Question 9 options:

Hartman Company is trying to determine how much of each of two products should be produced over the coming planning period. The only serious constraints involve labor availability in three departments. Shown below is information concerning labor availability, labor utilization, overtime, and product profitability.

If all production is done in a standard workweek, then Profit per Unit includes the cost to pay for the workforce. But, if overtime is needed in each department, then the Profit Function needs to be reduced by the Cost per Hour of Overtime in Each Department multiplied by the Number of Overtime Hours Used in Each Department. For example, if we used 5 hours of Overtime in Department A, we would need to Subtract $17*5 from our Profit equation.


Setup and Solve the Linear Programming Problem and determine the number of units of Product 1 and Product 2 to produce to Maximize Profit. Add an Additional Constraint to your LP to make sure that ALL of the Variables are INTEGERS


Hint: You will need 5 Decision Variables, 2 of them to determine the production quantities, and 3 of them to determine how much overtime to use in each of the departments.


Max Profit = $

(Do Not Use Commas) Hint: Max Profit is Between $4237 and $4537
Number of Units of Product 1 to Produce =

Number of Units of Product 2 to Produce =

Overtime in Department A =

hours
Overtime in Department B =

hours
Overtime in Department C =

Hartman Company is trying to determine how much of each of two products should be produced over the coming planning period. The only serious constraints involve labor availability in three departments. Shown below is information concerning labor availability, labor utilization, overtime, and product profitability.

If all production is done in a standard workweek, then Profit per Unit includes the cost to pay for the workforce. But, if overtime is needed in each department, then the Profit Function needs to be reduced by the Cost per Hour of Overtime in Each Department multiplied by the Number of Overtime Hours Used in Each Department. For example, if we used 5 hours of Overtime in Department A, we would need to Subtract $22*5 from our Profit equation.


Setup and Solve the Linear Programming Problem and determine the number of units of Product 1 and Product 2 to produce to Maximize Profit. Add an Additional Constraint to your LP to make sure that ALL of the Variables are INTEGERS


Hint: You will need 5 Decision Variables, 2 of them to determine the production quantities, and 3 of them to determine how much overtime to use in each of the departments.

Max Profit = $

(Do Not Use Commas) Hint: Max Profit is Between $3169 and $3569
Number of Units of Product 1 to Produce =

Number of Units of Product 2 to Produce =

Overtime in Department A =

Overtime in Department B =

Overtime in Department C =

(hours)

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed.

Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation:

The decision variables are Q_j, the amount of item j to order. The model is:

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (D_j/Q_j is the number of orders), and the last term is the annual inventory holding cost (Q_j/2 is the average amount of inventory).

Set up a spreadsheet model for the following data:

W = $21,000

i = 0.3

Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than 0 for Solver to find a solution.

If required, round your answers to two decimal places.

Optimal Solution:

Q₁ =  

Q₂ =  

Q₃ =  

If required, round your answer to the nearest dollar. Do not round intermediate calculations.

Total cost = $

The Economic Order Quantity (EOQ) model is a classical model used for controlling inventory and satisfying demand. Costs included in the model are holding cost per unit, ordering cost and the cost of goods ordered. The assumptions for that model are that only a single item is considered, that the entire quantity ordered arrives at one time, that the demand for the item is constant over time, and that no shortages are allowed.

Suppose we relax the first assumption and allow for multiple items that are independent except for a restriction on the amount of space available to store the products. The following model describes this situation:

The decision variables are Q_j, the amount of item j to order. The model is:

In the objective function, the first term is the annual cost of goods, the second is the annual ordering cost (D_j/Q_j is the number of orders), and the last term is the annual inventory holding cost (Q_j/2 is the average amount of inventory).

Set up a spreadsheet model for the following data:

W = $21,000

i = 0.3

Solve the problem using Excel Solver. Hint: You will need to start with decision variable values that are greater than 0 for Solver to find a solution.

If required, round your answers to two decimal places.

Optimal Solution:

Q₁ =  

Q₂ =  

Q₃ =  

If required, round your answer to the nearest dollar. Do not round intermediate calculations.

