1. Aztec Builders allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year:

The firm estimates that 1,800 direct labour hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined indirect allocation rate per machine hour is closest to

1. $56.
2. $36.
3. $100.
4. $15.
5. $40.

2. Blockbuster Entertainment manufactures digital video equipment. For each unit $1725 of direct material is used and there is $1,500 of direct manufacturing labour at $30 per hour. Manufacturing overhead is applied at $35 per direct manufacturing labour hour. Calculate the cost of each unit.
   1. $4,975
   2. $4,025
   3. $1,750
   4. $3,150
   5. $4,725

3. In an activity-cost pool
   1. a measure of the activity performed serves as the cost allocation base.
   2. the costs have a cause-and-effect relationship with the cost-allocation base for that activity.
   3. the cost pools are homogeneous over time.
   4. costs in a cost pool can always be traced directly to products.
   5. each pool pertains to a narrow and focused set of costs.

Answer the following question(s) using the information below.

Peter’s Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2019, manufacturing overhead cost estimates total $400,000 for an annual production capacity of 16 million pages.

For 2019, Peter’s Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis:

During 2019, two customers, World Makers and Happy Studios, are expected to use the following printing services:

4. What is the cost driver rate if manufacturing overhead costs are considered one large cost pool and are assigned based on 16 million pages of production capacity?
   1. $0.05 per page
   2. $0.035 per page
   3. $0.35 per page
   4. $0.025 per page
   5. $0.045 per page

5. Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for World Makers during 2019?
   1. $2,500
   2. $21,000
   3. $1,500
   4. $2,700
   5. $2,100

6. Assuming activity-cost pools are used, what are the activity-cost driver rates for design changes, setups, and inspections cost pools?
   1. $200 per change, $64 per setup, $5 per inspection
   2. $180 per change, $76 per setup, $4 per inspection
   3. $150 per change, $64 per setup, $5 per inspection
   4. $150 per change, $60 per setup, $5 per inspection
   5. $200 per change, $5 per setup, $64 per inspection

At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:

Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line.

Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information:

1. On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 17,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $50 a share. Current assessed values of land and building for property tax purposes are $167,500 and $502,500, respectively.
2. On March 25, 2021, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $144,000. These expenditures had an estimated useful life of 12 years.
3. The leasehold improvements were completed on December 31, 2017, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023, was renewable for an additional four-year term. On April 30, 2021, Cord exercised the renewal option.
4. On July 1, 2021, equipment was purchased at a total invoice cost of $317,000. Additional costs of $10,000 for delivery and $42,000 for installation were incurred.
5. On September 30, 2021, Cord purchased a new automobile for $11,700.
6. On September 30, 2021, a truck with a cost of $23,200 and a book value of $7,600 on date of sale was sold for $10,700. Depreciation for the nine months ended September 30, 2021, was $1,710.
7. On December 20, 2021, equipment with a cost of $13,000 and a book value of $2,775 at date of disposition was scrapped without cash recovery.

Required:

1. Figure a schedule analyzing the changes in each of the plant asset accounts during 2021. Do not analyze changes in accumulated depreciation and amortization.
2. For each asset category, figure a schedule showing depreciation or amortization expense for the year ended December 31, 2021.

• Required 1
• Required 2

Figure a schedule analyzing the changes in each of the plant asset accounts during 2021. Do not analyze changes in accumulated depreciation and amortization.

For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2021. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

Hermès is a pan-European courier company with over 40 years’ experience in the business.
It operates primarily in the United Kingdom, Austria, Germany, Italy, and Russia.
In the United Kingdom, Hermès handles more than 245 million parcels a year. It relies

on the growing “gig economy” employment trend with over 10,000 self-employed cou-
riers and a network of 4,500 Parcel Shops. Hermès provides door-to-door services for

any leading retailers including Next, ASOS, John Lewis, and Tesco.
With a large and disparate workforce, planning and control is the key element in
ensuring that the network remains effective and robust. Hermès needed a way to move
the day-to-day management of their U.K. courier network to decision makers on the
ground. Given the unpredictable demands on th courier network, Hermès needed to

be able to reallocate delivery rounds quickly if one courier was overloaded and an-
other in an adjacent area had capacity to take up the extra work.

