Required information

Hickory Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labour-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Required:

What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.)

Required:

What is the activity rate for the Machine Setups activity cost pool?

Required:

What is the activity rate for the Product Design activity cost pool?

Required:

What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

Required:

Which of the four activities is a batch-level activity?

• Machining activity
• General factory activity
• Product design activity
• Machine setups activity

Required:

Which of the four activities is a product-level activity?

• Machining activity
• Product design activity
• General factory activity
• Machine setups activity

Required:

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

Required:

Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

Determine the amount of sales. (Units) that would be necessary under the break even sales under present and proposed conditions.

Darby company, operating at full capacity, sold 109,350 units at a price of $69 per unit during the current year. It’s income statement for the current year is as follows:

Sales. $7,545,150

Cost of goods sold. 3,819,150

Gross profit. $3,819,150

Expenses:

Selling expense. $1,863,000

Administrative expense. 1,863,000

Total expense. 3,726,00

Income from operations. $93,150

The division of cost between fixed and vaieable is as follows:

Variable. Fixed

Cost of goods sold. 70%. 30%

Selling expense. 75%. 25%

Administrative expense. 50%. 50%

Management is considering a plant expansion program that will permit an increase of $621,000 in yearly sales. The expansion will increase fixed cost by $62,100, but will not affect the relationship between sales and variable cost.

Required:

1. Determine the total variable cost and the fixed ost.for the current year. Enter the finale answers rounded to. The nearest dollar.

Total variable cost $

Total fixed cost $

2.determine (a) the unit variable cost and (b) the unit contribution margin for the current year.enter the finale answer rounded to two decimal places.

Unit variable cost $

Unit contribution margin $

3. Compute the break-even sales (units) for the current year. Enter the finale answers rounded to the nearest whole number.

4. Compute the break-energy sales ((units) under the proposed program for the following year. Enter the finale answer rounded to the nearest whole number

5.determine the amount of sales (units) that would be necessary under the proposed program to realize the $93,150 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole numbe.

6. Determine the maxi um income from operations possible with the expanded plant. Enter the finale answer rounded to the nearest dollar.

7. If the proposed is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar.

8. Based on the data given, would you maintain the current income from operations would be below the current years sale.

Dream Travel produces car seats for children from newborn to 2 years old. Dream Travel​'s only problem with its car seats was stitching in the straps. The problem can usually be detected and repaired during an internal inspection.

Inspection costs$5.00 per car​ seat, and the repairs cost $ 1.00 per car seat. All 250,000 car seats were inspected last​ year, and 8% were found to have problems with the stitching. Another 4​% of the 250,000 car seats had problems with the​ stitching, but the internal inspection did not discover them. Defective units that were sold and shipped to customers are shipped back to Dream Travel and repaired. Shipping costs are $15.00 per car​ seat, and repair costs are $1.00 per car seat. Negative publicity will result in a loss of future contribution margin of $ 150 for each external failure.

Requirement 1. Identify total costs of quality by category​ (appraisal, internal​ failure, and external​ failure.)

Requirement 2.

Dream Travel is concerned with the high​ up-front cost of inspecting all 250,000 units. It is considering an alternative internal inspection plan that will cost only

$ 2.00 per car seat inspected. During the internal​ inspection, the alternative technique will detect only 4.0% of the 250,000 car seats that have stitching problems. The other 8.0%

will be detected after the car seats are sold and shipped. What are the total costs of quality for the alternative​ technique?

Requirement 3. What factors other than cost should Dream Travel Dream Travel consider before changing inspection​ techniques?

A.There could easily be serious reputation effects if the percentage of external failures increases significantly. This rise in external failures may lead to costs greater than

$ 150 per failure due to lost sales.

B. Higher external failure rates may increase the probability of lawsuits.  

C. Both of the above.

D.Neither of the​ above, cost is the only factor

Dream TravelDream Travel

should consider before changing inspection techniques.

*I NEED PARTS E AND F ONLY, CHECKING MY WORK, THANK YOU!*

P17.1A Combat Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi-purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours × (54,000 + 10,200)]. Estimated annual manufacturing overhead is $1,584,280. Thus, the predetermined overhead rate is $16.45 or ($1,584,280 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models.

Assign overhead using traditional costing and ABC; compute unit costs; classify activities as value- or non-value-added.

The company's managers identified six activity cost pools and related cost drivers and accumulated overhead by cost pool as follows.

Instructions

a. Under traditional product costing, compute the total unit cost of each product. Prepare a simple comparative schedule of the individual costs by product (similar to Illustration 17.3).

a. Unit cost—H.M. $62.18

b. Under ABC, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver).

c. Prepare a schedule assigning each activity's overhead cost pool to each product based on the use of cost drivers. (Include a computation of overhead cost per unit, rounding to the nearest cent.)

c. Cost assigned—H.M. $1,086,500

d. Compute the total cost per unit for each product under ABC.

d. Cost/unit—H.M. $57.62

e. Classify each of the activities as a value-added activity or a non-value-added activity.

f. Comment on (1) the comparative overhead cost per unit for the two products under ABC, and (2) the comparative total costs per unit under traditional costing and ABC.