Total cost = $

1. The Zumber National Rent Report lists the average monthly apartment rent in various locations in the United States. According to their report, the average cost of renting a one-bedroom apartment in Houston is $1,090. Suppose that the standard deviation of the cost of renting a one-bedroom apartment in Houston is $96 and that such apartment rents in Houston are normally distributed. If a one-bedroom apartment in Houston is randomly selected, what is the probability that the price is: (20 points) (a) More than $1,250? (b) Between $1,050 and $1,200? (c) Between $900 and $1,000? (d) Less than $1,180? Bonus question (e) Below $850 or beyond $1,300? (5 points)

2. Suppose the grade on a Math test is normally distributed with mean 78 and standard deviation 10. (a) Compute the z-scores (5 points) (a-1) If Bob got 70 on the test, what is his z-score? (a-2) If Jane got 90 on the test, what is her z-score? (b) Compute the actual grades (5 points) (b-1) Suppose David achieved a grade 1.8 standard deviation above the mean (? = 1.8), what was his actual grade? (b-2) Suppose Lily achieved a grade 0.5 standard deviation below the mean (? = −0.5), what was her actual grade? (c) Rob achieved a grade that exceeded 95% of all grades. Find Rob’s actual grade. (6 points) (d) Suppose 32% of students did better than Mei. Find Mei’s actual grade. (6 points)

3. According to the U.S. Department of Agriculture, Alabama egg farmers produce millions of eggs every year. Suppose egg production per year in Alabama is normally distributed, with a standard deviation of 83 million eggs. (a) If during only 3% of the years Alabama egg farmers produce more than 2,655 million eggs, what is the mean egg production by Alabama farmers? (6 points) (b) Given the mean egg production in (a), what is the probability that Alabama egg farmers produces less than 1,500 million eggs? (5 points) (c) Given the mean egg production in (a), what is the probability that Alabama egg farmers produces eggs between 2,000 and 2,500 million eggs? (5 points)

4. Suppose the speeds of people driving from Dallas to Houston normally distributed, with a mean average speed of 92 miles per hour. (a) If the probability that the speed is more than 108 mph is 0.8%, what is the standard deviation? (6 points) (b) Given the standard deviation in (a), what is the probability that a person drove less than 85 miles per hour? (5 points) (c) If Ben drove at a speed that exceeds 85% of all other people. What was her speed? (6 points)

5. According to the U.S. Census Bureau, 20% of the workers in Atlanta use public transportation. Suppose 25 Atlanta workers are randomly selected. (Hint: use sampling distribution) (a) What is the standard deviation of the sample proportion of the selected workers who use public transportation? (5 points) (a) What is the probability that the proportion of the selected workers who use public transportation is less than 32%? (5 points) (b) What is the probability that the proportion of the selected workers who use public transportation is greater than 48%? (5 points)

6. Gross weights of 8-ounce boxes of cereal are normally distributed with mean 9.60 ounces and standard deviation 0.80 ounces. Boxes are packaged 24 per carton. Find the probability of randomly selected 24 boxes having average weight between 9.5 and 10 ounces. (Hint: use sampling distribution) (10 points)

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $358,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $143.70 (600 square feet @ $23.95 per hundred square feet). Calculate the customer margin earned on this job.

Prepare the first-stage allocation of costs to the activity cost pools.

Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 54-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)

The revenue from the Flying N Ranch was $143.70 (6 hundred square feet @ $23.95 per hundred square feet). Calculate the customer margin earned on this job. (Negative customer margins should be indicated with a minus sign. Round your intermediate calculations and final answers to 2 decimal places.)

1/1/17 Co buys land and pays $50,000 for the land, $500 for removal of scrap, $2500 for attorney’s fee (associated with land purchase), $2500 real estate commission, $5000 for accrued taxes and $1000 for current-year taxes. Journalize the land purchase.

Also on 1/1/17, Co buys a car and a computer. The car costs $25,000 , sales tax $2000 and insurance during delivery $1000. The car has an estimated 100,000 miles of useful life and a salvage value of $3000. The computer costs $3000, tax $400 and insurance during deliver of $100. The computer has and estimated useful life of 5 years and a salvage value of $500. Journalize the purchase of both.

On 12/31/17 the car has 10,000 miles on the odometer. Journalize the depreciation of the car using units of activity and the computer using straight-line.

On 7/1/18 the car has 15,000 on the odometer and was sold for $25,250. Make the appropriate journal entries.

12/31/18 Co exchanges computer for a new one and pays $500 cash in the trade. The fair market value of the old computer is $2000.   Remember the company is using straight line method for the computer. Make the appropriate journal entries.

1/1/19 Co pay $50,000 for a patent estimated to have a useful life of 10 years. Co also pays $10,000 research and development costs associated with the patent and $5000 legal costs to defend the patent in court. Make appropriate journal entries:

12/31/19 the company adjusts its books to reflect patent amortization. Make the appropriate journal entry.

If 5 years ago a company bought a $10,500 piece of equipment with $500 salvage value and 10 year usefull life and is using straight-line depreciation what is its book value now? If it revises estimated life to 15 years (10 more years left) what is revised annual depreciation?

What is the cost-allocation account for a natural resourse?

On January 1, Company sells merchandise and collects $5000 in cash which includes 6% sales tax. Journalize the sale.

Company’s employees earned $20,000 for the pay period ending January 31. The Company withholds $1530 FICA, $4373 Federal Income Tax and $585 State Income Tax. Journalize the entry.