In the United Kingdom, there are 1.8 million unique postcode addresses. Hermès
has allocated the 10,000 couriers to a number of these postcodes. The network is,
therefore, extremely granular and subject to enormous changes on a daily basis. While
initially employing a centralized system to create and update courier rounds, Hermès

realized this was time consuming and that the delivery maps produced became out-
dated by the time the couriers started their deliveries. Hermès needed a management-
planning tool to optimize its network and assess what-if scenarios.

In designing the new tools, Hermès decided to opt for a dynamic online mapping
system that allowed them to create, view, organize, and manage the courier rounds.
The key elements include the viewing tools (allowing users to visualize the territories
and courier rounds), the planning and operations tool (allows field management to
change the structure of territories and submit their suggestions for approval), and
the scenario planning tool (allows the central operations team to optimize and model

territories to identify any possible efficiencies to the structure). The new planning sys-
tem enables the 200 field managers to make subtle and real-time adjustments to their

operative areas on a local and tactical level. It also allows the central management a
chance to look at the impact and effectiveness of the changes and then approve the
changes in a matter of minutes.
The key benefits of the new planning tools had a direct and positive impact on the
goals of the organisation. There were operational savings (expenses and delivery costs
were cut) and an improvement in service performance and efficiency. Courier turnover
dropped as network members had a more even workload. It provided a holistic view
of the network, allowed peak planning, and a continuous review of the network. Field
managers can access the system via an iPad and they can make and see their planning
changes immediately.

The new planning system is scalable; so as Hermès continues to grow, they recog-
nize the need to make continuous and significant changes to their network structure.

The system allows Hermès to visualize and identify existing and potential problems
and model solutions for them. The system allows Hermès to pledge that every parcel
entering the U.K. Hermès network by December 21, 2016, would have at least one
delivery attempt, or Hermès would refund the delivery charge.53
DISCUSSION QUESTIONS
8-14. How can a planning and mapping software help Hermès to achieve a 95
percent first-time delivery target?
8-15. How can planning ensure that Hermès continues to meet its delivery targets in
the future and at times when there is bad weather or high peak-demand?

At December 31, 2017, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:

Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Machinery and equipment—Straight line; 10 years.
Automobiles and trucks—150% declining balance; 5 years, all acquired after 2014.
Leasehold improvements—Straight line.
Land improvements—Straight line.

Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2018 and other information:

On January 6, 2018, a plant facility consisting of land and building was acquired from King Corp. in exchange for 34,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $50 a share. Current assessed values of land and building for property tax purposes are $210,000 and $630,000, respectively.

On March 25, 2018, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $246,000. These expenditures had an estimated useful life of 12 years.

The leasehold improvements were completed on December 31, 2014, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2020, was renewable for an additional four-year term. On April 30, 2018, Cord exercised the renewal option.

On July 1, 2018, machinery and equipment were purchased at a total invoice cost of $334,000. Additional costs of $10,000 for delivery and $59,000 for installation were incurred.

On August 30, 2018, Cord purchased a new automobile for $13,400.

On September 30, 2018, a truck with a cost of $24,900 and a book value of $10,800 on date of sale was sold for $12,400. Depreciation for the nine months ended September 30, 2018, was $2,430.

On December 20, 2018, a machine with a cost of $21,500 and a book value of $3,200 at date of disposition was scrapped without cash recovery.

Required:

1. Prepare a schedule analyzing the changes in each of the plant asset accounts during 2018. Do not analyze changes in accumulated depreciation and amortization.
2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2018

Prepare a schedule analyzing the changes in each of the plant asset accounts during 2018. Do not analyze changes in accumulated depreciation and amortization.

For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2018. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

I. Classification as One of the Four Basic Market Models

A. Select a company from a current business periodical or where you work, and state which market model is represented by this company. Explain your reasoning using a narrative format. (List the characteristics of the market model you chose, and explain how your company operates in an industry with those characteristics)

B. State a basic industry problem and proceed to analyze using the following methodology where appropriate. Be sure to include the six (6) graphs, as indicated. (Each industry market model has drawbacks or problems, explain how this affects your company and how they attempt to deal with it)

II. Supply & Demand and the Price System Graphs

A. What is the current demand situation – is the curve changing (use graphs)? Is demand relatively elastic or inelastic, why?

