According to the EPA’s prospective analysis of the 1990 to 2010 period, total social benefits (TSB) associated with the CAAA of 1990 are estimated at $690 billion ($1990) and the comparable total social cost (TSC) estimates are $180 billion ($1990). Explain why these data do not communicate whether the regulations outlined by the CAAA of 1990 are efficient.

Pillar Company manufactures a product in three different qualities, called ‘Basic’, ‘Average’ and ‘Super’. The ‘Basic’ and ‘Average’ both requires 2.0 direct labor hours while ‘Super’ requires 2.5 direct labor hours. The company is able to sell these products at a price that gives a standard profit mark-up of 25 % of full manufacturing cost. The company manufactures and sold 90,000 units, 60,000 units and 40,000 units of ‘Basic’, ‘Average’ and ‘Super’ respectively. Management is concerned by the deterioration of profit.

Material and labor costs per unit are as follows:

The total overheads are $10,000,000. Currently, the company is using direct labor-hour as an allocation base to apply overheads.

Recently, the business management accountant has undertaken an exercise to try to identify activities and cost drivers in an attempt to be able to deal with the overheads on a more precise basis using the activity based costing approach. An analysis has provided the following information:

Required:

1. Calculate the predetermined overhead rate using the current basis of allocation and determine the overhead per unit, total cost per unit and the selling price for the three models.

2. Calculate the activity rate, the overhead per unit, the total cost per unit for the three models using the activity based costing approach.

3. What conclusions do you draw based on the above results? What advice would you offer the management of the company?

Pillar Company manufactures a product in three different qualities, called ‘Basic’, ‘Average’ and ‘Super’. The ‘Basic’ and ‘Average’ both requires 2.0 direct labor hours while ‘Super’ requires 2.5 direct labor hours. The company is able to sell these products at a price that gives a standard profit mark-up of 25 % of full manufacturing cost. The company manufactures and sold 90,000 units, 60,000 units and 40,000 units of ‘Basic’, ‘Average’ and ‘Super’ respectively. Management is concerned by the deterioration of profit.

Material and labor costs per unit are as follows:

The total overheads are $10,000,000. Currently, the company is using direct labor-hour as an allocation base to apply overheads.

Recently, the business management accountant has undertaken an exercise to try to identify activities and cost drivers in an attempt to be able to deal with the overheads on a more precise basis using the activity based costing approach. An analysis has provided the following information:

Required:

1. Calculate the predetermined overhead rate using the current basis of allocation and determine the overhead per unit, total cost per unit and the selling price for the three models.

2. Calculate the activity rate, the overhead per unit, the total cost per unit for the three models using the activity based costing approach.

3. What conclusions do you draw based on the above results? What advice would you offer the management of the company?

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers 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 61 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,600 per month plus $44 per course plus $7 per student. The company’s sales should average $900 per student.

The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below:

Required:

Prepare a 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.)

1) Bustillo Company operates sight-seeing buses. Management has identified two cost drivers—the number of buses in operation and the number of passengers served —that it uses in its budgeting and performance reports. Data concerning the company’s cost formulas appear below:

For example, vehicle operating costs should be $6,800 per month plus $476 per bus plus $4.5 per passenger. The company’s sales revenue should average $31 per passenger. In July, the company operated 54 buses and served a total of 3,300 passengers. How much is the company’s flexible budget operating income for July?

2)

A cash budget for the first three quarters of Brister Incorporated is given below (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. If necessary, the company will borrow money from its bank to maintain this balance. The company will pay no interest in Quarters 1, 2, and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter?

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers 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 65 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,800 per month plus $41 per course plus $6 per student. The company’s sales should average $870 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September appear below:

Required:

Prepare a 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.)

Please find the following ratio for Southwest Airlines

Debt ratio = total debt/total assets

Indicates what percentage of an organizations assets are financed by debt

Co. XYZ has the following information from its income statement: Total current liabilities $ 805,000 Total Assets $ 2,655,000 Fixed and other assets $ 1,770,000 Long term debt

$ 200,000 What is the total amount of current assets? What is the amount of Stockholders equity of the firm? What is the amount of net working capital of the firm?