Problem 8-26B Computing materials, labor, and fixed cost variances

Shaffer Corporation makes mouse pads for computer users. After the first year of operation, Peggy Shaffer, the president and chief executive officer, was eager to determine the efficiency of the company’s operation. In her analysis, she used the following standards provided by her assistant:

Shaffer purchased and used 460,000 square feet of material at an average cost of $0.96 per square foot. Labor usage amounted to 79,200 hours at an average of $19.60 per hour. Actual production amounted to 416,000 units. Actual fixed overhead costs amounted to $408,000. The company completed and sold all inventory for $3,400,000.

Required

a. Prepare a materials variance information table showing the standard price, the actual price, the standard quantity, and the actual quantity.

b. Calculate the materials price and usage variances and indicate whether they are favorable (F) or unfavorable (U).

c. Prepare a labor variance information table showing the standard price, the actual price, the standard hours, and the actual hours.

d. Calculate the labor price and usage variances and indicate whether they are favorable (F) or unfavorable (U).

e. Calculate the predetermined overhead rate, assuming that Shaffer uses the number of units as the allocation base.

f. Calculate the fixed cost spending and volume variances and indicate whether they are favorable (F) or unfavorable (U).

g. Determine the amount of gross margin Shaffer would report on the year-end income statement.

Let's imagine the market for imported steel. Let's say in autarky our country has an equilibrium price of 250 dollars per ton(Pa = 250), and the equilibrium quantity of 500 per ton(Qa = 500)

Let's also say that the world price is currently 200 dollars per ton(Pw = 200). At this price quantity supplied would be 400 (Qs=400) and the quantity demand would be 600(Qd = 600)

a)First lets assume that home is a large country. I want you to graph both the home market for steel and the world market for steel, make sure to graph all points and label all axes. Note that the intercept for supply in home is 0 dollar (S0 = 0) and the intercept for demand curve in home is 1000 dollars(D0 = 1000)

b)Now, let's suppose home imposes some tariff(t). At this price quantity supplied at home would be 450(Qs=450) and quantity demanded at home would be 550 (Qd = 550). I need you to illustrate this tarriff's on home and the world graphs, label all points.

c)Next, I'll need you to tell me the change in home welfare due to this tariff. You will need label all the areas that have changed because of the tariff as well as telling me the change in welfare by telling me what areas have changed from each group. NOTE: I'm not expecting an explicit numerical value.

d)Finally give your answer to (b) and (c), would there a difference in effect of being a large country with tariff versus a small country with tariff? Specifically is there a difference between price consumers pay and the price international producers receive between each model? Are welfare losses(or gains) the same between each country? Is there any other special effect of being a large country and imposing a tariff?

1) Apple was effectively a monopolist in the tablet computer market in the spring of 2010. You could go for the iPad or, well, the iPad. It didn’t even come in a choice of colors. Suppose the marginal cost of producing iPads is constant at $200, and the inverse demand curve for iPads is P = 1,000 – 5Q (where Q in millions and P in dollars). The associated marginal revenue is MR = 1,000 – 10Q.

1. How much should Apple charge, and how many will it sell at that price?
2. Compute the consumer surplus and Apple’s producer surplus. (It is helpful if you draw the demand and MC curves first. Recall that CS is the area under demand curve and above the price. PS is the area below the price and above the MC).
3. Now let’s think about how market would look like if Apple behaved like a competitive firm and priced at marginal cost. How many iPads will Apple? Compute the new consumer surplus and Apple’s producer surplus.
4. Compute the value of the “deadweight loss” from monopolization? (Note: One method, use the producer and consumer surpluses you found in parts (b) and (c). Another method, compute the DWL directly by finding the area of the triangle).
5. Draw your results you found in parts (a) – (d) in one P-Q space.
6. Suppose a government regulatory agency sets a price ceiling of $400 per iPad. How many iPads will Apple sell, and what will be its producer surplus?
7. Compute and compare the degrees of monopoly power (Lerner Index) for cases in (a), (c), and (f).
8. Suppose, instead of price ceiling, government imposes a per unit tax of $200. Find the Apple’s price, quantity and producer surplus for iPad.

