Consider the following information on Huntington Power Co.

Debt: 4,000, 7% semiannual coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.

Preferred Stock: 10,000 outstanding with par value of $100 and a market value of 105 and $10 annual dividend.

Common Stock: 84,000 shares outstanding, selling for $56 per share, the beta is 2.08

The market risk premium is 5.5%, the risk free rate is 3.5% and Huntington’s tax rate is 32%.

Huntington Power Co. is evaluating two mutually exclusive project that is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and decided to apply an adjustment factor of +2.1% to the cost of capital for both projects.

Project A is a five-year project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls into the five-year MACRS class. The project is estimated to generate $2,050,000 in annual sales, with costs of $950,000. The project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of five years when the project is terminated.

Project B requires an initial fixed asset investment of $1.0 million. The marketing department predicts that sales related to the project will be $920,000 per year for the next five years, after which the market will cease to exist. The machine will be depreciated down to zero over four-year using the straight-line method (depreciable life 4 years while economic life 5 years). Cost of goods sold and operating expenses related to the project are predicted to be 25 percent of sales. The project will also require an addition to net working capital of $150,000 immediately. The asset is expected to have a market value of $120,000 at the end of five years when the project is terminated.

Use the following rates for 5-year MACRS: 20%, 32%, 19.2%, 11.52%, 11.52%, and 5.76%

1. Calculate NPV, IRR and PI for project B

Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes. State of Economy Probability T-Bills Alta Inds. Repo Men American Foam Market Port. Recession 0.1 8.00% -22.0% 28.0% 10.0% -13.0% Below Average 0.2 8.00% -2.0% 14.7% -10.0% 1.0% Average 0.4 8.00% 20.0% 0.0% 7.0% 15.0% Above Average 0.2 8.00% 35.0% -10.0% 45.0% 29.0% Boom 0.1 8.00% 50.0% -20.0% 30.0% 43.0% Barney Smith Investment Advisors recently issued estimates for the state of the economy and the rate of return on each state of the economy. Alta Industries, Inc. is an electronics firm; Repo Men Inc. collects past due debts; and American Foam manufactures mattresses and various other foam products. Barney Smith also maintains an "index fund" which owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund and thus obtain average stock market results. Given the situation as described, answer the following questions. a. Calculate the expected rate of return on each alternative. b. Calculate the standard deviation of returns on each alternative. c. Calculate the coefficient of variation on each alternative. d. Calculate the beta on each alternative. e. Do the SD, CV, and beta produce the same risk ranking? Why or why not? f. Suppose you create a two-stock portfolio by investing $50,000 in Alta Industries and $50,000 in Repo Men. Calculate the expected return, standard deviation, coefficient of variation, and beta for this portfolio. How does the risk of this two-stock portfolio compare with the risk of the individual stocks if they were held in isolation? Please show all calculations and formulas used to derive the answers.

Answer the following break even problems. In addition to the answers (rounded to 0 decimal places), show the spreadsheets you created to solve them (like you do for homeworks in lab). Next to any cells with equations, put the equation in text. For example, if I was doing a spreadsheet to sum the number of fish my son and I caught, it would look like:

Q1 (5 points)

Stew’s Plastics produces a variety of CD cases. The best-selling product is the CD-50. Several products are produced on the same manufacturing line, so there is a setup cost each time a changeover is made for a new product. The setup cost for the CD-50 is $4350. In addition, it costs $2.17 for each unit (CD Case) produced, and for each 120 CD Cases they have to put them in a box that costs $2.58. If there is less than 120 CD Cases they will put them in a box (in other words, if they had 122 CD Cases, they would do 2 boxes, one with 120 CD Cases and one with 2 CD Cases)

What is the break-even point (in terms of number of CD cases) if they sell them for $7.25 each?

Q2 (5 points)

Jerry, the manager of a small printing company, needs to replace a worn out copy machine. He is considering two machines; each has a monthly lease cost and a cost per page that is copied:

• Machine 1 has a $368 monthly lease with a 2.9 cents per page cost up to 300 pages, and then 1.9 cents per page after the 1^st 300 pages.
• Machine 2 has a $533 monthly lease with a 1.7 cents per page cost up to 300 pages, and then 1.0 cents per page after the 1^st 300 pages.

Jerry knows the break-even point is more than 300 pages for each machine. Determine the break-even point (per month) in terms of the number of copies for each machine if Jerry charges customers 5.5 cents per copy. Based on this, which machine do you recommend?

