Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 80,000 direct-labor hours as follows:

During April, 26,000 units were scheduled for production: however, only 20,000 units were actually produced. The following data relate to April.

1. Actual direct-labor cost incurred was $1,425,000 for 75,000 actual hours of work.

2. Actual overhead incurred totaled $1,372,500, of which $472,500 was variable and $900,000 was fixed.

Required:

Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.

1. Variable-overhead spending variance.

2. Variable-overhead efficiency variance.

3. Fixed-overhead budget variance.

4. Fixed-overhead volume variance.

Variable-Overhead Spending and Efficiency Variances. (Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Rate" and "Standard Rate" to 2 decimal places.)

In 1780, in what is now referred to as "Brady's Leap," Captain Sam Brady of the U.S. Continental Army escaped certain death from his enemies by running over the edge of the cliff above Ohio's Cuyahoga River in (Figure 1), which is confined at that spot to a gorge. He landed safely on the far side of the river. It was reported that he leapt 22 ft (≈ 6.7 m) across while falling 20 ft (≈ 6.1 m).

What is the minimum speed with which he’d need to run off the edge of the cliff to make it safely to the far side of the river?  

The world-record time for the 100 m dash is approximately 10 s. Given this, is it reasonable to expect Brady to be able to run fast enough to achieve Brady's leap?

Identify two mistakes in the following quote from the Starbucks case:

“Starbucks grew from 17 coffee shops in Seattle 15 years ago to over 19,000 outlets in 58 countries. Sales have climbed an average of 20 percent annually since the company went public, peaking at $10.4 billion in 2008 before falling to $9.8 billion in 2009. Profits bounded ahead an average of 30 percent per year through 2007 peaking at $673, then dropping to $582 billion and $494 billion in 2008 and 2009, respectively. The firm closed 475 stores in the U.S. in 2009 to reduce costs. But more recently, sales revenues rebounded to $11.2 billion in 2011, and profits reached a record $1.2 billion.”

Consider an economy that initially stays at its long-run equilibrium. Policy affects the economy with a one-period lag. Answer the following questions:

1. Use the 3-equations model and diagrams to provide a period by period explanation of how a negative aggregate demand shock lead to a deflation trap, where output and inflation are falling without limit. How can the government use fiscal policy to escape the deflation trap? Illustrate with diagrams.
2. Suppose that the current public debt is already quite large, explain the policy trade-off that the government faces. To implement its policy, the government can choose to finance through either borrowing or taxing. In the light of this trade-off, which one would you recommend between these two options. Why?

Suppose you are a stock market analyst specialising in the stocks of theme parks, and you are examining Disneyland’s stocks. The Wall Street Journal reports that tourism has slowed down in the United States. At Six Flags Magic Mountain in Valencia, California, a new Viper roller coaster is now operating and another new ride, Psyclone, will be opening this year. Using demand and supply analysis, predict the impact of these events on ticket prices and attendance at Disneyland. As reported in The Wall Street Journal, Disneyland slashed ticket prices and admitted that attendance was somewhat lower. Is this consistent with your prediction using demand and supply analysis? In light of the fact that both price and output were falling at Disneyland, is the law of demand being violated in the world of fantasy? [15 marks]

A meteoroid of mass = 555 kg has a speed of 90.0 m/s when 700 km above the Earth. It is falling vertically (ignore air resistance) and strikes a bed of sand in which it is brought to rest in 3.49 m. (a) How much work does the force of gravity do on the meteoroid on the way to the surface? GJ (b) What is the speed of the meteoroid just before striking the sand? m/s (c) How much work does the force of gravity do on the meteoroid after it hits the surface? GJ (d) How much work does the sand do to stop the meteoroid? GJ (e) What is the average force exerted by the sand on the meteor? GN (f) How much thermal energy is produced? GJ

Consider what happens when two people with different (or identical) love styles develop or  attempt to develop a love relationship 
(there is potential humor and tragedy here!). Your task:  Create two (2) profiles or scenarios of two couples using any combination of
love styles outlined in chapter 7 (and handouts if necessary). What would this relationship look like? Could it work? 

Why or why not?  For example, what would a relationship between the ludic lover and the storgic  lover look like, or the manic lover 
and the pragmatic lover? Have fun and feel free to be creative. Also see attached for an opportunity to assess your own love styles!

How do the love styles impact the experience of falling in love and loving?

1. Job-specific human capital. In this problem, based on a simplified version of the model in Bhattacharya and Sood (2006), we will explore how linking employment and health insurance provision can (partially) solve the adverse selection problem if the labor market is competitive. Suppose that there are two types of workers – sickly workers with probability p_s of falling ill over the course of the next year, and robust workers with probability p_r < p_s of falling ill. Employers cannot observe whether a worker is sickly or robust, and because of U.S. law they can only decide to offer health insurance to allof their workers, or none at all. We will assume that a just-hired employee is less productive than an employee who has more experience; let MP_n be the marginal value product of new employees, and MP_e > MP_n be the marginal value product of experienced employees. In this simple model, marginal value product depends only on experience, not on whether a worker is sickly or robust.

