What is the actual cost per unit produced and what is the primary cause of the difference between actual cost per unit produced in the framing department and the standard price per frame? (Volume Variance, Efficiency Variance or Price Variance)

Should the framing department be held responsible for the poor performance of the framing division? Explain Why or why not?

Use the scenario below to help with the questions:

DeFleur manufactures bicycles. The bicycles are manufactured in two divisions. In the framing division, the carbon bicycle frames are manufactured. In the assembly division, the components are assembled to the frame and the bike is ready for sale. There is no market for the unassembled frames and all manufactured frames are transferred to the assembly division. For the purposes of performance evaluation, the framing division transfers the completed frames to the assembly division at the budgeted standard cost of a frame. The budgeted units of production for the framing division is 1,000, all of which will be transferred to the assembly division at the standard full absorption cost.

The budgeted costs for the framing division are as follows:

1.  Standard variable overhead is applied to products on the basis of direct labor hours at a rate of $4/unit produced.

Budgeted Fixed Overhead is $30,000 and the standard fixed cost per unit is based on the budgeted units of production.

Actual data for the period relating to the costs are as follows:

2. The framing division worked 7,500 direct labor hours during the year at a total cost of $93,750.

3.  A total of 9,000 carbon-fiber layers were purchased and used in production during the year at a total cost of $171,000

4. Total Budgeted cost for the framing department was $330,000. The total actual cost was $300,750

(Note that all the questions on variance are with respect to the framing department.)

Suppose that with free trade, the cost to the United States of importing a shirt from Mexico is $15.00, and the cost of importing a shirt from China is $12.00. A shirt produced in the United States costs $20.00.

Suppose further that before NAFTA, the United States maintained a tariff of 80% against all shirt imports. Then, under NAFTA, all tariffs between Mexico and the United States are removed, while the tariff against imports from China remains in effect. Assume that the tariff does not affect the world price of shirts.

In the following table, indicate which country the United States imported shirts from before NAFTA. Then indicate which country the United States imported shirts from under NAFTA. Check all that apply. (Note: Leave the row blank if the United States doesn’t import from either country.)

In the following table, indicate whether each stakeholder gains, loses, or neither gains nor loses as a result of NAFTA.

This is an example of trade creation/diversion resulting from a regional agreement.

"A corporation is considering purchasing a vertical drill machine. The machine will cost $66,000 and will have a 2-year service life. The selling price of the machine at the end of 2 years is expected to be $43,000 in today's dollars. The machine will generate annual revenues of $62,000 (today's dollars), but the company expects to have annual expenses (excluding depreciation) of $12000 (today's dollars). The asset is classified as a 7-year MACRS property. The tax rate for the firm is 44%. The general inflation rate is 4% and will impact the annual revenue, annual expenses, and salvage value. What is the real (inflation-free) rate of return for this machine? Express your answer as a percentage between 0 and 100."

A] If cost is $30/unit what must the minimum price be if the profit margin is 15%? B] Based on the figures in “A” above how many minimum units must have been produced to break even if 180 units were sold of those produced? C]. If the production units found in “B” above increased by 100% would the number of units sold need need to increase by 100% in order to break even if price increased by 50%? If not what would be the percentage change in number of units sold?

Mercury Inc. purchased equipment in 2016 at a cost of $249,000. The equipment was expected to produce 510,000 units over the next five years and have a residual value of $45,000. The equipment was sold for $134,800 part way through 2018. Actual production in each year was: 2016 = 71,000 units; 2017 = 114,000 units; 2018 = 58,000 units. Mercury uses units-of-production depreciation, and all depreciation has been recorded through the disposal date.

Required:
1. Prepare the journal entry to record the sale.
2. Assuming that the equipment was sold for $163,800, prepare the journal entry to record the sale.

The cost of 5 gallons of ice cream has a variance of 49 with a mean of 36 dollars during the summer. What is the probability that the sample mean would differ from the true mean by less than 1.5 dollars if a sample of 142 5-gallon pails is randomly selected? Round your answer to four decimal places.

Stellar Co. is building a new hockey arena at a cost of $2,690,000. It received a downpayment of $550,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%

Prepare the journal entry to record the issuance of the bonds on January 1, 2016.

Prepare a bond amortization schedule up to and including January 1, 2020, using the effective interest method.

Assume that on July 1, 2019, Stellar Co. redeems half of the bonds at a cost of $1,173,900 plus accrued interest. Prepare the journal entry to record this redemption.

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.

Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $8,000; direct labor, $3,300; and overhead, $1,254. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)

1&2. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?
3. Using the accumulated costs of the jobs, what predetermined overhead rate is used?
4. How much total cost is transferred to finished goods during June?

A monopolist operates in a market of demand q = 10−p with a total cost of C(Q, e) = (3/2)e^2 +(5−e)Q, where e represents effort.

a. Calculate the price, effort, quantity, and welfare that results from an unregulated monopoly.

b. A regulator establishes that price must equal marginal cost. The monopolist is free to select the level of effort. Calculate price, effort, quantity, and welfare in this situation.

c. A regulator decides to force price equal to marginal cost and mandates that monopolist must choose the level of effort that minimizes costs for a given level of quantity. Calculate price, effort, quantity, and welfare in this new situation.

d. Based on your answer to the previous parts, should a regulator focus on allocative efficiency and ignore productive efficiency?