I have a - e I just need help on f - h

A. Working at Music Best

You are planning a road trip and want to create a playlist of your favorite songs. Assume that the song titles are in an array of strings. Create a shuffle of your songs (permutation of your original songs). Use the Fisher-Yates shuffle algorithm that works in O(n) running time. We will use a method that creates pseudo-random numbers (see end for help) in O(1) running time. The basic idea is to start from the last element, swap it with a randomly selected element from the whole array (including last). In the next step, you will consider the array from 0 to n-2 (size reduced by1), and repeat the process until you reach the first element. Write a program that uses the provided Playlist.txt as input and outputs the shuffled array in a file called LastNameFirstNamePlaylist.txt. Follow the next pseudocode: To shuffle an array a of n elements (indices 0..n-1):

for i=n-1 down to 1 j= random integer with 0 <= j < i

exchange a[j] and a[i]

Count the time to read from the file, to shuffle the songs and to create the output. Note: To count the time use system.currentTimeMillis().

Create appropriate JUnits to test your program. Help with JUnits:

Instructions for developing JUnit:

• To compare two text files in Junit, you can try the following code. Use BufferedReader to read the input files.

BufferedReader Out=new BufferedReader (new FileReader (<Path of output file>));

BufferedReader In=new BufferedReader (new FileReader (<Path of input file>));

while ((expectedLine = In.readLine ()) != null) {

String actualLine = Out.readLine ();

assertEquals (expectedLine, actualLine);

}

• Set seed value as 20.

Random r=new Random();

r.setSeed(20);

Compare the output file with attached see next:

if you use nextDouble() use Target1.txt to compare

double d = random.nextDouble();

int j = (int)(d*arr.length);

else if you use nextInt() use Target2.txt

Programming Standards:

• Your header comment must describe what your program does.

• You must include a comment explaining the purpose of every variable or named constant you use in your program.

• You must use meaningful identifier names that suggest the meaning or purpose of the constant, variable, function, etc.

• Precede every major block of your code with a comment explaining its purpose. You don't have to describe how it works unless you do something tricky.

• You must use indentation and blank lines to make control structures more readable.

Deliverables:

Your main grade will be based on (a) how well your tests cover your own code, (b) how well your code does on your tests (create for all non-trivial methods), and (c) how well your code does on my tests (which you have to add to your test file). For JUnit tests check canvas.

Use cs146S19.<lastname>.project1 as your package, and Test classes should be your main java file, along with your JUnit java tests.

Do not use any fancy libraries. We should be able to compile it under standard installs. Include a readme file on how to compile the project.

***********************************************************************************************************************************************************************************************************

MY SOLUTION:

package RandomMusic;

import static org.junit.Assert.*;
import org.junit.Test;
import java.io.BufferedReader;
import java.io.File;
import java.io.FileReader;
import java.io.IOException;
import java.util.Random;

*playMusicTest.java

public class playMusicTest {

@Test
public void playMusictest() throws IOException
{
  
File file = new File("src\\RandomMusic\\Playlist.txt");
File file1 = new File("src\\RandomMusic\\Target1.txt");
// read input playlist
BufferedReader in = new BufferedReader(new FileReader(file));
// read output target
BufferedReader out = new BufferedReader(new FileReader(file1));
  
String[] playList = new String[459]; // create an array
int i=0; // element of array
String str;
  
// read content of Playlist.txt then copy the content to array
while((str = in.readLine())!=null)
{
playList[i] = str;
i++;
}
  
// random number
Random rand = new Random(0);
rand.setSeed(20);
  
// swap the chosing song.
for(int j = playList.length - 1;j>0;j--)
{
int index = rand.nextInt(j);
String tmp;
tmp = playList[index];
playList[index] = playList[j];
playList[j]= tmp;
}
  
// compare output of playlist = content of target file
for(int k=0; k<playList.length;k++)
{
String actualLine = out.readLine();
assertEquals(playList[k],actualLine);
  
}
  
}

}

*RandomMusic.java

package RandomMusic;

import java.io.File;
import java.io.BufferedReader;
import java.io.FileReader;
import java.util.Random;
import java.io.*;

public class RandomMusic {
  
String[] playList = new String[459]; // String of playList
int i = 0;
Random rand; // random
BufferedReader in; // read file
  
  
// Open a Text File
public void openFile() throws IOException
{
try {
File file = new File("src\\RandomMusic\\Playlist.txt");
in = new BufferedReader(new FileReader(file));
String str;
while((str = in.readLine())!=null)
{
playList[i] = str;
i++;
}
  
} catch(Exception e) {
System.out.println("Could not find the data file!");
}
  
}
  
// close File
public void closeFile() throws IOException
{
in.close();
  
}

// Swap song in playlist
public void swap(int index, int j)
{
String tmp;
tmp = playList[index];
playList[index] = playList[j];
playList[j]= tmp;
}
  
// Random song in playlist then swap if the song chose
public void playMusic()
{
rand = new Random();
for(int j = playList.length - 1;j>0;j--)
{
int index = rand.nextInt(j);
swap(index,j);
}
}
  
