Anemia (low healthy blood cells or hemoglobin) has an important role in exercise performance. However, the direct link between rapid changes of hemoglobin and exercise performance is still unknown. A study investigated 18 patients with a blood disorder (beta-thalassemia). Participants in the study performed an exercise test before and the day after receiving a blood transfusion. Data are given in the table.

1. Researchers are interested if the distribution of values for the change in HB (Hemoglobin) follows the pattern where 1/3 of the time the decrease is less than or equal to 1 (HB ≥ -1), 1/3 of the time the decrease is between 1 and 2 (-2 <HB <-1), and 1/3 the time the decrease is greater than or equal to 2 (HB ≤ -2). From our sample what can you conclude?

a. state the null hypothesis

b. which test statistic would you use and what is the observed value

c. which conclusion would you reach (justify)?

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June the plant produced 3,000 pools and incurred the following costs:

1. Purchased 23,000 pounds of materials at a cost of $3.20 per pound.

2. Used 8,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 2,000 direct labor-hours at a cost of $5.70 per hour.

4. Incurred variable manufacturing overhead cost totaling $1,710 for the month. A total of 900 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Experiments A and B are 2 experiments performed by mixing alkaline phosphatase enzyme with Pnpp substrate. The reaction was run for 5 minutes for each tube, then stopped by adding NaOH.

A)Changing enzyme concentration

Calculations for each tube:

1)Calculate final enzyme concentrations in each tube

2)Use beers law to convert absorbance to concentrations (umol). Molar extinction coefficient of p-nitrophenol is 16.2 mM^-1cm^-1. Path length is 1 cm.

3)Calculate velocity (umol/min/mL), make sure to correct the concentration for NaOH addition

B)Changing ph

Calculations for each tube:

1)Calculate final substrate concentrations

2)Use beers law to convert absorbance to concentrations (umol). Molar extinction coefficient of p-nitrophenol is 16.2 mM^-1cm^-1. Path length is 1 cm.

3)Calculate velocity (umol/min/mL), make sure to correct the concentration for NaOH addition

Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3]

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June, the plant produced 6,000 pools and incurred the following costs:

Purchased 25,400 pounds of materials at a cost of $2.45 per pound.

Used 20,200 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

Worked 2,400 direct labor-hours at a cost of $7.20 per hour.

Incurred variable manufacturing overhead cost totaling $5,100 for the month. A total of 1,500 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Problem 10-15 Comprehensive Variance Analysis [LO10-1, LO10-2, LO10-3]

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June, the plant produced 7,000 pools and incurred the following costs:

1. Purchased 33,000 pounds of materials at a cost of $2.85 per pound.

2. Used 27,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 2,700 direct labor-hours at a cost of $6.70 per hour.

4. Incurred variable manufacturing overhead cost totaling $4,930 for the month. A total of 1,700 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Factory Overhead Budget
Service Department 1 handles personnel matters. The firm anticipates having 12 factory employees and expects the variable costs to operate the personnel department to average $1,000 per employee. The cost of this department is allocated to other departments on the assumption that there will be three employees in the maintenance department, five employees in the molding department, and four employees in the smoothing department. The personnel department’s fixed
costs are estimated to be $15,000 and will be allocated on a lump sum basis at $3,000 to maintenance, $6,000 to molding and $6,000 to smoothing.
The maintenance department is budgeted to make 100 service calls during the period, 60 calls for the molding department and 40 calls for the smoothing department. The maintenance manager estimates that it will cost an average of $150 in variable costs per service call. The fixed costs of $14,000 are thought to benefit the two production departments equally.
The molding department is expected to incur $29,000 in variable overhead and $42,000 in fixed overhead. The smoothing department is expected to have $32,000 in variable overhead and $8,000 in fixed overhead.
Management has decided to allocated 60% of the fixed overhead cost of molding to XL1 and 40% to XL2 and split the fixed smoothing costs evenly between the two products. Variable costs will be allocated based on direct labor hours.

Direct Labor                     

Molding                                 

XL1: 0.5, XL2: 0.4

Smoothing

XL1: 0.3, XL: 0.2

Std Cost = 15

Personnel Dept

Factory 12 employees

Maintenance 3 employees

Molding 5 employees

Smoothing 4 employees

Variable Cost 1,000 per employee

Fixed Cost 15,000

Maintenance 3,000

Molding 6,000

Smoothing 6,000

Maintenance Dept     

Service Calls 100

Molding 60

Smoothing 40

Variable Cost 150 per service call

Fixed Cost 14,000

Molding 50%

Smoothing 50%

Molding Dept

Variable Cost 29,000

Fixed Cost 42,000

XL1    60%

XL2     40%

Smoothing Dept

Variable Cost 32,000

Fixed Cost 8,000

XL1 50%

XL2 50%

Help Calculate based on above data:

Cost Per direct labor hour

Cost per unit of XL1

Cost per unit of XL2

Fixed Costs charged to production XL1

Cost per unit of XL1

Fixed Costs charged to production of XL2

Cost per Unit of XL2

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.Last year, the company sold 52,000 of these balls, with the following results:Sales (52,000 balls) $ 1,300,000Variable expenses 780,000Contribution margin 520,000Fixed expenses 321,000Net operating income $ 199,000Required:1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level.2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls?3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $199,000, as last year?4. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs?5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls?6. Refer to the data in (5) above.a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $199,000, as last year?b. Assume the new plant is built and that next year the company manufactures and sells 52,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage.

Books from a certain publisher contain on average 1 misprint per page. Suppose those misprints occur according to a Poisson scatter, with a rate on 1 per page. One of the books from this publisher has 200 pages.

(a). What is the probability that there are at least 70 pages in this book with no misprints?

(b). What is the probability that there is at least one page in this book with 5 or more misprints?

(c). Suppose a proofreader goes through this book and catches each misprint with probability 0.7 (independently for different misprints). If the caught misprints are fixed, what is the probability that there are still 60 or more pages containing misprints?

(d). If this proofreader catches 3 misprints on a page, what is the probability that there are still misprints that weren't caught on that page?

1. Consider the following Cobb-Douglas Production Function for Mauricio’s Machines Inc, a U.S. manufacturer of electronic precision tools:
Q = (L * 0.4) + (K * 0.7)
a. Explain why a Cobb-Douglas production is indeed a representation of reality?

b. Based on the function above, is Mauricio’s Machines’ business experiencing Economies of Scale or Diseconomies of Scale? Please explain your answer.

c. If Mauricio’s Machines decided to boost Labor by 10% and Capital by 15%, how much would their productivity increase?

d. If Mauricio’s Machines wanted to boost productivity by 50% and already knew they were going to increase capital by 25%, how much would they have to increase their labor force to reach this production target?