Problem 1

Tallahassee Clinic projected the following budget information for 2018:

Construct Tallahassee Clinic’s static operating budget for 2018. (See Exhibit 8.3, page 283. Note that there are four components that need to be included: Volume Assumptions, Revenue Assumptions, Cost Assumptions, and the Pro Forma Profit and Loss or P&L projected Statement.)

Revenue Assumptions

Blue Cross Reimbursement                   900,000           (90,000 x 0.4 x 25)

Celtic Insurance Co Reimbursement      1,080,000        (90,000 x 0.6 x 20)

Total Revenue                                      $1,980,000

Cost Assumptions

Variable Expenses        

            Labor                                       1,200,000        (48,000 x 25)

            Supplies                                   150,000           (100,000 x 1.5)

            Total Variable Expense              1,350,000

            Fixed Costs                               500,000

Pro Forma Profit and Loss (P&L) Statement:

Revenue:

FFS 1,980,000

Costs:

Variable Costs 1,350,000

Contribution Margin 630,000

Fixed Costs 500,000

Projected Profit 130,000

Problem 2

Refer to Problem 1 above. Tallahassee Clinic’s actual results for 2018 are shown in the table below:

a. Construct Tallahassee Clinic’s flexible budget for 2018 and actual operating results for 2018. (Hint: place the three budgets side by side. See Exhibits 8.4 and 8.5).

b. What is the profit variance?

c. Wat is the revenue variance?

d. What is the cost variance?

e. Focus on the revenue side. What is the volume variance?

f. Focus on the revenue side. What is the price variance?

g. Focus on the cost side. What is the volume variance?

h. Focus on the cost side. What is the management variance?

I NEED PROBLEM 2 ANSWERED......SENT PROBLEM 1 FOR REFERENCE, IT ALREADY HAS THE ANSWERS. THANK YOU

1. A variable is normally distributed in the population with a mean of 100 and a standard deviation of 10. A sample of 20 is randomly selected. The probability that the sample mean is between 90 and 110 is _______ the probability that the variable is between 90 and 110.

2. Variance Analysis

Nail_It company is a manufacturer of a custom engraved hammers. For the year 2021, the weekly budget was as follows.

• Sales revenue $64,000: 2,000 hammers × price $32
• Variable costs:
  • Direct materials $10,000: 2,000 hammers × 1 lbs per hammer × price $5/lb
  • Direct labour $50,000: 2,000 hammers × 5 hour per hammer × rate $5/hour
  • no variable overhead
• Fixed costs: $3,000
• Profit: $1,000

The actual performance of the week was as follows.

• Sales revenue $70,400: 2,200 hammers × price $32
• Variable costs:
  • Direct materials $13,200: 2,200 hammers × 1 lbs per hammer × price $6/lb
  • Direct labour $46,200: 2,200 hammers × 3 hour per hammer × rate $7/hour
  • no variable overhead
• Fixed costs: $8,000
• Profit: $8,000

Required:

1) Compute the following variances

a) Spending and Volume Variances of Materials

b) Spending and Volume Variances of Labour

c) Spending and Volume Variances of Fixed Overhead

d) Materials Quantity Variance

e) Materials Price Variance

f) Labour Efficiency Variance

g) Labour Rate Variance

2) Nail_It company hired an experienced engineer and asked her to re-organize the production process. How could hiring an experienced engineer and their new production process explain the variances? Please comment on individual components of variances, their relations to other variances, and overall impact on profitability.

Nail_It company is a manufacture of a custom engraved hammer. For the year 2021, the weekly budget was as follows.

• Sales revenue $64,000: 2,000 hammers × price $32

• Variable costs: o Direct materials $10,000: 2,000 hammers × 1 lbs per hammer × price $5/lb o Direct labor $50,000: 2,000 hammers × 5 hour per hammer ×rate $5/hour o no variable overhead

• Fixed costs: $3,000 • Profit: $1,000

The actual performance of the week was as follows.

• Sales revenue $70,400: 2,200 hammers × price $32

• Variable costs: o Direct materials $13,200: 2,200 hammers × 1 lbs per hammer × price $6/lb o Direct labor $46,200: 2,200 hammers × 3 hour per hammer ×rate $7/hour o no variable overhead

• Fixed costs: $8,000 • Profit: $8,000

Required:

1) Compute the following variances

a) Sales Volume Variance b) Sales Price Variance c) Input Quantity Variance for Materials d) Input Price Variance for Materials e) Input Quantity Variance for Labor f) Input Price Variance for Labor

2) Nail_It company hired an experienced engineer and asked her to re-organize the production process. How could hiring an experienced engineer and their new production process explain the variances? Please comment on individual components of variances, their relations to other variances, and overall impact on profitability.

. Variance Analysis

Sourpatch company is a manufacturer of a custom engraved hammers. For the year 2021, the weekly budget was as follows.

