Questions
Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use...

Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations.

Standard

Custom
Direct labor costs $ 50,000 $ 100,000
Machine hours 1,500 1,200
Setup hours 120 420


Total estimated overhead costs are $ 297,000. Overhead cost allocated to the machining activity cost pool is $ 189,000, and $ 108,000 is allocated to the machine setup activity cost pool.

Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.)

Predetermined overhead rate

enter the overhead rate as percentage of direct labor cost rounded to 2 decimal places

 % of direct labor cost

eTextbook and Media

Compute the overhead rates using the activity-based costing approach.

Machining

$ enter a dollar amount per machine hour

 per machine hour
Machine setup

$ enter a dollar amount per setup hour

 per setup hour

eTextbook and Media

Determine the difference in allocation between the two approaches.

Traditional costing
Standard

$ enter a dollar amount
Custom

$ enter a dollar amount
Activity-based costing
Standard

$ enter a dollar amount
Custom

$ enter a dollar amount

In: Accounting

I need to Prepare entries for a job order, cost system, and cost of goods manufactured...

I need to Prepare entries for a job order, cost system, and cost of goods manufactured schedule, but my numbers aren't matching up. Please answer both parts of the question.

Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.

P15-3A Prepare entries for a job order cost system and cost of goods manufactured schedule
Case Inc. is a construction company specializing in custom patios. The patios are constructed of
concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017,  
the general ledger for Case Inc. contains the following data.
Raw Materials Inventory $4,200 Manufacturing Overhead Applied $32,640
Work in Process Inventory $5,540 Manufacturing Overhead Incurred $31,650
Subsidiary data for Work in Process Inventory on June 1 are as follows.
Job Cost Sheets
Customer Job
Cost Element Rodgers Stevens Linton
Direct materials $600 $800 $900
Direct labor             320                  540                 580
Manufacturing overhead             400                  675                 725
$1,320 $2,015 $2,205
    During June, raw materials purchased on account were $4,900, and all wages were paid. Additional
overhead costs consisted of depreciation on equipment $900 and miscellaneous costs of $400 incurred
on account.
    A summary of materials requisition slips and time tickets for June show the following.
Customer Job Materials Requisition slips Time tickets
Rodgers $         800 $850
Koss          2,000 800
Stevens             500 360
Linton          1,300 1,200
Rodgers             300 390
         4,900 3,600
General use          1,500 1,200
$      6,400 $4,800
    Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for
customers Rodgers, Stevens, and Linton were completed during June and sold for a total of $18,900.
Each customer paid in full.
Instructions
(a) Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred,
and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to
production; and (3) completion of jobs and sale of goods.
(b) Post the entries to Work in Process Inventory.
(c ) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
(d) Prepare a cost of goods manufactured schedule for June.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .
(a)(1) Journalize the June transactions for purchase of raw materials, factory labor costs incurred,
and manufacturing overhead costs incurred
Raw Malerials Inventory
Accounts Payable
Factory Labor
Cash
Manufacturing Overhead
Accumulated Depreciation- Equipment
Accounts Payable
(a)(2) Journalize the June transactions for assignment of direct materials, labor, and overhead to production
Work in Pricess Inventory
Manufacturing Overhead
Raw Malerials Inventory
Work in Pricess Inventory
Manufacturing Overhead
Factory Labor
Work in Pricess Inventory
Manufacturing Overhead
(a)(3) Journalize the June transactions for completion of jobs and sale of goods.
Finished Goods Inventory
Work in Process Inventory
Cash
Sales
Cost of Goods Sold
Finished Goods Inventory
(b) Post the entries to Work in Process Inventory.
Work in Process Inventory
6/1 Balance June Completed work
Direct Materials
Direct labor
Overhead applied
6/30 Balance
(c ) Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
6/30 balance in Work in Process Inventory
Unfinished Job (Koss)
     Direct materials
     Direct labor
     Manufacturing overhead
(d) Prepare a cost of goods manufactured schedule for June.
CASE INC.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2017
Work in process, June 1
Direct materials used
Direct labor
Manufacturing overhead applied
     Total manufacturing costs
Total cost of work in process
Less: Work in process, June 30
    Cost of goods manufactured
After you have completed P15-3A, consider the following additional question.
1. Assume that indirect labor and raw materials purchases changed to $1,400 and $6,800 respectively.
Also assume that overhead is applied at the rate of $1.50 per dollar of direct labor. The three
completed jobs were sold for $22,000 cash. Revise the journal entries to reflect these changes.