On January 1 Company issues a 5 year $1,000,000 face value bond with a 5% annual coupon paid semiannually. The company issues it for $916,884 for an effective interest rate of 7% and uses the effective-interest amortization method. Journalize the issuance:

What is the total cost of the borrowing over the life of the SSS bond?

Journalize the entry on July 1 to record SSS’s payment of interest and the amortization of the bond discount (assume no accrual was made June 30):

What is the accrual JE on 12/31?

On July 1 Incorporation issues a 10 year $2,000,000 face value bond with a 6% coupon paid semiannually. The Company issues it for $2,327,029 at an effective interest rate of 4%. Journalize the issuance.

Journalize the adjustments made by Incorporation on December 31 for the accrual of interest expense and the amortization of bond premium.

On February 1, ABC redeems its $3,000,000 face value bonds before maturity at a price of $2,600,000. The bonds were originally issued at a discount and currently the account Discount on Bond Payable has a debit balance of $500,000. Journalize the bond redemption.

What is a sinking fund bond?

What is a secured bond?

When would a company exercise their call on a callable bond?

How do you calculate working capital and current ratio?

Why might a company choose to issue a bond instead of issuing stock?

What are the two components of a mortgage payment?

On October 1, 2017, Santana Rey launched a computer services company called Business Solutions, which provides consulting services, computer system installations, and custom program development. Rey adopts the calendar year for reporting purposes and expects to prepare the company’s first set of financial statements on December 31, 2017. The company’s initial chart of accounts follows.

Required:

1. Prepare journal entries to record each of the above transactions for Business Solutions.
2. Prepare ledger accounts (in balance column format) and post the journal entries from requirement 1 to them.
3. Prepare a trial balance as of the end of November.

Mr. and Mrs. Evans are an African American couple who retired from the school system last year. Both are 65 years of age and reside on 20 acres of land in a large rural community approximately 5 miles from a Superfundsite and 20 miles from two chemical plants. Their household consists of their two daughters, Anna, aged 40 years, and Dorothy, aged 42 years; their grandchildren, aged 25, 20, 19, and 18; and their 2-year-old great-grandson. Anna and Dorothy and their children all attended the university.

Mr. Evans’s mother and three of his nieces and nephews live next door. Mr. Evans’s mother has brothers, sisters, other sons and daughters, grandchildren, and great-grandchildren who live across the road on 10 acres of land. Other immediate and extended family live on the 80 acres adjacent to Mr. Evans’s mother. All members of the Evans family own the land on which they live. Mrs. Evans has siblings and extended family living on 70 acres of land adjacent to Mr. Evans’s family, who live across the road. Mr. and Mrs. Evans also have family living in Chicago, Detroit, New York, San Francisco, and Houston. Once a year, the families come together for a reunion. Every other month, local family members come together for a social hour. The family believes in strict discipline with lots of love. It is common to see adult members of the family discipline the younger children, regardless of who the parents are.

Mr. Evans has hypertension and diabetes. Mrs. Evans has hypertension. Both are on medication. Their daughter Dorothy is bipolar and is on medication. Within the last 5 years, Mr. Evans has had several relatives diagnosed with lung cancer and colon cancer. One of his maternal uncles died last year from lung cancer. Mrs. Evans has indicated on her driver’s license that she is an organ donor.

Sources of income for Mr. and Mrs. Evans are their pensions from the school system and Social Security. Dorothy receives SSI because she is unable to work any longer. Mr. Evans and his brothers must assume responsibility for their mother’s medical bills and medication. Although she has Medicare parts A and B, many of her expenses are not covered. Mr. and Mrs. Evans, all members of their household, and all other extended family in the community attend a large Baptist church in the city. Several family members, including Mr. and Mrs. Evans, sing in the choir, are members of the usher board, teach Bible classes, and do community ministry.

Study Questions

1. Describe the organizational structure of this family and identify strengths and limitations of this family structure.

2. Describe and give examples of what you believe to be the family’s values about education.

3. Discuss this family’s views about child rearing.

4. Discuss the role that spirituality plays in this family.

5. Identify two religious or spiritual practices in which members of the Evans family may engage for treating hypertension, diabetes, and mental illness.

6. Identify and discuss cultural views that Dorothy and her parents may have about mental illness and medication.

7. To what extent are members of the Evans family at risk for illnesses associated with environmental hazards?

8. Susan has decided to become an organ donor. Describe how you think the Evans family will respond to her decision.

9. Discuss views that African Americans have about advanced directives.

10. Name two dietary health risks for African Americans.

11. Identify five characteristics specific to African Americans to consider when assessing the skin of African Americans.

12. Describe two taboo views that African Americans may have about pregnancy.