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.

1

Which of the following entries records the withdrawal of cash for personal use by D. Bill, the owner of a business?

a.Debit Cash and credit Salary Expense

b.Debit Cash and credit D. Bill, Drawing

c.Debit D. Bill, Drawing and credit Cash

d.Debit Salary Expense and credit Cash

e.None of these choices are correct.

2

A purchase of supplies on account should be recorded as

a.a debit to Supplies and a credit to Cash.

b.a debit to Supplies and a credit to Accounts Payable.

c.a debit to Accounts Payable and a credit to Supplies.

d.a debit to Supplies Expense and a credit to Accounts Receivable.

e.None of these choices are correct.

3

The order the financial statements are prepared is as follows:

a.statement of owner's equity, income statement, balance sheet

b.balance sheet, income statement, statement of owner's equity

c.income statement, statement of owner's equity, balance sheet

d.income statement, balance sheet, statement of owner's equity

4

R. Davis Company has the following accounts and balances at the end of the year:

Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000

R. Davis, Capital at the beginning of the year was $2,050. Rob Davis also withdrew $800 from the company during the year. What is the amount of total assets reported on the balance sheet?

a.$3,080

b.$9,800

c.$4,480

d.$1,480

5

Jackson Company received cash on account from customers, $2,300. The accountant would record a

a.credit to income from services, $2,300.

b.debit to income from services, $2,300.

c.credit to accounts receivable, $2,300.

d.credit to cash, $2,300.

e.debit to accounts receivable, $2,300

6

Rent Expense is reported on which financial statement?

a.statement of owner's equity

b.balance sheet

c.income statement

d.None of these listed answers are correct.

7

A credit may result in

a.an increase in a revenue account.

b.an increase in a liability account.

c.an increase in the Capital account.

d.a decrease in an asset account.

e.All of these choices are correct.

8

Errors can occur for which of the following reason(s)?

a.Recording only half an entry

b.Recording two debits and no credits

c.Recording incorrect amounts

d.Arithmetic

e.All of these listed answers are correct.

Original Claim: The average age of all patients admitted to the hospital with infectious diseases is less than 65 years of age.

Test the claim using ? = 0.05 and assume your data is normally distributed and ? is unknown.

Q.) What is the value of the test-statistic? What is the p-value? What is the critical value?