COMPLAINT: "My blood sugars have not been very good lately. I’m doing everything I am supposed to be doing."

HISTORY: A 24-year-old male patient comes to your primary care clinic to establish care. He has type 1 diabetes mellitus diagnosed at age 11. He has not seen a provider in about 9 months. Currently, he is taking NPH insulin 30 units bid (8 a.m. and 6 p.m. with 10 units Humalog before each meal. He does not use tobacco products but does drink alcohol on the weekends. He reports checking blood glucose (BG) levels three to four times daily but did not bring his glucose log or meter. He reports his fasting blood sugar runs 150 to 190 and prandial glucose readings are 140-250. He reports hypoglycemic episodes one to two times week. He exercises intermittently but is not on a regular schedule. He does not eat on a regular schedule every day although he says he knows that he should. He works at a light-activity job 8 hours daily. His height is 5’10" and he weighs 200 pounds. His blood pressure is 128/78 mm Hg and is pulse is 76 and regular. A random fingerstick glucose is 240 and point of care A1c is 9.8. Fasting chemistry and lipid panels, thyroxine (T4) and thyroid-stimulating hormone (TSH), and random urine for microalbumin are ordered.

ASSESSMENT:

1. Fasting BG: 203

2. Lipid profile: high-density lipoprotein 55; low-density lipoprotein 103; triglycerides 180; total cholesterol 209

3. Thyroid within normal limits

4. Creatinine 1.0; albumin 5.0

5. Microalbumin 17

Your patient is uncontrolled type 1 diabetes mellitus and borderline hyperlipidemia, with normal blood pressure and body weight.

1. How would you treat this patient?

2. What would initial instruction include?

1. Circle:

Implement a Java class with the name Circle. It should be in the package edu.gcccd.csis.

The class has two private instance variables: radius (of the type double) and color (of the type String).

The class also has a private static variable: numOfCircles (of the type long) which at all times will keep track of the number of Circle objects that were instantiated.

Construction:

A constructor that constructs a circle with the given color and sets the radius to a default value of 1.0.

A constructor that constructs a circle with the given, radius and color.

Once constructed, the value of the radius must be immutable (cannot be allowed to be modified)

Behaviors:

Accessor and Mutator aka Getter and Setter for the color attribute

Accessor for the radius.

getArea() and getCircumference() methods, hat return the area and circumference of this Circle in double.

Hint: use Math.PI (https://docs.oracle.com/javase/8/docs/api/java/lang/Math.html#PI (Links to an external site.))

2. Rectangle:

Implement a Java class with the name Rectangle. It should be in the package edu.gcccd.csis.

The class has two private instance variables: width and height (of the type double)

The class also has a private static variable: numOfRectangles (of the type long) which at all times will keep track of the number of Rectangle objects that were instantiated.

Construction:

A constructor that constructs a Rectangle with the given width and height.

A default constructor.

Behaviors:

Accessor and Mutator aka Getter and Setter for both member variables.

getArea() and getCircumference() methods, that return the area and circumference of this Rectangle in double.

a boolean method isSquare(), that returns true is this Rectangle is a square.

Hint: read the first 10 pages of Chapter 5 in your text.

3. Container

Implement a Java class with the name Container. It should be in the package edu.gcccd.csis.

The class has two private instance variables: rectangle of type Rectangle and circle of type Circle.

Construction:

No explicit constructors.

Behaviors:

Accessor and Mutator aka Getter and Setter for both member variables.

an integer method size(), that returns 0, if all member variables are null, 1 either of the two member variables contains a value other than null, and 2, if both, the rectangle and circle contain values other than null.

import java.awt.*;
import javax.swing.JButton;
import javax.swing.JFrame;

public class GridBagLayoutDemo {
final static boolean shouldFill = true;
final static boolean shouldWeightX = true;
final static boolean RIGHT_TO_LEFT = false;

public static void addComponentsToPane(Container pane) {
if (RIGHT_TO_LEFT) {
pane.setComponentOrientation(ComponentOrientation.RIGHT_TO_LEFT);
}

