Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter.

Assume that you’ve owned and operated a very successful elite seafood restaurant in a rather small strip mall for several years. A Red Lobster chain seafood restaurant is just about to open across the street from you in another strip mall. Explain how this may affect your total revenue, marginal revenue, marginal cost, and total cost. In other words what, if any, changes would you have to make to what, how, and how much you produce to remain competitive

Loan 3: 15-year versus 30-year mortgage

Amortize a mortgage for a $225,000 house with a 20% down payment for both a 15-year mortgage at 3.625% and a 30-year mortgage at 4.125%.

• 15-year mortgage monthly payment?
• What is the total interest cost over the life of the 15-year loan?
• 30-year mortgage monthly payment?
• What is the total interest cost over the life of the 30-year loan?
• Difference in interest costs between a 15-year and a 30-year mortgage?

MachineElectricityMachineElectricityMonthHoursCostsMonthHoursCostsJanuary 18,400 $ 7,393 July 20,400 $ 7,894 February 22,000 $ 8,672 August 20,500 $ 8,055 March 21,000 $ 8,226 September 22,400 $ 8,897 April 20,100 $ 7,808 October 22,200 $ 8,810 May 19,800 $ 7,511 November 21,900 $ 8,591 June 18,200 $ 7,301 December 21,100 $ 8,442 Using the high-low method determine:(a) the variable electricity cost per machine hour(b) the monthly fixed electricity cost in total.(c) the estimated total electricity costs for 24,000 machine hours.

Isoquant Analysis. A firm with production function q = K^1/4L^1/4 operates with variable labour and variable capital. The firm sells output at a competitive price p = 80 and hires labour at w = 2 and capital at r = 0.5. This firm

1. will produce q =
2. will hire L =
3. will lease capital K =
4. will incur total cost C =
5. will earn profits π =

Now the price rises to p = 120. This firm

1. will produce q =
2. will hire L =
3. will lease capital K =
4. will incur total cost C =
5. will earn profits π =

Imagine Chiquita owns a start up – Swanky Dog Inc. – a firm that sells high end winter coats for dogs. Dog coats sell for $80 each without deviation. She only has enough capacity in her facility to produce a maximum of 10 coats per week. The fixed costs of production are $100. The total variable costs are as follows:

Using the above information, start an Excel worksheet. Make categories and calculate the values for each of the following: price, quantity, fixed cost, variable cost, average variable cost, total costs, average total costs, marginal cost, total revenue, marginal revenue, and profit.

After finding all values in the worksheet, determine what the profit maximizing quantity is for Chiquita’s firm. How can you tell?

c)      Plot the data. In one plot, show ATC, AVC, MC, and MR for Q=[0, 10]. In a separate plot, show Profits as a function of quantity produced over Q=[0,10].

Greeson Clothes Company produced 23,000 units during June of the current year. The Cutting Department used 4,400 direct labor hours at an actual rate of $13.2 per hour. The Sewing Department used 7,300 direct labor hours at an actual rate of $12.9 per hour. Assume there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $13.1. The standard labor time for the Cutting and Sewing departments is 0.2 hour and 0.3 hour per unit, respectively.

a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the (1) Cutting Department and (2) Sewing Department.. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. The two departments have opposite results. The Cutting Department has a(n) unfavorable  rate and a(n) favorable  time variance, resulting in a total favorable  cost variance. In contrast, the Sewing Department has a(n) favorable  rate variance but has a(n) unfavorable  time variance, resulting in a total unfavorable  cost variance.

Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisions. Veronica made the following presentation to Dunn’s board of directors and suggested the Percy Division be eliminated. “If the Percy Division is eliminated,” she said, “our total profits would increase by $26,100.”

In the Percy Division, cost of goods sold is $59,000 variable and $17,000 fixed, and operating expenses are $29,100 variable and $21,100 fixed. None of the Percy Division’s fixed costs will be eliminated if the division is discontinued.

Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Stillicum Corporation makes ultra light-weight backpacking tents. Data concerning the company’s two product lines appear below:

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Required:

1. Determine the unit product costs of the Deluxe and Standard products under the company’s traditional costing system.

2. The company is considering replacing its traditional costing system with an activity-based absorption costing system that would have the following three activity cost pools: