13-)

In a Cournot duopoly, firms 1 and 2, produce Y1 and Y2, respectively. They have identical total cost function C(Yi) = 2 Yi, i = 1, 2. The market demand function is Y = 20 - p, where Y = Y1 + Y2. The market price p in a Cournot equilibrium is:

Select one:

a. 8

b. 20

c. 12

d. 4

14-)

Which of the following is not a decision faced by a firm in a perfectly competitive industry?

Select one:

a. how to produce

b. what price to charge

c. how much of each input to use

d. how much to produce

15-)

One of the following will not, “ceteris paribus,” cause the demand curve for good A to shift

Select one:

a. a change in the price of A

b. a change in the price of B, a complement

c. a change in the price of C, a substitute

d. an increase in average income

16-)

A monopolist has inverse demand function p = 80 - q where q is the quantity to be produced, and cost function C (q) = 40. What is monopolist's total revenue R, if he produces the profit maximizing output?

Select one:

a. 900

b. 1260

c. 1600

d. 1200

17-)

Marginal Cost

Select one:

a. can be calculated by multiplying ATC (average total cost) by the number of units produced

b. is the increase in total costs that results from increasing production by one unit

c. can be calculated by multiplying AVC (average variable cost) by the number of units produced

d. is the increase in fixed costs that results from increasing production by one unit

Sweet Corporation is in the dairy business. Products go through two production departments (A first, then B). Data from those departments for October 2020 are presented below.

Complete the four steps necessary to prepare a production cost report.

Department A
Department B

Beginning work in process
Beginning work in process

Number of units
1,000
200

% complete for materials
100%

% complete for transferred-in

100%

% complete for conversion
60%
30%

Total materials cost
$24,000
-0-

Total conversion cost
$30,000
$40,000

Total transferred-in costs

$15,000

Department A
Department B

Ending work in process
Ending work in process

Number of units
600
300

% complete for materials
100%

% complete for transferred-in

100%

% complete for conversion
30%
40%

Sweet Corporation started 2,600 units of product during the month in department A. Costs incurred in department A for October 2020 totalled $64,000 for material and $132,000 for conversion. Additionally, department B incurred conversion costs in October 2020 of $600,000. Department B adds no materials to the product.
Instructions

a. Journalize the transfer of goods from department A to department B during October 2020. Sweet Corporation accounts for its costs using the weighted-average method.

$226,163

b. Prepare a production cost report for department B for October 2020.

Total cost of units completed: $833,123 (Weygandt, 12/2017, pp. 159-160) Weygandt, J. J., Kimmel, P. D., Kieso, D. E., Aly, I. M. (2017). Managerial Accounting: Tools for Business Decision-Making, Canadian Edition, 5th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119403999 Always check citation for accuracy before use.

Silicon Industries is a decentralized company with two divisions: mining and processing. They are both evaluated as profit centres. The mining division transfers raw diamonds to the processing division. The processing division is currently operating at 1 million kg below its capacity, while the mining division is operating at full capacity. The mining division can sell raw diamonds externally at $75 per kilogram. The unit cost of 1 kg of polished diamonds produced by the processing division is as follows: Raw diamonds $75, Direct materials $10, Direct labour ($20/hour) $30, Variable manufacturing overhead $20, Fixed manufacturing overhead $50, Total unit cost $185 The processing division has just received an order from International Diamonds Co. for 300,000 kg of polished diamonds at a price of $175 per kilogram. Silicon has a policy that prohibits selling any product below total cost. The total cost of a kilogram of raw diamonds in the mining division is $60, of which 25% is company fixed costs. Requirements (a) Would Silicon as a whole benefit if the raw diamonds were transferred to the processing division at $60 per kilogram to fill the order from International Diamonds? Show all calculations. (b) Briefly explain whether anything is wrong with Silicon's policy that no product should be sold below total cost. (c) Calculate the minimum and maximum transfer prices that could be used. (d) Recommend an appropriate transfer price for raw diamonds sold by the mining division to the processing division. Explain your answer. (e) If the mining division was not operating at full capacity, would your answer in part (d) be different?

Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder.  

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.

2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs):

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,700 per month plus $45 per course plus $5 per student. The company’s sales should average $890 per student.

The actual operating results for September appear below:

Required:

1. The Gourmand Cooking School expects to run four courses with a total of 64 students in September. Complete the company’s planning budget for this level of activity.

2. The school actually ran four courses with a total of 56 students in September. Complete the company’s flexible budget for this level of activity.

3. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Maetins Ltd. manufactures a variety of high-volume and low-volume products to customer demand. Presented is information on 2009 manufacturing overhead and activity cost drivers. Level Total Cost Units of Cost Driver Unit $300,000 20,000 machine hours Batch 300,000 1,000 customer orders Product 100,000 50 products Product X1 required 2,000 machine hours to fill 10 customer orders for a total of 8,000 units. (a) Assuming all manufacturing overhead is estimated and predicted on the basis of machine hours, determine the predicted total overhead costs to produce the 8,000 units of product X1. t (b) Assuming manufacturing overhead is estimated and predicted using separate rates for machine hours, customer orders, and products (a multiple-level cost hierarchy), determine the predicted total overhead costs to produce the 8,000 units of product X1. (c) Calculate the error in predicting manufacturing overhead using machine hours versus using multiple cost drivers. Indicate whether the use of only machine hours results in overpredicting or underpredicting the costs to produce 8,000 units of product X1. (d) Determine the error in the prediction of X1 batch-level costs resulting from the use of only machine hours. Indicate whether the use of only machine hours results in overpredicting or underpredicting the batch-level costs of product X1. (e) Determine the error in the prediction of X1 product-level costs resulting from the use of only machine hours. Indicate whether the use of only machine hours results in overpredicting or underpredicting the product-level costs of product X1.

Werger Manufacturing Corporation has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labor-hours (DLHs). The company has two products, W82R and L48S, about which it has provided the following data:

The company's estimated total manufacturing overhead for the year is $3,347,900 and the company's estimated total direct labor-hours for the year is 75,120.

The company is considering using a variation of activity-based costing to determine its unit product costs for external reports. Data for this proposed activity-based costing system appear below:

Required:

a. Determine the unit product cost of each of the company's two products under the traditional costing system.

b. Determine the unit product cost of each of the company's two products under activity-based costing system.

(For all requirements, round your intermediate calculations and final answers to 2 decimal places.)

W824 L48S

a. Unit Produced Cost ______ ________

b. Unit Produced Cost _______ __________

Users may order one or more pizzas, where each pizza may be either: small, medium or large. Small pizzas cost $5, medium pizzas cost $8 and large pizzas cost $12. All pizzas come on a tomato base (for our pizza shop, this will be the only option), and will have the topping cheese by default, at no extra cost. Users may choose up to a maximum of four additional toppings (bringing the total to five) from the following list, where each topping adds an additional $1 to the price of the pizza:  Bacon,  Olives,  Ham,  Mushrooms, ITECH5403 – Comparative Programming Languages School of Science, Engineering and Information Technology CRICOS Provider No. 00103D Page 2 of 4  Pineapple,  Salami,  Anchovies. A pizza order consists of an order for one or more pizzas, where each pizza has a size, and may optionally include a list of up to four additional toppings. Each pizza order must be marked as either to be collected or to be delivered. If the pizza is to be collected then the order requires a name and a phone number to be valid. If the pizza is to be delivered then a name, phone number and address are required to be valid. In addition, if the order total is less than $30 then an $8 delivery fee is added to the total. The application must be error tolerant and capable of accepting keyboard input to store a number of pizza orders in memory (they do not have to be persisted to file), as well as displaying an order summary which include details of all orders, including:  The details of each pizza in the order,  The total cost of the order, and  The name, phone number and (if required) address of the person who made the order. Program code in LISP ?