JButton button;
pane.setLayout(new GridBagLayout());
GridBagConstraints c = new GridBagConstraints();
if (shouldFill) {
//natural height, maximum width
c.fill = GridBagConstraints.HORIZONTAL;
}

button = new JButton("Button 1");
if (shouldWeightX) {
c.weightx = 0.5;
}
c.fill = GridBagConstraints.HORIZONTAL;
c.gridx = 0;
c.gridy = 0;
pane.add(button, c);

button = new JButton("Button 2");
c.fill = GridBagConstraints.HORIZONTAL;
c.weightx = 0.5;
c.gridx = 1;
c.gridy = 0;
pane.add(button, c);

button = new JButton("Button 3");
c.fill = GridBagConstraints.HORIZONTAL;
c.weightx = 0.5;
c.gridx = 2;
c.gridy = 0;
pane.add(button, c);

button = new JButton("Long-Named Button 4");
c.fill = GridBagConstraints.HORIZONTAL;
c.ipady = 40; //make this component tall
c.weightx = 0.0;
c.gridwidth = 3;
c.gridx = 0;
c.gridy = 1;
pane.add(button, c);

button = new JButton("5");
c.fill = GridBagConstraints.HORIZONTAL;
c.ipady = 0; //reset to default
c.weighty = 1.0; //request any extra vertical space
c.anchor = GridBagConstraints.PAGE_END; //bottom of space
c.insets = new Insets(10,0,0,0); //top padding
c.gridx = 1; //aligned with button 2
c.gridwidth = 2; //2 columns wide
c.gridy = 2; //third row
pane.add(button, c);
}

private static void createAndShowGUI() {
//Create and set up the window.
JFrame frame = new JFrame("GridBagLayoutDemo");
frame.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);

//Set up the content pane.
addComponentsToPane(frame.getContentPane());

//Display the window.
frame.pack();
frame.setVisible(true);
}

public static void main(String[] args) {
//Schedule a job for the event-dispatching thread:
//creating and showing this application's GUI.
javax.swing.SwingUtilities.invokeLater(new Runnable() {
public void run() {
createAndShowGUI();
}
});
}
}

I need someone to go through this program and right more comments that explain a lot more Please. from top to bottom Thanks

(Bonus question) Are coffee drinkers more likely to suffer from high blood pressure? For a random sample of 50 coffee drinkers, 30 had high blood pressure. In a random sample of 50 non-coffee drinkers, 25 had high blood pressure. Let p1, p2 denote the population proportion of high blood pressure among coffee drinkers and non-coffee drinkers respectively.

1. (a) Construct a 95% CI for the difference between these two proportions p1 − p2. (3pts).

2. (b) Someone proposes that coffee drinkers have higher proportion of high blood pressure than non-coffee drinkers. Test the claim at 0.05 significance level. Give the H0,Ha, test statistics, p-value and conclusion. (3pts)

Table A: Standard Normal Distribution. Table entry is P[Z < z]

z 0.00 -3.4 0.0003 -3.3 0.0005 -3.2 0.0007 -3.1 0.0010 -3.0 0.0013 -2.9 0.0019 -2.8 0.0026 -2.7 0.0035 -2.6 0.0047 -2.5 0.0062 -2.4 0.0082 -2.3 0.0107 -2.2 0.0139 -2.1 0.0179 -2.0 0.0228 -1.9 0.0287 -1.8 0.0359 -1.7 0.0446 -1.6 0.0548 -1.5 0.0668 -1.4 0.0808 -1.3 0.0968 -1.2 0.1151 -1.1 0.1357 -1.0 0.1587 -0.9 0.1841 -0.8 0.2119 -0.7 0.2420 -0.6 0.2743 -0.5 0.3085 -0.4 0.3446 -0.3 0.3821 -0.2 0.4207 -0.1 0.4602 -0.0 0.5000

