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?

Give the formulas for and plot (in excel) AFC, MC, AVC, and AC if the cost function is

TC=10+10q,

TC=10+q2, or

TC=10+10q−4q2+q3.

STEP BY STEP IN EXCEL

A special bumper was installed on selected vehicles in a large fleet. The dollar cost of body repairs was recorded for all vehicles that were involved in accidents over a 1-year period. Those with the special bumper are the test group and the other vehicles are the control group, shown below. Each "repair incident" is defined as an invoice (which might include more than one separate type of damage).

Source: Unpublished study by Thomas W. Lauer and Floyd G. Willoughby.

(a) Construct a 99 percent confidence interval for the true difference of the means assuming equal variances. (Round your intermediate t_crit value to 3 decimal places. Round your final answers to 3 decimal places. Negative values should be indicated by a minus sign.)

The 99% confidence interval is from  to  

(b) Repeat part (a), using the assumption of unequal variances with Welch's formula for d.f. (Round your intermediate t_critvalue to 3 decimal places. Round your final answers to 3 decimal places. Negative values should be indicated by a minus sign.)

The 99% confidence interval is from  to  

(c) Did the assumption about variances change the conclusion?
  

• Yes

• No

(d) Construct separate 99% confidence intervals for each mean. (Round your intermediate t_crit value to 3 decimal places. Round your final answers to 2 decimal places.)

2. Sizemore Company owns land that it purchased at a cost of $1,200,000 in 2013. The company chooses to use revaluation accounting to account for the land. The land’s value fluctuate as follows (all amounts as of December 31): 2013, $1,350,000; 2014, $1080,000; 2015, $1,160,000; and 2016, $1,230,000.

Instructions

Prepare the journal entries to record the revaluation of the land in each year.

The following information applies to questions 7 – 9:

A truck that cost $18,000 and on which $16,000 of accumulated depreciation has been recorded was sold on January 1, the first day of the year.

7. Assume the truck was sold for $2,500 cash. The entry to record the sale would include:

8. Assume the truck was sold for $1,500 cash. The entry to record the sale would include:

9. Assume the truck was traded for new equipment valued at $10,000 and that a $2,200 trade-in allowance was given for the old truck. The entry to record the exchange would include:

12. Jones Co. borrows $30,000 from the bank at 9% interest on August 31. Jones' journal entry to record accrued interest on the note on September 30 would include (use a 365-day year):

In a competitive market the cost function is given by: C(q) = 800 + 40q + 2q 2 . Demand is given by QD = 520 − p.

(a) What is a firm’s marginal cost?

(b) Below which price should a firm shut down in the short run?

(c) In the short run there are 28 firms. How much does each firm sell?

(d) Below which price should a firm shut down in the long run?

(e) What is the number of firms in the long run?

1. Explain the concept of opportunity cost and discuss how it relates to the problem of choice between alternatives

2. In what ways does money facilitate specialization and division of labour?

3. economics used to be known as the dismal science because it pointed out that choices had to be made between scarce alternatives. Assess the prospects of scarcity being eliminated in the foreseeable future.

true or false

All cost are reported on the income statement {}

an activity can be the total cost of a product {}

once the future of cost has been received the cost becomes an expense on the income statement {}

The relevant range is the range in which cost behaviors and estimates are valid.()

the data points with the highest cost and lowest cost are used to estimate fixed and variable costs when the high low method is used ()

the amount of net income presented on a functional income statement will be different from the amount of net income presented on a contribution margin format income statement ()

choose

1. When drawing a scattergraph, which of the following is correct?
   1. Identifying the line on the graph is determined by connecting the high point with the low point.
   2. The cost is plotted on the x-axis.
   3. The point where the line crosses the x-axis is the total fixed cost.
2. CalcTown sold 400 calculators during 2011 for a total profit of $4,200. Its contribution margin per unit was $54 and its contribution margin ratio was 30%. If sales revenue increases by $1,800, by how much will operating income increase?
   1. $1,800
   2. $16.20
   3. $1,260
   4. $540

(1) You are estimating the cost of optical sensors based on the radius of the sensors. You decide to calculate the coefficient of determination (R2) as part of determining the goodness of fit of an equation. Using the preliminary calculations below, calculate the R2 and determine its meaning. [Image Description: Summation of (Yi-Ybar)2 = 150000, Summation of (Yhat-Ybar)2 = 125000, Summation of (Y-Yhat)2 = 25000]

16.67% of the variation in the radius is being explained by the cost.

83.33% of the variation in the cost is being explained by the radius.

16.67% of the variation in the cost is being explained by the radius.

83.33% of the variation in the radius is being explained by the cost.

(2) Given the following information, determine the equation for the unit formulation. (Round intermediate calculations to 4 decimal places) [Table Description: Table listing Unit Number (X) and Unit Cost ($Y). Unit 1 = $785.00, Unit 2 = $605.00, Unit 3 =$519.50, Unit 4=$466.27]

Unit Number (X) Unit Cost (Y) $

1 785.00

2 605.00

3 519.50

4 466.27

Y = (785)(X) -0.4941

Y = (785)(X) -0.3758

Y = (785)(X) 0.7707

Y = (785)(X) 0.7 2)

You are estimating the fuel consumption (gallons per mile) for intermediate armored vehicles based on the horsepower of the vehicle. The vehicle for which you are estimating has 4.77 hundred horsepower. Given the following equation, select the correct response from each pair.

Fuel Consumption = - 0.0494 + 0.22 (Horsepower in hundreds)

The dependent variable is Horsepower

The dependent variable is Fuel Consumption The y-intercept is 0.22

The y-intercept is - 0.0494

The estimated fuel consumption for your vehicle is 1.10 gallons per mile

The estimated fuel consumption for your vehicle is 1.00 gallons per mile