In: Accounting

The North Central Water Company has finalized its financial statements for the 2019 financial year. The...

The North Central Water Company has finalized its financial statements for the 2019 financial year. The Company's board of directors has asked you, their cost accountant, to look at the financial results and to compare the financial performance for the 2019 fiscal year to the results of the 2018 financial year. The board would also like you to project the revenues and expenses for the 2020 financial year based on several key assumptions. They have asked you to submit an excel file containing the financial results and budget projections as well as a one page memorandum of your findings.

Financial Results:

Total Number of Customers       26,000 25,000

2019    % of Total Revenues   2018    % of Total Revenues

Revenues:

Water Sales $1,162,000 ? $1,200,000 ?

Late Fees 87,000 ? 68,000 ?

Fire Hydrant Fees    114,500 ? 122,000 ?

  Total Revenues $1,363,500 100% $1,390,000 100%

Expenses:

Cost of Water Sold $512,000 ? $278,000 ?

Payroll Expense 608,000 ? 450,000 ?

Overhead Expense 292,050 ?    200,000 ?

Miscellaneous Expenses 64,075. ? 78,000    ?

   Total Expenses $1,476,125 ? $1,006,000    ?

Net Income (Loss) <$112,625> ?    $ 384,000 ?

I. Excel Analysis (Please submit your answers with the excel file provided for you in Ilearn entitled "North Central Financial Results- Student Copy".

Based on the financial results provided above, complete the excel spreadsheet file provided to you and submit your file in Ilearn. Please include include your name in the filename.

.

Required:

1. Calculate each revenue and expense item as a percentage of total revenues in 2019 and 2018 (show percentages out to TWO decimal places for all revenues and expenses, but round total revenue's percentage to ZERO decimal places- see examples in spreadsheet).

2. Calculate the water sales per customer for 2019 and 2018 (show number out to TWO decimal places- see example in spreadsheet).

3. Calculate the company's budgeted financial performance for 2020 based on the assumptions listed below for each revenue and expense item. Then calculate each item as a percentage of total revenues just like you did for 2019 and 2018. Then calculate the water sales per customer for 2020 just as you did for 2019 and 2018- see examples in spreadsheet.

4. Finally, calculate the differences in each revenue and expense item between 2020 and 2019, and 2019 and 2018- see example in spreadsheet. This will provide you with some insight about the year-to-year changes and help you with your business memo which is the second part of this project.

You must use formulas in the excel spreadsheet rather typing-in calculated numbers to get

full credit. You will also run into rounding errors unless you use formulas. Some formulas

and calculated numbers have already been included in the spreadsheet to help you. YOU

SHOULD HAVE AN ANSWER WHEREVER YOU SEE A QUESTION MARK (?)

ASSUMPTIONS:

Assume that the water company expects that in 2020:

a. The number of customers will increase by 5%.

b. Water sales will increase by 4% and late fees will increase by 1% due to increased customer demand.

c. Hydrant fees will decrease by 1% because several older hydrants will be taken out of service.

d. The cost of water sales will increase by 8% because of higher chemical costs.

e. Payroll expenses will increase by 5.5% due to wage increases and higher medical

insurance expenses.

f. Overhead expense will decrease by 4% because of efforts to reduce costs.

g. Miscellaneous expenses are expected to double because of the purchase of building supplies in anticipation of a major waterline project in 2020.

Here are some check figures to help you out:

2020 Total Revenue=1,409,705

2020 Total Expense=1,602,918

2020 Water Sales per customer= $44.27

Total Income<loss> 2020 vs 2019= <$80,588>

Total Income<loss> 2019 vs 2018=<$496,625>

Total Income <loss> as a percentage of total revenue in 2020=-13.71% Total Income <loss> as a percentage of total revenue in 2019=-8.26%

In: Finance

Between January and June of 2011, The Gallup survey company conducted telephone interviews. The interviews were...

Between January and June of 2011, The Gallup survey company conducted telephone interviews. The interviews were part of the Gallup-Healthways Well-Being Index survey. The researchers interviewed a random sample of adults, aged 18 and older. The adults lived in all 50 of the U.S. states and in the District of Columbia. Approximately 500 of the people who were interviewed were men and 500 were women. The people who were interviewed were asked about how much and how often they exercise. The researchers asked these people if they exercise for 30 minutes a day, three or more times each week. Among the women, 47.8% answered “Yes” whereas 54.8% of the men answered “Yes”. The researchers estimated that the 95% confidence interval for the true difference between the proportions of all U.S adult women and men who would answer “Yes” to the question was between -13.2% and -0.82%.

