blends is being conducted to determine if the mean ratings are the same for the three blends.

Five automobiles- 1, 2 3, 4 and 5, have been tested using each of the three gasoline blends and the miles per gallon ratings are shown on the accompanying Excel spreadsheet.

Based on the sample data we would like to determine whether the different blends of gasoline, produce significant differences in the average mpg. We would like to use the methods we have learnt so far in 361A to see if our result is statically significant. (Statistical significance refers to a result that is not likely to occur randomly but rather is likely to be attributable to a specific cause – in this case the different gasoline blends and different cars.)

Carry out the following tests and make preliminary findings:

1. For the sample data, calculate the means and standard deviations for the mpg for each of the three blends of gasoline – Blend X, Blend Y and Blend Z.
2. Draw three boxplots using Excel for mpg, one for each blend of gasoline.
3. Run three two sample t-tests between the different blends of gasoline i.e. compare the means of Blend X and Blend Y, then Blend X and Blend Z and finally Blend Y and Blend Z. Are they the same or are they different?
4. Armed with this information above determine whether or not your results show that the three different gasoline blends produce the same average mpg or not. Your answers should specifically site the information you re using to make your determination.
5. Re-run parts 1 - 4 above but this time your focus is on the mpg of each car for the 5 cars (car 1 through car 5) not for the three gasoline blends.

Your report should have the following sections, arranged sequentially:

1. Introduction and problem background

2. Data description and the business questions to be answered

3. Initial data exploration – descriptive statistics/graphs

4. Analyses

5. Interpretation of results, deficiencies in methods, final conclusions and recommendations for decision-making

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.15 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $355,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 52-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $138.90 (600 square feet @ $23.15 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.60 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 14,000 hundred square feet Travel to jobs Miles driven 405,000 miles Job support Number of jobs 1,800 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $351,000 which includes the following costs: Wages $ 135,000 Cleaning supplies 33,000 Cleaning equipment depreciation 19,000 Vehicle expenses 36,000 Office expenses 57,000 President’s compensation 71,000 Total cost $ 351,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 75 % 15 % 0 % 10 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 75 % 0 % 0 % 25 % 100 % Vehicle expenses 0 % 76 % 0 % 24 % 100 % Office expenses 0 % 0 % 60 % 40 % 100 % President’s compensation 0 % 0 % 31 % 69 % 100 % Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 52-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $141.60 (600 square feet @ $23.60 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.20 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below: Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 10,500 hundred square feet Travel to jobs Miles driven 119,000 miles Job support Number of jobs 1,900 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable The total cost of operating the company for the year is $359,000 which includes the following costs: Wages $ 143,000 Cleaning supplies 25,000 Cleaning equipment depreciation 11,000 Vehicle expenses 33,000 Office expenses 69,000 President’s compensation 78,000 Total cost $ 359,000 Resource consumption is distributed across the activities as follows: Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 70 % 15 % 0 % 15 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 68 % 0 % 0 % 32 % 100 % Vehicle expenses 0 % 79 % 0 % 21 % 100 % Office expenses 0 % 0 % 57 % 43 % 100 % President’s compensation 0 % 0 % 32 % 68 % 100 % Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch—a 58-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $92.80 (400 square feet @ $23.20 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.60 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $332,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N ranch—a 56-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N ranch was $90.40 (400 square feet @ $22.60 per hundred square feet). Calculate the customer margin earned on this job.

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.90 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $372,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 57-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $137.40 (600 square feet @ $22.90 per hundred square feet). Calculate the customer margin earned on this job.