// print out playlist
public void printOut()
{
for(int j=0; j<playList.length;j++)
{
System.out.println(playList[j]);
}
}
  
// Main program
public static void main(String[] args) throws IOException
{
RandomMusic favorMusic = new RandomMusic(); // create RandomMusic
favorMusic.openFile(); // read file
favorMusic.playMusic(); // random music
favorMusic.printOut(); // print out playlist
favorMusic.closeFile(); // close file
}

}

*openFileTest

package RandomMusic;

import static org.junit.Assert.*;
import java.io.File;
import java.io.IOException;

import org.junit.Test;

// Check playlist file is exists
public class openFileTest {

@Test
public void openFiletest() throws IOException
{
File file = new File("src\\RandomMusic\\Playlist.txt");
assertTrue(file.exists());
}

  
}

************************************************

I am getting error in playMusicTest.java.... Please help.

1) “Demand” is best defined as the relationship between:

1. the price of a good and the quantity consumers are willing and able to buy at each price level.
2. the current price of a good and the quantity demanded at that price.
3. the quantity supplied and the price people are willing to pay for a good.
4. the amount of income someone has and the price he is willing to pay for a good.

2) A home theater system and an HD television would be considered an example of:

A) substitute goods.

2. giffen goods.
3. inferior goods.
4. complementary goods.

3) Many people consider hot dogs to be an inferior good. For such people, all else held constant, a decrease in income would cause their demand for hot dogs to:

1. increase.
2. stay the same.
3. decrease.
4. cannot be determined with the information given.

4) If movies on DVD for home rental and movies seen at a theater are substitutes, and the price of movies seen at a theater increases, the demand for movies on DVD will:

A) increase.

2. stay the same.
3. decrease.
4. cannot be determined.

5) Which of the following is not considered a factor that influences supply?

A) Technology.

2. Production taxes and subsidies.
3. The number of buyers.
4. Resource prices.

6) For the U.S. economy, the largest expenditure category is:

A) government expenditures.

2. net export expenditures.
3. personal consumption expenditures.
4. investment expenditures.

7) Greater consumer confidence, wealth, available consumer credit, and disposable income ________ personal consumption expenditures.

1. increase
2. decrease
3. have no effect on
4. none of the above

8) Higher expected profits and business confidence ________ investment spending.

A) decrease

2. increase
3. do not affect
4. none of the above.

9) Appreciation of the U.S. dollar will ________ exports and ________ imports, other things equal.

1. increase; increase
2. increase; decrease
3. decrease; decrease
4. decrease; increase

10) The reserve requirement is 0.20. What is the simple deposit multiplier?

A) 1

2. 5
3. 0.10
4. 100

11) The interest rate that commercial banks charge each other for loans of reserves to meet their minimum reserve requirements is called:

A) treasury bill rate.

2. federal funds rate.
3. prime interest rate.
4. none of the above.

12) An increase in the reserve requirement would:

1. decrease excess reserves and reflect an expansionary monetary policy.
2. decrease excess reserves and reflect a contractionary monetary policy.
3. increase excess reserves and reflect an expansionary monetary policy.
4. increase excess reserves and reflect a contractionary monetary policy.

A new American graduate is contemplating buying a Japanese, German, or an American car. No matter the type of car, he plans to buy a new one at the end of 8 years. Japanese car will cost $30,000 and have a fuel usage of 23 Miles Per gallon (mpg) for the first 2 years, and will decrease by 3% per year thereafter. Repair cost will start at $700 per year, and increase by 3% per year. At the end of year 8, the car can be sold for $5000. Insurance cost will be $700 for the first year, increasing by 2% per year thereafter.

A German car will cost $45,000 and have fuel usage of 21mpg for the first 5 years, and decrease by 1% thereafter to year 8. Repair cost will start at $1000 in year 1 and increase by 4% per year. It will have a salvage value of $7000 at the end of year 8. Insurance cost will be $850 the first year, increasing by 2% per year thereafter.
The American car will cost $35,000 and have fuel usage of 20mpg for the first 3 years, and will decrease by 3% per year thereafter. Repair cost will be $800 in year 1, increasing by 4% per year thereafter. Being an American, the graduate will price the pride of owning an American car at $0.4 for every 20 miles driven, increasing by 2% per year. Insurance cost will be $800 per year increasing by 2.2% per year. The car can be sold for $5500 at the end of year 8.
If the graduate anticipates driving 150000 miles by the end of year 8 and the average interest rate is expected to remain at 5% per year, which car is economically affordable based on present worth analysis? Assume fuel cost will be $3 per gallon in year 1 and increase by an average of 2% per year. Show all your workings.