Part 1. Which of the following statements is the best interpretation of the 95% confidence interval?

A. We are 95% confident that, across the United States, men are between 0.82% and 13.2% more likely to exercise for 30 minutes at least 3 times a week than are women.
B. There is between a 0.82% and 13.2% chance that the true percentage of U.S. men who exercise for 30 minutes at least 3 times a week is higher than the percentage of women.
C. We are 95% confident that in the U.S, there are between 0.82% and 13.2% less women exercising for 30 minutes at least 3 times a week than men.

Part 2. Think about the results of the percentage of women and men in the United States who exercise for 30 minutes at least 3 times a week. Which of the following statements are supported by the poll results?

A. There is no difference between the percentage of women and men because both sample percents are close to 50%.
B. There is no difference between the percentage of women and men because the confidence interval includes the -5% level of significance.
C. There is a difference between the percentage of women and men because the sample percentage for women who said “Yes” is below 50%, but above 50% for the sample of men.
D. There is a difference between the percentage of women and men because the confidence interval does not include 0%.

Part 3. Which of the following statements is the best interpretation of the statistical term “95% confidence”?

A. 95% of the time that the same methods are used, the interval estimate will include the true difference between the percentages for women and men in the United States.
B. Adults from 95% of all the states in the United States were included in the poll that was conducted between January and June of 2011.
C. There is a 95% chance that the true percentage of women in the United States who exercise less often than men is between 0.82% and 13.2%.
D. Between 0.82% and 13.2% of the men in 95% of the states in the United States exercised more often than women.

In: Statistics and Probability

You are tasked with trying to restore the biodiversity in a national park. How might your understanding of keystone species affect your management plans?

 

8. You are tasked with trying to restore the biodiversity in a national park. How might your understanding of keystone species affect your management plans?

9. Earth can support more people who are vegetarians than people who regularly consume meat. Why do you think this is?

10. If only 10% of the energy available in a plant is turned into body tissue of a cow, what happens to the other 90%?

11. Which do you think would be a more stable ecosystem: one where each species has only one connection to another species, or one where each species has five connections to other species? Explain your answer.

12. Which community would support the greatest diversity of species—a community composed of species with broad ecological niches or a community composed of species with narrow, specialized ecological niches? Explain your answer.

 

In: Biology

Your client, Ben McDonald, has written you about his tax situation. Please assume that gross income...

Your client, Ben McDonald, has written you about his tax situation. Please assume that gross income is $172,900 (which consists only of salary) for purposes of this problem.

December 31, 2016

Dear ***** *****, CPA:

Hi, it’s Ben McDonald again. I understand you need some more information from me in order to complete my tax return. Please let me know what information you need and I’ll be happy to provide it.

I moved this year due to taking a job at SwissLog. The move was in late January and I worked my job at SwissLog for the rest of the year. I moved 650 miles away from my old house but I still live in the same state. I left a little bit early to go on a house-hunting trip that cost me a total of $450. I hired a moving company to move our stuff at a cost of $2,300, and I drove Junior in my car. Junior and I got a hotel room along the way that cost us $65. We spent $35 on meals on the way to our new home. Oh yeah, I took my little boy to a movie on the way and that cost $20.

Can you believe I’m still paying off my student loans, even after 15 years? I paid a total of $900 in interest on my old student loans this year.

Since SwissLog (my employer) never started a retirement plan, I decided I should probably start saving for my golden years. I contributed $3,000 to what the bank referred to as a regular IRA (or was it a REM?). Oh yeah. I also did a little investing this year. I bought a limited partnership interest in IGlow, Ltd. for $10,000. I thought it was going to be a real winner, but this year they took a bath. My portion of the loss was $8,000. Well, at least I did not actually do any work for IGlow, and I get the tax deduction - right?

That should be all the information you need right now. Please calculate my adjusted gross income and complete page 1 of Form 1040. You’re still doing this for free, right?

Sincerely,

Ben

Required: calculate Ben’s AGI and complete the 1st page of the 1040 form (forms can be downloaded from the IRS website).

In: Accounting

You have been recruited by a former classmate, Susanna Wu, to join the finance team of...

