Plant-wide, department, and ABC indirect cost rates. Automotive Products (AP) designs and produces automotive parts. In 2014, actual variable manufacturing overhead is $308,600. AP's simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of it customers has regularly complained of being charged noncompetitive prices, so AP's controller Devon Smith realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information.

Usage of Cost Drivers by Customer Contract

Required information

[The following information applies to the questions displayed below.]

Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts.

In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company’s new merchandising activities. Its transactions for January through March follow:

The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation:

1. The March 31 amount of computer supplies still available totals $2,095.
2. Prepaid Insurance coverage of $609 expired during this 3-month period.
3. Lyn Addie has not been paid for seven days of work at the rate of $215 per day.
4. Prepaid rent of $2,535 expired during this 3-month period.
5. Depreciation on the computer equipment for January 1 through March 31 is $1,220.
6. Depreciation on the office equipment for January 1 through March 31 is $220.
7. The March 31 amount of merchandise inventory still available totals $644.

Part 1: Prepare journal entries to record each of the January through March transactions.

Part 2: Post the journal entries in part 1 to the accounts in the company’s general ledger. Note: Begin with the ledger’s post-closing adjusted balances as of December 31, 2019.

Part 3: Prepare 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger.

Part 4a) Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018.
(a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses

Part 4b) Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018.
(b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses as general and administrative.

Part 5) Prepare a statement of owner’s equity (from the adjusted trial balance in part 3) for the three months ended March 31, 2020.

Part 6) Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020.

Case Study

You are working the night shift on a medical unit and have been assigned charge nurse responsibilities. You are working with four RNs, one LPN, and two UAPs. A client becomes pulseless and is not breathing, and the nurse assigned to the client’s care calls a code. The nurse is occupied at this client’s bedside for 1.5 hours until the resuscitation effort is completed, and the client is transferred to the intensive care unit. This nurse also has four other assigned clients. In addition to the nurse assigned to care for the client requiring resuscitation, two of the other nurses working on your unit are assisting in the code.

Review the case study and write an essay (suggested length of 2–3 pages) in which you do the following:

Discuss what tasks could you delegate to the UAPs?

The LPN working on the unit is a new graduate and has been employed for only 4 weeks. How would you collaborate with this nurse when delegating tasks for completion?

Discuss how you will maintain the safety of the other clients on your unit while three nurses are occupied with the client requiring resuscitation?

Explain how might effective delegation to other team members contribute to care of the clients on the unit?

At a chip manufacturing plant, four technicians, (A, B, C, D) produce three products (Products 1, 2, and 3). This month, the chip manufacturer can sell 80 units of Product 1, 50 units of Product 2 and, at most, 50 units of Product 3. Technician A can make only Product 1 and 3. Techncian B can make only Products 1 and 2. Technician C can make only Product 3. Techncian D can make only Product 2. For each unit produced, the products contribute the following profit: Product 1, $6, Product 2, $7, Product 3, $10. The time (in hours) each technician needs to manufacture a product is as follows:

Each technician can work up to 120 hours per month. How can the chip manufacturer maximize it’s monthly profit? Assume a fractional number of units can be produced.

Alex, 2-years old and the first child for parents Michael and Kim, was diagnosed with Cystic Fibrosis one year ago. The pediatric nurse practitioner recommended testing for Cystic Fibrosis after seeing Alex for his 9-month well-child check-up and discovering that he measured very low on growth and weight charts in comparison to other 9-month-old babies. Alex has had three respiratory infections in the last 6 months that have required hospitalization. You are the home care nurse that is assigned to develop a home care strategy for Alex and his family following discharge from his most recent hospitalization.

In a 3-4-page recommendation paper:

• Determine the community resources needed to promote health and minimize hospitalizations for Alex
• Identifies members of the interprofessional care team that will contribute to management of Alex’s chronic illness (Michael and Kim, Alex’s parents, are integral members of this team) and the role each would play in the management of Alex’s condition.
• Describes evidence-based therapeutic communication strategies that you would use with Alex, his parents, and the interprofessional care team.

please the answers should be 3 - 4 pages, double spaced, font size of 12.

