Cost allocation is often the centerpiece of conflict that is resolved in court cases. The litigation usually involves the dispute over how costs are allocated to a product or product line that is of interest to the plaintiff. This is particularly an issue when a company produces some products or services for a price-competitive market while other products or services are produced for a governmental unit on a cost-plus or reimbursement basis.

Nursing Care Inc., or NCI, operates both a small nursing home and retirement home. There is a single kitchen used to provide meals to both the nursing home and retirement home, meaning labor costs and utilities costs of the kitchen are shared by the two homes. There is also a centralized cleaning department that provides the cleaning services for both homes as well as the kitchen. The nursing home serves only indigent patients who are on Medicaid. The state Department of Health and Family Services (DHFS) reimburses NCI at Medicaid-approved cost reimbursement rates. The Medicaid reimbursement rates are based on cost information supplied by NCI. The relevant cost and allocation data for the most recent year appear in the following table.

Required:

1. Management of NCI currently allocates the kitchen and cleaning department costs based on the number of residents in each home. Determine the amount of service department costs assigned to each of the homes using this allocation base. (Round percentages to two decimal places in your calculations.)

2. DHFS auditors believe the step method of allocation should be used by first assigning cleaning costs based on square feet and then kitchen costs based on number of residents. Determine the amount of service department costs assigned to each of the homes using this allocation method. (Do not round percentage answers.)

The average cost of a traffic fine is $600 this year. It's claimed that the amount has increased. Data collected from a simple random sample of 86 people that have been fined since January, showed that the mean amount was $720. With a standard deviation of $31.75, is there enough evidence to support the claim?

a) state null and alternative hypothesis and state the claim

b) Find the standardized test statistic. Show complete formula

c) Calculate p-value. Is the null hypothesis rejected? Why?

d) Interpret the decision.

Tundra Tots is evaluating the proposed acquisition of new equipment at a cost of $250,000. In addition the equipment would require modifications at a cost of $20,000 plus shipping costs of $3,000. The equipment falls into the MACRS 3-year class, and will be sold after 3 years for $25,000. The equipment would require increased inventory of $4,000. The equipment is expected to save the company $25,000 per year in before-tax operating costs. The company's marginal tax rate is 30 percent and its cost of capital is 11 percent.

a. What is the cash outflow at Time 0?

b. What are the net operating cash flows in years 1, 2, and 3?

c. Calculate the non-operating terminal year cash flow.

d. Calculate net present value. Should the machine be purchased?

PLEASE SHOW WORK IN EXCEL IF POSSIBLE, THANK YOU

1. What Managerial accounting is & how it works in business & organization?
2. Cost of goods & manufacturing, how it works & its components?
3. Product cost VS. period cost:
4. Calculate cost of goods sold:
5. Calculate cost of goods manufactured:
6. What process & job cost is and the difference?
7. Job cost sheet is?
8. Journal entries for job & process costing?
9. Material requisition is & journal entries for those:
10. Calculate predetermine rate:
11. Overapplied & underapplied for manufacturing overhead:
12. What it means Equivalent units of production:
13. Production cost reports are:
14. Calculate manufacturing overhead using predetermine rate:
15. Equivalent units are & what they are for material & conversion:
16. Calculate How many units need to produce when they give you your beginning process and working process?
17. What Variable cost is:
18. What Fixed cost are:
19. What Mixed cost are:
20. Calculate contribution margin Per unit.
    1. 3. methods ONLY need to know 2 of them: NOT the graph method.

21.How to calculate Break even: & definition of break even

22. Calculate marginal safety:

23. CVP income statement is & how to calculate it :

24. What a Master budget is:

          Why we use budgets & why its useful

25. What a Financial budget is:

26. What a Operating Budget is:

         Be able to know how to calculate sales based on those sales.

27. Calculate direct labor cost:

28. Question on cash: how to calculate the available cash?

29. example of cash: accounts receivable sales how much cash will receive?

30. Buy & how much cash in bank & you have to calculate how much cash you need to borrow?

31. What to do with a budget once you have a variance:

32. what a Flexible budget is?

33. what Materiality means?

34. Some numbers on sales do calculate on how many units need to produce?

35. Calculate manufacturing cost based on data on variable & fixed cost?

36. Flexible budget cost: how to calculate the difference of the flexible budget?

37. Difference between favorable & unfavorable dealing with standard cost & actual cost?

38. What is standard cost?

39. Difference between budget VS. standard?

40. What happens when you replace old with new machines; what relevant information you need?

41. Incremental analysis is?

42. What is involved to whether to accept or not accept an order?

43. Steps in decision making process:

44. Management makes decisions based on financial and non-financial information.

A new operating system for an existing machine is expected to cost $660,000 and have a useful life of six years. The system yields an incremental after-tax income of $270,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $21,400. A machine costs $520,000, has a $36,800 salvage value, is expected to last eight years, and will generate an after-tax income of $74,000 per year after straight-line depreciation. Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

A large number of companies are trying to reduce the cost of prescription drug benefits by requiring employees to purchase drugs through a mandatory mail-order program. Suppose a large national retail company is considering requiring a mandated mail order program. The company is concerned about employee attitude and satisfaction levels and wishes to determine employee attitude regarding such a mail order prescription program. The company will move to the mail order system if more than 50% of the surveyed employees provide positive feedback on the program. The company disseminates information on the program and randomly surveys 600 employees. The results showed 310 employees favored the plan while the remainder of the surveyed employees responded unfavorably.  Answer the following questions:

A. Perform the appropriate test to determine if more than 50% of the company's employees favored the mail-order prescription program. Perform the test using the P-VALUE method. Use an alpha of .05 and be sure to show all required steps.

B. Define a Type I Error for this problem. Be specific - generic definitions will not be accepted.

C. Define a Type II Error for this problem. Be specific - generic definitions will not be accepted.

Continental Company is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesses to support the project and now needs to borrow $2,000,000 to complete the project. It therefore decides to issue $2,000,000 of 11%, callable, 10-year bonds. These bonds were issued on January 2018 and pay interest on January 1 and July 1. The bonds yield 10%.

Instructions:

1. Prepare the journal entry to record the issuance of the bonds on January 1, 2018
2. Prepare a bond amortixation schedule up to and including January 1, 2022
3. Prepare the journal entries to record the interest payments on January 1, 2020 and January 1, 2021.
4. Prepare the journal entry to record the bond called on January 2021 at 106

please use excel

Define the term cost of capital. Why is it important for a firm to know its cost of capital? In computing the cost of capital, which sources of capital should be included? How do income taxes affect the cost of capital? Explain the procedure used for computing the cost of equity and debt.

Company XYZ is considering investing in a new machine that will cost $15,000. The machine will allow the firm to generate sales of $50,000 per year. The machine will have a life of 3 years. The operating expenses of XYZ are projected to be 70% of total sales. The machine will be depreciated on a straight-line basis to a zero salvage value. The market value of the machine in three years is estimated to be $5,000. The marginal tax rate of the firm is 35%. If the discount rate is 20%, should the investment be undertaken?

1. A new operating system for an existing machine is expected to cost $640,000 and have a useful life of six years. The system yields an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $20,800.
2. A machine costs $550,000, has a $24,800 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 per year after straight-line depreciation.

Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

A new operating system for an existing machine is expected to cost $640,000 and have a useful life of six years. The system yields an incremental after-tax income of $175,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $20,800. (Round your answers to the nearest whole dollar.)

A machine costs $550,000, has a $24,800 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)