• Sales revenue $64,000: 2,000 hammers × price $32
• Variable costs:
  • Direct materials $10,000: 2,000 hammers ×1 lbs per hammer×price $5/lb
  • Direct labour $50,000: 2,000 hammers× 5 hour per hammer× rate $5/hour
  • no variable overhead
• Fixed costs: $3,000
• Profit: $1,000

The actual performance of the week was as follows.

• Sales revenue $70,400: 2,200 hammers × price $32
• Variable costs:
  • Direct materials $13,200: 2,200 hammers ×1 lbs per hammer×price $6/lb
  • Direct labour $46,200: 2,200 hammers× 3 hour per hammer× rate $7/hour
  • no variable overhead
• Fixed costs: $8,000
• Profit: $8,000

Required:

1) Compute the following variances

a) Spending and Volume Variances of Materials

b) Spending and Volume Variances of Labour

c) Spending and Volume Variances of Fixed Overhead

c) Materials Quantity Variance

d) Materials Price Variance

e) Labour Efficiency Variance

f) Labour Rate Variance

2) SourPatch company hired an experienced engineer and asked her to re-organize the production process. How could hiring an experienced engineer and their new production process explain the variances? Please comment on individual components of variances, their relations to other variances, and overall impact on profitability.

20.      Which of the following is the major assumption as to cost and revenue behavior underlying conventional cost-volume-profit calculations?

21.      A cost or revenue is _________ if the change results in a difference between alternatives.

22.      The short-run differential costs of a product are $25. Fixed costs are $5 per unit based on 10,000 units produced during this period. The company has adequate capacity to accept a special order of 1,000 units. What is the minimum price that could be charged using the differential approach to pricing?

23.      Sebastian Enterprises sells a product for $25 per unit and has the following costs for the product

The company received a special order for 100 units of the product. The order would require rental of a special tool which costs $200. What is the minimum price per unit that Sebastian Enterprises should charge for this special order if they wish to earn a $300 profit on this order? Assume there is sufficient idle capacity to accept this order.

In C++ Create an abstract class called Shape Shape should have the following pure virtual functions: getArea() setArea() printArea() Create classes to inherit from the base class Circle Square Rectangle Both implement the functions derived from the abstract base class AND must have private variables and functions unique to them like double Radius double length calculateArea() Use the spreadsheet info.txt read in information about the circle, rectangle, or square

text file:

circle   3.5  
square   3  
rectangle   38   36
circle   23  
rectangle   2   13
square   12  
square   24  
square   1  
square   8  
square   27  
rectangle   22   13
rectangle   22   18
rectangle   14   27
circle   11  
circle   18  
square   5  

example output:

Name Area

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

circle 1 38.47 square 1 9.00 rectangle 1 1368.00 circle 2 1661.06 rectangle 2 26.00 square 2 144.00 square 3 576.00 square 4 1.00 square 5 64.00 square 6 729.00 rectangle 3 286.00 rectangle 4 396.00 rectangle 5 378.00 circle 3 379.94 circle 4 1017.36 square 7 25.00 *********************** Total Area 7098.82

Q2. In your audit of Aviary Corporation for calendar year 2016, you found a number of matters that you believe represent possible adjustments to the company’s books. These matters are describe below.

1. Inventory cutoff tests indicate that several sales transactions for goods shipped in 2016 were not recorded. Aviary Corporation uses a perpetual inventory system. The sales were on account, for a total amount of $30,000. The associated inventory cost was $10,000.

2. The company currently has set the allowance for bad debts account at $55,000. Your tests indicate that $85,000 is an appropriate amount for the allowance.

3. Equipment originally costing $800,000 that was fully depreciated with a residual value of $100,000 was sold for $140,000 in December 2016. The purchaser agreed to pay for the equipment by January 2017. No entry has been recorded for this transaction.

4. Miscellaneous expenses of $5,000 was incorrectly classified as accounts payable.

5. The company received new computer equipment valued at $50,000 on January 3, 2017, that had been ordered and shipped F.O.B. shipping point to Westmoreland on December 27, 2016. No entry has been recorded for this purchase, which was financed by a long-term note payable due in full June 30, 2018.

Requirements: 1 of 2: Propose auditor’s adjusting entries for the matters above.

2 of 2: Complete the Unadjusted Misstatement Audit Schedule below. Use positive numbers to indicate overstatements, and negative numbers to indicate understatements. Current Assets Noncurrent Assets Current Liabilities Noncurrent Liabilities Income Before Tax 1. 2. 3. 4. 5. Totals

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs:

Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.

Direct laborers worked 65,000 hours at a rate of $15 per hour.

Total variable manufacturing overhead for the month was $612,300.

1. What raw materials cost would be included in the company’s planning budget for March? and in the Flexible budget also for March?

2. What is the materials price variance for March? and materials quantity variance for March?

3. 5. If Preble had purchased 180,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials price variance for March?

4. If Preble had purchased 180,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials quantity variance for March?

Thank you

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 7%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $107 to purchase these supplies.

For years, Worley believed that the 7% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $33,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. Hint - Do not overlook the $33,000 cost of goods sold that Worley incurred serving each hospital. The company provides service to customers (instead of selling products), so there will be no direct material or direct labor costs.