0. 0.0 0.5000

1. 0.1 0.5398

2. 0.2 0.5793

3. 0.3 0.6179

4. 0.4 0.6554

5. 0.5 0.6915

6. 0.6 0.7257

7. 0.7 0.7580

8. 0.8 0.7881

9. 0.9 0.8159

0. 1.0 0.8413

1. 1.1 0.8643

2. 1.2 0.8849

3. 1.3 0.9032

4. 1.4 0.9192

5. 1.5 0.9332

6. 1.6 0.9452

7. 1.7 0.9554

8. 1.8 0.9641

9. 1.9 0.9713

0. 2.0 0.9772

1. 2.1 0.9821

2. 2.2 0.9861

3. 2.3 0.9893

4. 2.4 0.9918

5. 2.5 0.9938

6. 2.6 0.9953

7. 2.7 0.9965

8. 2.8 0.9974

9. 2.9 0.9981

0. 3.0 0.9987

1. 3.1 0.9990

2. 3.2 0.9993

3. 3.3 0.9995

4. 3.4 0.9997

0.01 0.02 0.03 0.0003 0.0003 0.0003 0.0005 0.0005 0.0004 0.0007 0.0006 0.0006 0.0009 0.0009 0.0009 0.0013 0.0013 0.0012 0.0018 0.0018 0.0017 0.0025 0.0024 0.0023 0.0034 0.0033 0.0032 0.0045 0.0044 0.0043 0.0060 0.0059 0.0057 0.0080 0.0078 0.0075 0.0104 0.0102 0.0099 0.0136 0.0132 0.0129 0.0174 0.0170 0.0166 0.0222 0.0217 0.0212 0.0281 0.0274 0.0268 0.0351 0.0344 0.0336 0.0436 0.0427 0.0418 0.0537 0.0526 0.0516 0.0655 0.0643 0.0630 0.0793 0.0778 0.0764 0.0951 0.0934 0.0918 0.1131 0.1112 0.1093 0.1335 0.1314 0.1292 0.1562 0.1539 0.1515 0.1814 0.1788 0.1762 0.2090 0.2061 0.2033 0.2389 0.2358 0.2327 0.2709 0.2676 0.2643 0.3050 0.3015 0.2981 0.3409 0.3372 0.3336 0.3783 0.3745 0.3707 0.4168 0.4129 0.4090 0.4562 0.4522 0.4483 0.4960 0.4920 0.4880 0.5040 0.5080 0.5120 0.5438 0.5478 0.5517 0.5832 0.5871 0.5910 0.6217 0.6255 0.6293 0.6591 0.6628 0.6664 0.6950 0.6985 0.7019 0.7291 0.7324 0.7357 0.7611 0.7642 0.7673 0.7910 0.7939 0.7967 0.8186 0.8212 0.8238 0.8438 0.8461 0.8485 0.8665 0.8686 0.8708 0.8869 0.8888 0.8907 0.9049 0.9066 0.9082 0.9207 0.9222 0.9236 0.9345 0.9357 0.9370 0.9463 0.9474 0.9484 0.9564 0.9573 0.9582 0.9649 0.9656 0.9664 0.9719 0.9726 0.9732 0.9778 0.9783 0.9788 0.9826 0.9830 0.9834 0.9864 0.9868 0.9871 0.9896 0.9898 0.9901 0.9920 0.9922 0.9925 0.9940 0.9941 0.9943 0.9955 0.9956 0.9957 0.9966 0.9967 0.9968 0.9975 0.9976 0.9977 0.9982 0.9982 0.9983 0.9987 0.9987 0.9988 0.9991 0.9991 0.9991 0.9993 0.9994 0.9994 0.9995 0.9995 0.9996 0.9997 0.9997 0.9997

0.04 0.05 0.0003 0.0003 0.0004 0.0004 0.0006 0.0006 0.0008 0.0008 0.0012 0.0011 0.0016 0.0016 0.0023 0.0022 0.0031 0.0030 0.0041 0.0040 0.0055 0.0054 0.0073 0.0071 0.0096 0.0094 0.0125 0.0122 0.0162 0.0158 0.0207 0.0202 0.0262 0.0256 0.0329 0.0322 0.0409 0.0401 0.0505 0.0495 0.0618 0.0606 0.0749 0.0735 0.0901 0.0885 0.1075 0.1056 0.1271 0.1251 0.1492 0.1469 0.1736 0.1711 0.2005 0.1977 0.2296 0.2266 0.2611 0.2578 0.2946 0.2912 0.3300 0.3264 0.3669 0.3632 0.4052 0.4013 0.4443 0.4404 0.4840 0.4801 0.5160 0.5199 0.5557 0.5596 0.5948 0.5987 0.6331 0.6368 0.6700 0.6736 0.7054 0.7088 0.7389 0.7422 0.7704 0.7734 0.7995 0.8023 0.8264 0.8289 0.8508 0.8531 0.8729 0.8749 0.8925 0.8944 0.9099 0.9115 0.9251 0.9265 0.9382 0.9394 0.9495 0.9505 0.9591 0.9599 0.9671 0.9678 0.9738 0.9744 0.9793 0.9798 0.9838 0.9842 0.9875 0.9878 0.9904 0.9906 0.9927 0.9929 0.9945 0.9946 0.9959 0.9960 0.9969 0.9970 0.9977 0.9978 0.9984 0.9984 0.9988 0.9989 0.9992 0.9992 0.9994 0.9994 0.9996 0.9996 0.9997 0.9997