Recent trends in globalization have forced businesses around the world to more keenly focus on profitability. This trend is also present in Japan, where historical links between banks and businesses have traditionally blurred the goals of firms. For example, the Japanese business engineering firm, Mitsui & Co. Ltd., recently launched “Challenge 21”. A plan directed at helping the company emerge as Japan’s leading business engineering group. According to a spokesperson for the company.” [ This plan permits us to] create new value and maximize profitability by taking steps such as renewing our management framework and prioritizing the allocation of our resources into strategic areas. We are committed to maximizing shareholder value through business conduct that balances the pursuit of earnings with socially responsible behavior.” Ultimately, the goal of any continuing company must be to maximize the value of the firm. This goal is often achieved by trying to hit intermediate targets, such as minimizing costs or increasing market share. If you as a manager- do not maximize your firm’s value over time, you will be in danger of either going out of business, being taken over by other owners (as in a leveraged buyout), or having stockholders elect to replace you and other managers. Source: “Mitsui & Co., Ltd. UK Regulatory Announcement: Final Results.” Business Wire, May 13, 2004.

Questions

1. What is (Challenge 21 ) plan of Mitsui & Co., Ltd.

2. What were the objectives of the management of Mitsui & Co., Ltd

. 3. What are the threats of not maximizing a firm’s value.

Recent trends in globalization have forced businesses around the world to more keenly focus on profitability. This trend is also present in Japan, where historical links between banks and businesses have traditionally blurred the goals of firms. For example, the Japanese business engineering firm, Mitsui & Co. Ltd., recently launched “Challenge 21”. A plan directed at helping the company emerge as Japan’s leading business engineering group. According to a spokesperson for the company.” [ This plan permits us to] create new value and maximize profitability by taking steps such as renewing our management framework and prioritizing the allocation of our resources into strategic areas. We are committed to maximizing shareholder value through business conduct that balances the pursuit of earnings with socially responsible behavior.” Ultimately, the goal of any continuing company must be to maximize the value of the firm. This goal is often achieved by trying to hit intermediate targets, such as minimizing costs or increasing market share. If you as a manager- do not maximize your firm’s value over time, you will be in danger of either going out of business, being taken over by other owners (as in a leveraged buyout), or having stockholders elect to replace you and other managers. Source: “Mitsui & Co., Ltd. UK Regulatory Announcement: Final Results.” Business Wire, May 13, 2004.

Questions

1. What is (Challenge 21 ) plan of Mitsui & Co., Ltd.

2. What were the objectives of the management of Mitsui & Co., Ltd .

3. What are the threats of not maximizing a firm’s value.

Concert Nation] Concert Nation, INC. is a nationwide promoter of rock concerts. The president of
the company wants to develop a model to estimate the revenue of a major concert event at large venues
(such as Ford Field, Madison Square Gardens) for planning marketing strategies. The company has
collected revenue data of 32 recent large concert events. For each concert, they have also recorded the
attendance, the number of concession stands in the venue, and the Billboard chart of the artist in the
week of each event. This data is available in “Tickets”. They have two potential models that could
explain the revenue. The two competing models are:

Model A: ??????? = ?? + ???????????? + ???????????? + ??????????? + ?0123?

Model B: ??????? = ?? + ???????????? + ??????????? + ?012?

