Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q?

3.What was the total manufacturing cost assigned to Job P?

4.If Job P included 20 units, what was its unit product cost?

5.What was the total manufacturing cost assigned to Job Q?

6.If Job Q included 30 units, what was its unit product cost?

7.Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?

8.What was Sweeten Company’s cost of goods sold for March

9.What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department?

10.How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q?

11.How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q?

12.If Job P included 20 units, what was its unit product cost?

13.If Job Q included 30 units, what was its unit product cost?

14.Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q?

15.What was Sweeten Company’s cost of goods sold for March?

Give examples of how to calculate total revenue, total cost, variable cost, fixed cost, marginal cost, ATC, AFC, and AVC.

What is the water-diamond paradox?

What is the meaning of step-variable cost, step-fixed cost, semi-variable (or mixed) cost, and curvilinear cost? Can you explain with one example?

6.9 Grocery retailer. A large, national grocery retailer tracks productivity and costs of its facilities closely. Data below were obtained from a single distribution center for a one-year period. Each data point for each variable represents one week of activity. The variables included are the number of cases shipped (X1), the indirect costs of the total labour hours as a percentage (X2), a qualitative redictor called holiday that is coded 1 if the week has a holiday and 0 otherwise (X3), and the total labor hours (Y).

a. Prepare separate stem-and-leaf plots for the number of cases shipped Xi1
and the indirect cost of the total hours Xi2. Are there any outlying cases
present? Are there any gaps in the data?

Westerville Company reported the following results from last year’s operations:

At the beginning of this year, the company has a $362,500 investment opportunity with the following cost and revenue characteristics:

The company’s minimum required rate of return is 10%.

7. If the company pursues the investment opportunity and otherwise performs the same as last year, what margin will it earn this year? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

"A firm is considering purchasing a computer system.

-Cost of system is $191,000. The firm will pay for the computer system in year 0.

-Project life: 5 years

-Salvage value in year 0 (constant) dollars: $13,000

-Depreciation method: five-years MACRS

-Marginal income-tax rate = 37% (remains constant over time)

-Annual revenue = $146,000 (year-0 constant dollars)

-Annual expenses (not including depreciation) = $77,000 (year-0 constant dollars) If the general inflation rate is 3.7% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation), determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system.
-Cost of system is $128,000. The firm will pay for the computer system in year 0.
-Project life: 5 years
-Salvage value in year 0 (constant) dollars: $12,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 37% (remains constant over time)
-Annual revenue = $128,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $94,000 (year-0 constant dollars)
If the general inflation rate is 2.6% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation), determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system.
-Cost of system is $188,000. The firm will pay for the computer system in year 0.
-Project life: 4 years
-Salvage value in year 0 (constant) dollars: $24,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 40% (remains constant over time)
-Annual revenue = $141,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $75,000 (year-0 constant dollars)
If the general inflation rate is 2.1% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation), determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."