What are cost drivers? How do cost drivers relate to cost pools? What are some cost pools? Name two or three different cost drivers for each of these cost pools.

What are value-added processes? How do you determine if a process adds value? How does identifying value-added processes help a company run more efficiently and effectively?

1. On January​ 1, 2016, TXU Europe Corporation purchased​ 40% of the outstanding stock of Alberta Power Pool Corporation for​ $800,000. Net income reported by Alberta Power Pool Corporation for 2016 and 2017​ was, respectively,​ $100,000 and​ $125,000. Dividends paid by Alberta Power Pool Corporation during 2016 and 2017​ were, respectively,​ $60,000 and​ $75,000. The long−term investment will appear on TXU Europe​ Corporation's December​ 31, 2017, balance sheet​ at:

A.​$864,000

B.​$836,000

C.​$746,000

D.$890,000

2.Retail Energy Corporation paid​ $1,300,000 on January​ 1, 2017, to purchase​ 32% of the outstanding shares of Natural Gas Limited. In 2017 Natural Gas Limited reported​ $450,000 of net income and paid​ $100,000 in dividends. If this investment is accounted for using the equity method of​ accounting, what will be the impact on the books of Retail Energy​ Corporation?

A.the Investment account will be increased by​ $144,000

B.income of​ $144,000 will be recorded

C.the Investment account will be decreased by​ $144,000

D.income of​ $32,000 will be recorded

3.Under the equity method of accounting for​ investments, dividends paid by the investee are recorded by the investor​ as:

A.a credit to the Investment account of the investor company

B.no entry is made to record dividends in this accounting situation

C.a debit to the Investment account of the investor company

D.a credit to Dividend Revenue of the investor company

4.Corporations invest in ashort−term investment:

A.to sell it for more than its cost

B.to generate a higher profile

C.to invest excess cash temporarily and to increase income

D.to park cash temporarily

When customers have an unpleasant customer experience, the company no longer has to worry about them telling a few friends and family; the company now has to worry about them telling everyone. Internet service providers are giving frustrated consumers another means of fighting back. Free or low-cost computer space for Internet websites is empowering consumers to tell not only their friends but also the world about the way they have been treated. A few examples of disgruntled customer stories from the Internet include:

■ A bike-riding tourist requires stitches after being bitten on the leg by a dog. The tourism company is banned from renting bikes and in turn bars the tourist from taking any future tours.

■ A customer leaving Best Buy refuses to show the receipt voluntarily to the guard at the door. The Best Buy employees try to seize the customer’s cart and then decide to park a car behind the customer’s vehicle.

■ Enterprise Rent-A-Car operates a high-stress business, and frequently its customers find that the company did not honor reservations, did not have cars ready for reservations, rented cars with empty tanks of gas, and charged higher rates to corporate account holders.

The pervasive nature of the Internet is increasing customer power and changing business from product-focused to customer-focused. Explain the difference between product-focused business and customer-focused business and why CRM is more important than ever before.

Enter either (stay the same, no change, increased, or decreased) in the blank spaces.

Suppose that two competing firms, A and B, produce a homogenous good. Both firms have a marginal cost of MC=$70. Describe what would happen to output and price in each of the following situations if the firms are at the (i) Cournot Equilibrium, and (ii) Bertrand equilibrium.  

Firm A must decrease wages, decreasing its marginal cost to $50.  

At the Cournot equilibrium, the quantity produced by firm A will ___ , the quantity produced by Firm B will ___, the totally quantity produced will ___, and the market price will ___.

At the Bertrand equilibrium, the quantity produced by Firm A will ___, the quantity produced by Firm B will ___, the total quantity produced will ___, and the market price will ___.

Instead, suppose the marginal cost of both firms decreases.

At the Cournot equilibrium, the quantity produced by Firm A will ___, the quantity produced by Firm B will ___, the total quantity produced will ___, and the market price will ___.

At the Bertrand equilibrium, the quantity produced by Firm A will ___, the quantity produced by Firm B will ___, the total quantity produced will ___, and the market price will ___.

Instead, suppose the demand curve shifts to the right.

At the Cournot equilibrium, the quantity produced by Firm A will ___, the quantity produced by firm B will ___, the total quantity produced will ___, and the market price will ___

At the Bertrand equilibrium, the quantity produced by Firm A will ___, the quantity produced by Firm B will ___, the total quantity produced will ___, and the market price will ___.

Enter either (stay the same, no change, increased, or decreased) in the blank spaces.