Run regression on both models. Use only the regression outputs of the two models and the original data
to answer questions 1 to 7 below.
1. [1 pt] Let’s consider the model A first. What does the result of F-test indicate?
(a) The p-value of F-test is 100.83. Thus, the model does not significantly explain the revenue.
(b) The p-value of F-test is close to zero. Thus, all independent variables in the regression model are
statistically significant.
(c) The p-value of F-test is close to zero. This indicates that at least some independent variables in the
regression model significantly explain the revenue.
(d) This indicates weak evidence of a linear relationship, because the p-value is very low.
2
2. [1 pt] If we use model A for prediction, what is the point estimate for the revenue of a concert that has
attendance of 50,000 people, 5 concession stands, and the song ranked in no. 15 in the Billboard ranking?
(a) $3.145 M
(b) $2.851 M
(c) $3.252 M
(d) $340K
3. [1 pt] What is an approximate 95% prediction interval for the concert listed in the previous question?
(a) [$2.757M, $3.533M]
(b) [$2.463M, $3.239M]
(c) [$2.368M, $3.922M]
(d) [$2.074M, $3.628M]
4. [1 pt] Which of the following statement is correct?
(a) The estimated slope for the attendance is only $59.2. This means that, when keeping everything
else the same, the revenue does not depend much on the attendance.
(b) The t-statistic associated with the slope for the attendance variable is 16.9. This means that there is
too much noise to determine if the slope is definitely positive.
(c) The p-value for the concession variable is 0.933. This means that the number of concession stands
is not a statistically significant variable to determine the revenue.
(d) The p-value for the concession variable is 0.933. This means that the number of concession stands
is a statistically significant variable to determine the revenue.
5. [1 pt] Is it appropriate to use model A as a final model to estimate the revenue of a concert?
(a) Yes. All independent variables are statistically significant.
(b) Yes, because the analysis indicates a linear relationship between revenue and attendance.
(c) No, because not all independent variables are statistically important. Thus, revision is necessary.
(d) No, because some of the slopes were negative. Thus, revision is necessary.
3
6. [1 pt] Now, consider model B. According to model B, what is a point estimate for a concert that has
attendance of 50000 people, 5 concession stands, and the song ranked in no. 15 in the Billboard ranking?
(a) $3.147M
(b) $2.839M
(c) $7.139M
(d) $13.637M
7. [1 pt] Based on the regression outputs, which model would you consider more suitable for predicting the
revenue between the two models– Model A and Model B?
(a) Model A is more suitable, because it has a higher ?2, lower standard error of the estimates
(??), and lower F-test p-value.
(b) Model A is more suitable because the fraction of SST accounted for by the residuals is higher than
for model B.
(c) Model B is more suitable, because, while both models have similar ?2 and F-test p-value, model B
has lower standard error of the estimates (??) and all independent variables are statistically
significant.
(d) Model B is more suitable, because the slope coefficient is larger in magnitude.

The director of admissions of a small college selected 120 students at random from the new freshman class in a study to determine whether a student’s grade point average (GPA) at the end of the freshman year (y) can be predicted from the ACT test score (x1).