0.06 0.07 0.0003 0.0003 0.0004 0.0004 0.0006 0.0005 0.0008 0.0008 0.0011 0.0011 0.0015 0.0015 0.0021 0.0021 0.0029 0.0028 0.0039 0.0038 0.0052 0.0051 0.0069 0.0068 0.0091 0.0089 0.0119 0.0116 0.0154 0.0150 0.0197 0.0192 0.0250 0.0244 0.0314 0.0307 0.0392 0.0384 0.0485 0.0475 0.0594 0.0582 0.0721 0.0708 0.0869 0.0853 0.1038 0.1020 0.1230 0.1210 0.1446 0.1423 0.1685 0.1660 0.1949 0.1922 0.2236 0.2206 0.2546 0.2514 0.2877 0.2843 0.3228 0.3192 0.3594 0.3557 0.3974 0.3936 0.4364 0.4325 0.4761 0.4721 0.5239 0.5279 0.5636 0.5675 0.6026 0.6064 0.6406 0.6443 0.6772 0.6808 0.7123 0.7157 0.7454 0.7486 0.7764 0.7794 0.8051 0.8078 0.8315 0.8340 0.8554 0.8577 0.8770 0.8790 0.8962 0.8980 0.9131 0.9147 0.9279 0.9292 0.9406 0.9418 0.9515 0.9525 0.9608 0.9616 0.9686 0.9693 0.9750 0.9756 0.9803 0.9808 0.9846 0.9850 0.9881 0.9884 0.9909 0.9911 0.9931 0.9932 0.9948 0.9949 0.9961 0.9962 0.9971 0.9972 0.9979 0.9979 0.9985 0.9985 0.9989 0.9989 0.9992 0.9992 0.9994 0.9995 0.9996 0.9996 0.9997 0.9997

0.08 0.09 0.0003 0.0002 0.0004 0.0003 0.0005 0.0005 0.0007 0.0007 0.0010 0.0010 0.0014 0.0014 0.0020 0.0019 0.0027 0.0026 0.0037 0.0036 0.0049 0.0048 0.0066 0.0064 0.0087 0.0084 0.0113 0.0110 0.0146 0.0143 0.0188 0.0183 0.0239 0.0233 0.0301 0.0294 0.0375 0.0367 0.0465 0.0455 0.0571 0.0559 0.0694 0.0681 0.0838 0.0823 0.1003 0.0985 0.1190 0.1170 0.1401 0.1379 0.1635 0.1611 0.1894 0.1867 0.2177 0.2148 0.2483 0.2451 0.2810 0.2776 0.3156 0.3121 0.3520 0.3483 0.3897 0.3859 0.4286 0.4247 0.4681 0.4641 0.5319 0.5359 0.5714 0.5753 0.6103 0.6141 0.6480 0.6517 0.6844 0.6879 0.7190 0.7224 0.7517 0.7549 0.7823 0.7852 0.8106 0.8133 0.8365 0.8389 0.8599 0.8621 0.8810 0.8830 0.8997 0.9015 0.9162 0.9177 0.9306 0.9319 0.9429 0.9441 0.9535 0.9545 0.9625 0.9633 0.9699 0.9706 0.9761 0.9767 0.9812 0.9817 0.9854 0.9857 0.9887 0.9890 0.9913 0.9916 0.9934 0.9936 0.9951 0.9952 0.9963 0.9964 0.9973 0.9974 0.9980 0.9981 0.9986 0.9986 0.9990 0.9990 0.9993 0.9993 0.9995 0.9995 0.9996 0.9997 0.9997 0.9998

6

Table C: t distribution critical values Table entries are t∗ values for confidence level C 1-sided and 2-sided P-values are also shown

Confidence Level C

7

df 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 35 40 45 50 z∗

1-sided P 2-sided P

50% 60% 80% 1.0000 1.3764 3.0777 0.8165 1.0607 1.8856 0.7649 0.9785 1.6377 0.7407 0.9410 1.5332 0.7267 0.9195 1.4759 0.7176 0.9057 1.4398 0.7111 0.8960 1.4149 0.7064 0.8889 1.3968 0.7027 0.8834 1.3830 0.6998 0.8791 1.3722 0.6974 0.8755 1.3634 0.6955 0.8726 1.3562 0.6938 0.8702 1.3502 0.6924 0.8681 1.3450 0.6912 0.8662 1.3406 0.6901 0.8647 1.3368 0.6892 0.8633 1.3334 0.6884 0.8620 1.3304 0.6876 0.8610 1.3277 0.6870 0.8600 1.3253 0.6864 0.8591 1.3232 0.6858 0.8583 1.3212 0.6853 0.8575 1.3195 0.6848 0.8569 1.3178 0.6844 0.8562 1.3163 0.6840 0.8557 1.3150 0.6837 0.8551 1.3137 0.6834 0.8546 1.3125 0.6830 0.8542 1.3114 0.6828 0.8538 1.3104 0.6816 0.8520 1.3062 0.6807 0.8507 1.3031 0.6800 0.8497 1.3006 0.6794 0.8489 1.2987