Graph #1: Demand Curve and any Changes (CHOOSE ONE):

1. Curve shift and underlying causes 2. Movement along the curve and causes

B. What is the current supply situation – is the curve changing (use graphs)? Graph #2: Supply Curve and any Changes (CHOOSE ONE):

1. Curve shift and underlying causes 2. Movement along the curve and causes

C. Market Equilibrium (use graphs)

Graph #3: Demand & Supply Curves with Changes (before and after on same graph)

1. Surplus/shortage (if appropriate) 2. Price ceilings and price floors (if appropriate) D. Changes in Income & Results

1. Superior/normal or inferior goods

E. Changes in Prices of Related Goods & Results—(CHOOSE ONE):

1. Name a Substitute, complement, or independent goods

III. Costs & Profits: From the article see if the company is above target (Eco. Profit), on target (Normal profit) or below target (Loss).

A. Short-run Costs (use graphs)

Graph #4: Short-run Economic Profit, Normal Profit, or Loss (use MC, AR, ATC, and AR; shade where appropriate) (Based on what read, what do the profits look like currently; illustrate this using the cost curves in the text (for the industry model your in, and the companies current profits)

1. State whether firm is earning a normal or economic profit, or a loss. Illustrate on

graph 4. 2. State any productivity and pertinent cost problems and the resulting effects on graphs. 3. B. Long-run Costs (use graphs)

Graph #5: Long-run Profit or Loss (use MC, AR, ATC, and AR; shade where appropriate) (Based on the market model, what are the profit options in the long run, illustrate using graphs in the text)

1. State whether firm is earning a normal or economic profit, or a loss. Illustrate on

graph 5.

Graph #6: The Planning Curve: LRATC & Optimal Plant Size (Economies & Diseconomies of Scale) (Identify the correct shape of the LRATC based on the market model, identify appoximately where your company is (i.e. are they at lowest cost for the industry?))

1. Graph the LRATC, show economies and diseconomies of scale, and mark with an

“X” the company’s position.

III. Conclusion/Summary

A. Recapitulation of Findings

B. How could the economic problem be corrected? (How can they increase profits and maintain them

long term.

IV. Prediction for Future

A. State your personal prediction for the future. Support your answer.

1. Crazy Quilting, LLC has current assets of $100,000, fixed assets of $400,000, current liabilities of $50,000, and long-term liabilities of $250,000.  
   1. What is their shareholder’s equity?

2. If they sell 1,000 shares of stock for $100 each, what will change on their balance sheet?  What changes on their income statement?

3. If they sell some of their old equipment for $75,000, that has a depreciated value of $50,000, what will change on their balance sheet?  What will their income statement show?

Which of the following statements regarding bond prices and market interest rates are most likely to be true?

1. Interest rate risk can be described as the changes in market interest rates that will cause fluctuations in a bond’s price.

2. Bond prices and market interest rates are negatively related to each other.

3. Coupon paying bonds will trade at a premium to their face value because of the future cash flows expected by bond investors.

We are discussing the minimum wage.

The Fair Labor Standards Act establishing a national minimum wage was enacted in 1938. The minimum wage was set at 25¢ an hour. Here is a history of changes in federal minimum wage (source: https://bebusinessed.com/history/history-of-minimum-wage/)

On this discussion board, discuss if the minimum wage should be eliminated, remain as is or be increased. Be specific with your position and support your position with facts, logic and specific examples.

Which of the following is true?

The higher the cost associated with deposit outflows, the fewer excess reserves banks will want to hold.

One of the least costly ways for a bank to meet withdrawals if it runs short of funds, is to sell loans.

If a bank has sufficient excess reserves, deposit withdrawals will require no other changes in its balance sheet.

An increase in excess reserves reduces liquidity risk and raises a bank's return on its assets.