Jones Souvenirs Hut does customized, hand-crafted memorabilia for hotels, in which each batch of souvenirs is a job. The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. Joust’s predetermined overhead rate for 2017 was computed from the following data:

Total estimated factory overhead $2,400,000

Total estimated direct labour cost $2,000,000

The WIP account given below relates to the activities of Jones Souvenirs for the month of April:

WIP Inventory A/C

DR April1 Bal. $15,000 Cr. To finished Goods ?

DR Direct Materials Used $123,000

DR Direct Incurred ?

Manufacturing Overhead applied ?

IAdditional data:

? Total material requisitioned ……………………………………$153,000

? Manufacturing Labour Costs incurred………………………$163,500 (75% represents direct labour)

? Other manufacturing overheads incurred ………………… $94,275

? Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to the hotel on account at a margin of 33 1/3% on sales.

Required:

(a) Compute Jones Souvenirs predetermined manufacturing overhead rate for 2017.

(b) State the journal entries necessary to record the following transactions in the general journal.

(i) Total materials issued to production

(ii) Assign manufacturing labour to the appropriate accounts

(iii) Other manufacturing overhead incurred

(iv) Manufacturing overhead applied to production

(v) Move completed jobs to finished goods (vi)Account for jobs completed and sold

(c) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. What is the balance on the account before performing end of period closing entries? Is manufacturing overhead under- or over- absorbed? State the journal entries necessary to dispose of the variance. Assume that the manufacturing overhead variance is immaterial.

(d) What is the balance in the Cost of Goods Sold account after the adjustment?

(e) Compute Jones Souvenirs gross profit earned on the jobs, after adjusting for the manufacturing overhead variance.

(f) Determine the balance in Work in Process Inventory on April 30

The following table shows age distribution and location of a random sample of 166 buffalo in a national park.

Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: Age distribution and location are not independent.
H₁: Age distribution and location are not independent.H₀: Age distribution and location are independent.
H₁: Age distribution and location are not independent.    H₀: Age distribution and location are not independent.
H₁: Age distribution and location are independent.H₀: Age distribution and location are independent.
H₁: Age distribution and location are independent.

(b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.)


Are all the expected frequencies greater than 5?

YesNo    

What sampling distribution will you use?

binomialchi-square    uniformnormalStudent's t

What are the degrees of freedom?


(c) Find or estimate the P-value of the sample test statistic. (Round your answer to three decimal places.)

p-value > 0.1000.050 < p-value < 0.100    0.025 < p-value < 0.0500.010 < p-value < 0.0250.005 < p-value < 0.010p-value < 0.005

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence?

Since the P-value > α, we fail to reject the null hypothesis.Since the P-value > α, we reject the null hypothesis.    Since the P-value ≤ α, we reject the null hypothesis.Since the P-value ≤ α, we fail to reject the null hypothesis.

(e) Interpret your conclusion in the context of the application.

At the 5% level of significance, there is sufficient evidence to conclude that age distribution and location are not independent.At the 5% level of significance, there is insufficient evidence to conclude that age distribution and location are not independent.    

Jones Souvenirs Hut does customized, hand-crafted memorabilia for hotels, in which each batch of souvenirs is a job. The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. Joust’s predetermined overhead rate for 2017 was computed from the following data:

Total estimated factory overhead $2,400,000

Total estimated direct labour cost $2,000,000

The WIP account given below relates to the activities of Jones Souvenirs for the month of April:

WIP Inventory A/C

Additional data:

? Total material requisitioned …………………………………… $153,000

? Manufacturing Labour Costs incurred……………………… $163,500  (75% represents direct labour)

? Other manufacturing overheads incurred ………………… $94,275

? Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to the hotel on account at a margin of 33 1/3% on sales.

Required:

(a) Compute Jones Souvenirs predetermined manufacturing overhead rate for 2017.

(b) State the journal entries necessary to record the following transactions in the general journal.

(i) Total materials issued to production

(ii) Assign manufacturing labour to the appropriate accounts

(iii) Other manufacturing overhead incurred

(iv) Manufacturing overhead applied to production

(v) Move completed jobs to finished goods

(vi)Account for jobs completed and sold

(c) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. What is the balance on the account before performing end of period closing entries? Is manufacturing overhead under- or over- absorbed? State the journal entries necessary to dispose of the variance. Assume that the manufacturing overhead variance is immaterial.

(d) What is the balance in the Cost of Goods Sold account after the adjustment?

(e) Compute Jones Souvenirs gross profit earned on the jobs, after adjusting for the manufacturing overhead variance.

(f) Determine the balance in Work in Process Inventory on April 30

The following table shows age distribution and location of a random sample of 166 buffalo in a national park.

Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: Age distribution and location are not independent.
H₁: Age distribution and location are not independent.H₀: Age distribution and location are independent.
H₁: Age distribution and location are not independent.    H₀: Age distribution and location are not independent.
H₁: Age distribution and location are independent.H₀: Age distribution and location are independent.
H₁: Age distribution and location are independent.

(b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.)


Are all the expected frequencies greater than 5?

YesNo    

What sampling distribution will you use?

Student's tbinomial    normalchi-squareuniform

What are the degrees of freedom?


(c) Find or estimate the P-value of the sample test statistic. (Round your answer to three decimal places.)

p-value > 0.1000.050 < p-value < 0.100    0.025 < p-value < 0.0500.010 < p-value < 0.0250.005 < p-value < 0.010p-value < 0.005

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence?