You have been recruited by a former classmate, Susanna Wu, to join the finance team of a company that she founded recently. The company produces a unique product line of hypoallergenic cosmetics and relies for its success on an aggressive marketing program. The company is in a start-up phase and therefore has no significant history of expenses and revenues upon which to rely for budgeting and planning purposes. Given the restriction on available funds (most of the available capital has been used for new-product development and to recruit a management team), the control of costs, including marketing costs, is thought by the management team to be essential for the short-term viability of the company.

You have held a number of intensive discussions with Susanna and John Thompson, director of marketing for the firm. They have asked you to prepare an estimated budget for marketing expenses for a month of operations.

You are provided with the following data, which represent average actual monthly costs over the past three months:

Cost Amount
Sales commissions $126,500
Sales staff salaries 44,500
Telephone and mailing 56,400
Rental—office building 23,200
Gas (utilities) 12,200
Delivery charges 72,600
Depreciation—office furniture 9,000
Marketing consultants 26,400

Your discussions with John and Susanna indicate the following assumptions and anticipated changes regarding monthly marketing expenses for the coming year:

  • Sales volume, because of aggressive marketing, should increase by 14%.
  • To meet competitive pressures, sales prices are expected to decrease by 7%.
  • Sales commissions are based on a percentage of sales revenue.
  • Sales staff salaries, because of a new hire, will increase by 14%, regardless of sales volume.
  • Because of recent industrywide factors, rates for telephone and mailing costs, as well as delivery charges, are expected to increase by 10%. However, both of these categories of costs are variable with sales volume.
  • Rent on the office building is based on a 2-year lease, with 18 months remaining on the original lease.
  • Gas utility costs are largely independent of changes in sales volume. However, because of industrywide disruptions in supply, these costs are expected to increase by 15%, regardless of changes in sales volume.
  • Depreciation on the office furniture used by members of the sales staff should increase because of new equipment that will be acquired. The planned cost for this equipment is $25,200, which will be depreciated using the straight-line (SL) method, with no salvage value, over a 3-year useful life.
  • Because of competitive pressure, the company plans to increase the cost of marketing consultants by $5,000 per month.

Required:

1. Based on the preceding information, what is the percentage change, by line item and in total, for items in your budget?

2. The management team is worried about the short-term financial position of the new company. Given the strain on available cash, the president has expressed a desire to keep marketing expenses over the next few months to a maximum of $382,000. Discussions with the marketing department indicate that telephone and mailing costs are the only category, in the short run, that can reasonably bear the planned-for reduction in marketing costs. The budget you have prepared includes an assumed 10% increase in telephone and mailing costs. What must this percentage change (positive or negative) be in order to achieve targeted monthly marketing costs? (Hint: The Goal Seek function in Excel can be used to calculate the percentage changes, which can be found under Data, then What-If Analysis.)

In: Accounting

Assume the economy has a GDP of $11,500 billion. The unemployment rate is at 7.3% and...

Assume the economy has a GDP of $11,500 billion. The unemployment rate is at 7.3% and has been slowly rising for the last 6 months. Inflation was at 2.3% one year ago but has since dropped to near 0%. The MPC in the economy is .80 and the Natural Rate of Unemployment is 4.5%. The target rate for inflation is 2%.

  1. Why would it be better for government to solve the problem using government purchases (part c above) rather than taxes (part d above) to solve the problem?
  2. Assuming that government does decide to use the tax policy, what could happen to cause the policy to be ineffective?

In: Economics

Trace metals found in wells affect the taste of drinking water, and high concentrations can pose...

Trace metals found in wells affect the taste of drinking water, and high concentrations can pose a health risk. Researchers measured the concentration of zinc (in milligrams/liter) near the top and the bottom of 7 randomly selected wells in a large region. The data are provided in the following table. Construct and interpret a 90% confidence interval for the true mean difference (Bottom – Top) in the zinc concentrations of the wells in this region.

well 1 2 3 4 5 6 7
bottom 0.24 0.73 0.45 0.44 0.31 0.56 0.49
top 0.19 0.64 0.41 0.37 0.30 0.53 0.42

In: Statistics and Probability

A. The electric potential at a position located a distance of 19.2 mm from a positive...

A. The electric potential at a position located a distance of 19.2 mm from a positive point charge of 7.80×10-9C and 13.0 mm from a second point charge is 1.14 kV. Calculate the value of the second charge.

B. The potential difference between two parallel conducting plates in vacuum is 590 V. An alpha particle with mass of 6.50×10-27 kg and charge of 3.20×10-19 C is released from rest near the positive plate. What is the kinetic energy of the alpha particle when it reaches the other plate? The distance between the plates is 45.0 cm.

In: Physics