0.674 0.841 1.282 0.25 0.20 0.10 0.50 0.40 0.20

90% 95% 6.3138 12.706 2.9200 4.3027 2.3534 3.1824 2.1318 2.7764 2.0150 2.5706 1.9432 2.4469 1.8946 2.3646 1.8595 2.3060 1.8331 2.2622 1.8125 2.2281 1.7959 2.2010 1.7823 2.1788 1.7709 2.1604 1.7613 2.1448 1.7531 2.1314 1.7459 2.1199 1.7396 2.1098 1.7341 2.1009 1.7291 2.0930 1.7247 2.0860 1.7207 2.0796 1.7171 2.0739 1.7139 2.0687 1.7109 2.0639 1.7081 2.0595 1.7056 2.0555 1.7033 2.0518 1.7011 2.0484 1.6991 2.0452 1.6973 2.0423 1.6896 2.0301 1.6839 2.0211 1.6794 2.0141 1.6759 2.0086

1.645 1.96 0.05 0.025 0.10 0.05

96% 98% 99% 99.8% 15.895 31.821 63.657 318.31 4.8487 6.9646 9.9248 22.327 3.4819 4.5407 5.8409 10.215 2.9985 3.7469 4.6041 7.1732 2.7565 3.3649 4.0321 5.8934 2.6122 3.1427 3.7074 5.2076 2.5168 2.9980 3.4995 4.7853 2.4490 2.8965 3.3554 4.5008 2.3984 2.8214 3.2498 4.2968 2.3593 2.7638 3.1693 4.1437 2.3281 2.7181 3.1058 4.0247 2.3027 2.6810 3.0545 3.9296 2.2816 2.6503 3.0123 3.8520 2.2638 2.6245 2.9768 3.7874 2.2485 2.6025 2.9467 3.7328 2.2354 2.5835 2.9208 3.6862 2.2238 2.5669 2.8982 3.6458 2.2137 2.5524 2.8784 3.6105 2.2047 2.5395 2.8609 3.5794 2.1967 2.5280 2.8453 3.5518 2.1894 2.5176 2.8314 3.5272 2.1829 2.5083 2.8188 3.5050 2.1770 2.4999 2.8073 3.4850 2.1715 2.4922 2.7969 3.4668 2.1666 2.4851 2.7874 3.4502 2.1620 2.4786 2.7787 3.4350 2.1578 2.4727 2.7707 3.4210 2.1539 2.4671 2.7633 3.4082 2.1503 2.4620 2.7564 3.3962 2.1470 2.4573 2.7500 3.3852 2.1332 2.4377 2.7238 3.3400 2.1229 2.4233 2.7045 3.3069 2.1150 2.4121 2.6896 3.2815 2.1087 2.4033 2.6778 3.2614

2.054 2.326 2.576 3.091 0.02 0.01 0.005 0.001 0.04 0.02 0.01 0.002

99.9% 636.62 31.599 12.924 8.6103 6.8688 5.9588 5.4079 5.0413 4.7809 4.5869 4.4370 4.3178 4.2208 4.1405 4.0728 4.0150 3.9651 3.9216 3.8834 3.8495 3.8193 3.7921 3.7676 3.7454 3.7251 3.7066 3.6896 3.6739 3.6594 3.6460 3.5911 3.5510 3.5203 3.4960

3.291 0.0005 0.001

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June, the plant produced 3,000 pools and incurred the following costs:

1. Purchased 15,800 pounds of materials at a cost of $2.45 per pound.

2. Used 10,600 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 2,100 direct labor-hours at a cost of $6.30 per hour.

4. Incurred variable manufacturing overhead cost totaling $3,000 for the month. A total of 1,200 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June the plant produced 3,000 pools and incurred the following costs:

1. Purchased 23,000 pounds of materials at a cost of $3.20 per pound.

2. Used 8,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 2,000 direct labor-hours at a cost of $5.70 per hour.

4. Incurred variable manufacturing overhead cost totaling $1,710 for the month. A total of 900 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.