1. Consider an employer deciding whether to hire a new employee who will produce a marginal value product of MP. If the employer offers income and no health insurance, what wage, w, will the employer have to pay the employee in a competitive labor market? What would happen if the employer offered the employee less? What would happen if the employer offered the employee more?

ANS.

2. D is a measure of job-specific human capital; as workers learn the job, they become more productive so D > 0. However, not every job or industry has the same value for D. In some lines of work D is low, while in others D is high, simply because of the nature of the work. Given the results you have seen in this problem, in which types of industries – high-D or low-D – would you expect there to be a larger fraction of employers offering pooled health insurance to workers?

ANS.

1. Which of the following is an example of a transfer payment by the government?

Group of answer choices

The government provides unemployment benefits to its citizens.

The local government invests in building a community center.

The government raises funds in order to build bridges and roads.

The government provides healthcare to its citizens at a subsidized price.

The government provides concessional rates to senior citizens who use public transport.

2. The GDP gap is:

Group of answer choices

the product of the potential real GDP and the equilibrium level of real GDP.

the distance between the current level of real gross domestic product and full employment real GDP.

the difference between potential real GDP and the actual equilibrium level of real GDP.

the difference between the present value of all of government's projected financial obligations and the present value of all projected future tax and other receipts.

the difference between the actual output of an economy and its potential output.

3. A U.S. federal budget deficit that raises real interest rates is most likely to:

Group of answer choices

lead to a depreciation of the dollar in the foreign exchange market.

encourage foreign investment in U.S. securities.

lead to an increase in exports.

lead to an appreciation of other currencies relative to the U.S. dollar.

discourage imports of foreign goods.

4. As disposable income rises:

Group of answer choices

consumption falls, but not by as much as the disposable income rises.

the average propensity to consume increases.

saving falls as a percentage of disposable income.

the average propensity to consume remains unchanged.

saving rises as a percentage of disposable income.

5. The marginal propensity to consume (MPC) is equal to the inverse of the marginal propensity to save (MPS).

Group of answer choices

True

False

6. When we assume that investment is autonomous we imply that:

Group of answer choices

it is a fixed constant amount.

it is independent of current real GDP.

it is a positive function of interest rates.

it is actually zero.

it has no impact on consumption.

7. If the MPS equals 0.25 and the MPI is 0.15, and assume that there are no government taxes, then an initial change in investment spending of $250 million will result in a total change in equilibrium real GDP of $625 million.

Group of answer choices

True

False

The home run percentage is the number of home runs per 100 times at bat. A random sample of 43 professional baseball players gave the following data for home run percentages. 1.6 2.4 1.2 6.6 2.3 0.0 1.8 2.5 6.5 1.8 2.7 2.0 1.9 1.3 2.7 1.7 1.3 2.1 2.8 1.4 3.8 2.1 3.4 1.3 1.5 2.9 2.6 0.0 4.1 2.9 1.9 2.4 0.0 1.8 3.1 3.8 3.2 1.6 4.2 0.0 1.2 1.8 2.4 (a) Use a calculator with mean and standard deviation keys to find x bar and s (in percentages). (For each answer, enter a number. Round your answers to two decimal places.) x bar = x bar = % s = % (b) Compute a 90% confidence interval (in percentages) for the population mean μ of home run percentages for all professional baseball players. Hint: If you use the Student's t distribution table, be sure to use the closest d.f. that is smaller. (For each answer, enter a number. Round your answers to two decimal places.) lower limit % upper limit % (c) Compute a 99% confidence interval (in percentages) for the population mean μ of home run percentages for all professional baseball players. (For each answer, enter a number. Round your answers to two decimal places.) lower limit % upper limit % (d) The home run percentages for three professional players are below. Player A, 2.5 Player B, 2.3 Player C, 3.8 Examine your confidence intervals and describe how the home run percentages for these players compare to the population average. We can say Player A falls close to the average, Player B is above average, and Player C is below average. We can say Player A falls close to the average, Player B is below average, and Player C is above average. We can say Player A and Player B fall close to the average, while Player C is above average. We can say Player A and Player B fall close to the average, while Player C is below average. (e) In previous problems, we assumed the x distribution was normal or approximately normal. Do we need to make such an assumption in this problem? Why or why not? Hint: Use the central limit theorem. Yes. According to the central limit theorem, when n ≥ 30, the x bar distribution is approximately normal. Yes. According to the central limit theorem, when n ≤ 30, the x bar distribution is approximately normal. No. According to the central limit theorem, when n ≥ 30, the x bar distribution is approximately normal. No. According to the central limit theorem, when n ≤ 30, the x bar distribution is approximately normal.