GPA ACT ITS RP   
3.897 21 122 99
3.885 14 132 71
3.778 28 119 95
2.540 22 99 75
3.028 21 131 46
3.865 31 139 77
2.962 32 113 85
3.961 27 136 99
0.500 29 75 13
3.178 26 106 97
3.310 24 125 69
3.538 30 142 99
3.083 24 120 97
3.013 24 107 55
3.245 33 125 93
2.963 27 121 80
3.522 25 119 63
3.013 31 128 78
2.947 25 106 93
2.118 20 123 22
2.563 24 111 84
3.357 21 113 87
3.731 28 134 98
3.925 27 128 95
3.556 28 126 63
3.101 26 121 79
2.420 28 104 86
2.579 22 113 90
3.871 26 133 97
3.060 21 125 39
3.927 25 128 97
2.375 16 112 57
2.929 28 107 67
3.375 26 115 81
2.857 22 119 75
3.072 24 113 63
3.381 21 115 15
3.290 30 110 95
3.549 27 122 93
3.646 26 118 99
2.978 26 114 90
2.654 30 112 99
2.540 24 106 85
2.250 26 95 84
2.069 29 102 58
2.617 24 114 86
2.183 31 116 82
2.000 15 93 34
2.952 19 120 34
3.806 18 117 23
2.871 27 119 95
3.352 16 115 41
3.305 27 113 28
2.952 26 108 68
3.547 24 116 54
3.691 30 135 77
3.160 21 108 58
2.194 20 110 73
3.323 30 124 94
3.936 29 130 98
2.922 25 118 99
2.716 23 110 91
3.370 25 117 95
3.606 23 123 72
2.642 30 116 65
2.452 21 109 53
2.655 24 110 81
3.714 32 126 41
1.806 18 99 84
3.516 23 121 84
3.039 20 115 35
2.966 23 127 70
2.482 18 99 15
2.700 18 108 47
3.920 29 129 98
2.834 20 103 77
3.222 23 122 72
3.084 26 118 29
4.000 28 135 80
3.511 34 139 88
3.323 20 128 80
3.072 20 120 46
2.079 26 114 89
3.875 32 133 91
3.208 25 123 95
2.920 27 111 83
3.345 27 122 92
3.956 29 136 99
3.808 19 140 41
2.506 21 109 68
3.886 24 133 98
2.183 27 98 59
3.429 25 134 89
3.024 18 124 89
3.750 29 128 92
3.833 24 149 97
3.113 27 121 43
2.875 21 117 52
2.747 19 110 82
2.311 18 104 61
1.841 25 95 72
1.583 18 96 33
2.879 20 117 97
3.591 32 130 97
2.914 24 121 92
3.716 35 125 99
2.800 25 112 61
3.621 28 136 72
3.792 28 129 99
2.867 25 106 76
3.419 22 108 66
3.600 30 138 70
2.394 20 106 44
2.286 20 111 33
1.486 31 101 77
3.885 20 113 57
3.800 29 131 96
3.914 28 140 97
1.860 16 111 65
2.948 28 110 85

1.) Plot the residuals ei against the fitted values ˆyi (in R). What departures from the regression model assumptions can be studied from this plot? What are your findings? (Note:If you are not sure about the validity of any of the assumptions, perform a formal test to verify your answer.)

2.) Prepare a normal probability plot (QQ plot) of the residuals. What assumption can be tested from this plot and what do you conclude? (Note:You can also use the formal test to reinforce your conclusion).

3.) Information is given for each student on two variables not included in the model, namely,intelligence test score (ITS-x2) and high school class rank percentile (RP-x3).Plot the residuals you obtained in part (b) against x2 and x3 on separate graphs to as certain whether the model can be improved by including either of these variables. What do you conclude? (Hint:The residuals represent any variability that was not able to be explained by x1. Therefore, if you see any pattern between the residuals and any other predictor omitted from the model, there is an indication that the predictor will be useful to be added in the model.)

a.) A neutron can cause ²³⁵U to fission, producing two daughter nuclei (tin and molybdenum) and three more neutrons. These three neutrons can then, in turn, cause three more ²³⁵U nuclei to split. One typical reaction is summarized as follows:

n + ²³⁵U ® ¹³¹Sn + ¹⁰²Mo + 3 ¹n

Find the energy released in this process (in MeV), given that M(²³⁵U)=235.0439 u; M(¹³¹Sn)=130.9169 u; M(¹⁰²Mo)=101.9103 u.

b.)Lise Meitner’s work in 1938 predicted that the fission of ²³⁵U would produce 200 MeV of energy per fission event. How did she do? Find a %-error.

c.)¹³¹Sn is radioactive, and typical undergoes three successive b^– decays. What is the final product?

d.)How many nuclei are in 1 kg of ²³⁵U? This is, incidentally, how many fission events occur if 1 kg of ²³⁵U were to fission.

e.)In each “generation” of a chain reaction of ²³⁵U, the number of events is three times the number in the previous generation. Hence events go as 1® 3® 9® 27® 81® 243 etc. If n tells you which generation, find the limit of the ratio of (events in n^th generation)/(total # of events) as n ® large. (You don’t need to use calculus, just use your calculator and notice the pattern. The series starts 1, 3/4, 9/13, etc.)

f.)Given these results, estimate the number n of chain reaction “generations” that would occur if 1 kg of ²³⁵U were to fission.

g.)If each “generation” lasts on the order of 10^–7 seconds, estimate the time for the entire fission chain reaction to occur.