Since the P-value > α, we fail to reject the null hypothesis.Since the P-value > α, we reject the null hypothesis.    Since the P-value ≤ α, we reject the null hypothesis.Since the P-value ≤ α, we fail to reject the null hypothesis.

(e) Interpret your conclusion in the context of the application.

At the 5% level of significance, there is sufficient evidence to conclude that age distribution and location are not independent.At the 5% level of significance, there is insufficient evidence to conclude that age distribution and location are not independent.    

1.A- The government of River City, population 750,000, wants to know how best to allocate funds to serve its residents. Right now it is trying to determine whether to continue funding the "Concerts in the Park" summer music series. To gather data, it hires a firm that specializes in marketing research via telephone. The firm makes 200 calls asking respondents how often they attend the shows.

The size of the sample in question here is relatively (large/small) and the data (are/are not) likely to have significant outliers or large gaps in the values.

What is the best measure of centrality to use in this case? A-Mean ; B-median; C-Weighted mean ;D-Mode

1.B-Otis needs to know how many people his elevators can carry safely. He already knows how much weight they can bear before malfunctioning, so he needs to divide that by the average weight of a person. He uses a large pool of data from the federal government to calculate that average, which he then uses to estimate the largest group of people his elevators will safely accommodate.

The size of the sample in question here is relatively (large/small), and the data(are/are not) likely to have significant outliers or large gaps in the values.

What is the best measure of centrality to use in this case? A-Mean ; B-median; C-Weighted mean ;D-Mode

1.C-The Bakunin Banking Corp. employs 32 people. Upper management includes the CEO, who makes about $1.2 million per year with bonuses; the CFO, who earns $850,000; and three department heads, who each make between $700,000 and $750,000. The company also has two IT staff members, who each make $80,000. The rest of the employees work as clerks and earn between $20,000 and $27,000 dollars. The clerks are thinking about unionizing, and in making their case, they want to emphasize the disparate incomes at the firm.

The size of the sample in question here is relatively (large/small), and the data(are/are not) likely to have significant outliers or large gaps in the values.

What is the best measure of centrality to use in this case? A-Mean ; B-median; C-Weighted mean ;D-Mode

Three years ago, Vincent Chow completed his college degree. The economy was in a depressed

state at the time, and Vincent managed to get an offer of only $25,000 per year as a bookkeeper. In

addition to its relatively low pay, this job had limited advancement potential. Since Vincent was an

enterprising and ambitious young man, he instead started a business of his own. He was convinced

that because of changing lifestyles, a drive-through coffee establishment would be profitable. He

was able to obtain backing from his parents to open such an establishment close to the industrial

park area in town. Vincent named his business The Cappuccino Express and decided to sell only

two types of coffee: cappuccino and decaffeinated.

As Vincent had expected, The Cappuccino Express was very well received. Within three

years, Vincent had added another outlet north of town. He left the day-to-day management of each

site to a manager and turned his attention toward overseeing the entire enterprise. He also hired an

assistant to do the record keeping and other selected chores.

REQUIRED

a. Develop an organization chart for The Cappuccino Express.

b. What factors can be expected to have a major impact on the success of The Cappuccino

Express?

c. What major tasks must Vincent undertake in managing The Cappuccino Express?

d. What are the major costs of operating The Cappuccino Express?

e. Vincent would like to monitor the performance of each site manager. What measure(s) of

performance should he use?

f. If you suggested more than one measure, which of these should Vincent select if he could use

only one?

g. Suppose that last year, the original site had yielded total revenues of $146,000, total costs

of $122,000, and hence, a profit of $24,000. Vincent had judged this profit performance to

be satisfactory. For the coming year, Vincent expects that due to factors such as increased

name recognition and demographic changes, the total revenues will increase by 20 percent to

$175,200. What amount of profit should he expect from the site? Discuss the issues involved

in developing an estimate of profit.

Please read the case study entitled “Casinos and Crime” that you find in the reading assignment. Based on what you have learned in this unit, answer the following questions: 1. In most casino states and counties, laws protect owners from liability claims arising from problems caused by gambling. In ethical terms, however, if you’re the sole proprietor of the casino, do you feel any responsibility for this episode? Why or why not? If you feel any responsibility, to whom would it be? What could you do to set things right? 2. You’re an equal partner in a nonprofit organization that runs the casino to support the cause of building schools for children in impoverished sections of Peru. You spend a few months every year down there building schools and giving free English-language classes. In ethical terms (and regardless of what the law allows), do you believe anyone involved in this episode should be able to sue you personally for their suffering? Why or why not? 3. Say that the casino under discussion in this set of questions is the MGM Grand Hotel and Casino in Las Vegas, which is owned by a large, public corporation. You have five shares of stock inherited a few years ago when a relative died. You are legally protected from liability claims. In ethical terms, however, do you believe that anyone involved in this episode should be able to sue you personally—or just plain blame you—for their suffering? Why or why not? 4. Pigouvian taxes (named after economist Arthur Pigou, a pioneer in the theory of externalities) attempt to correct externalities—and so formalize a corporate social responsibility—by levying a tax equal to the costs of the externality to society. The casino, in other words, that causes crime and other problems costing society, say, $1 million should pay a $1 million tax. In terms of casinos, would such a tax more or less satisfy any ethical claim that could be made against them for the social problems they cause? Why or why not? https://2012books.lardbucket.org/books/business-ethics/s17-05-case-studies.html