As the cost accounting manager at Cambria Chemicals (CC), you are responsible for compiling and reporting various performance measures to the senior managers. The company instituted many efficiency improvement programs recently, and the CFO has asked you to measure and report partial productivity for both labor and materials. Data for the last two years follow.
| Year 2 | Year 1 | |
| Gallons input(Thousands) | 9,000 | 8,000 |
| Labor-hours (thousands) | 10,000 | 7,600 |
| Gallons of output (thousands) | 10,800 | 8,800 |
From the accounting records, you also gather the information for the two years.
| Year 2 | Year 1 | |
| Cost of inputs(per gallon) | $85 | $90 |
| Wage rate (per hour) | $22 | $19 |
| Total Manufacturing overhead | $1,280,000 | $1,160,000 |
| Selling price of output (per gallon) | $360 | $370 |
Required:
a. Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhead). (round your answers to 3 decimal places)
In: Accounting
In: Accounting
Calculate the weighted average cost of capital for the following firm: it has $600000 in debt, $400000 in common stock and $200000 in preferred stock. It has a 4% cost of debt, 14% cost of common stock, 12% cost of preferred stock and a 34% tax rate.
In: Finance
The following is total monthly budgeted cost and activity
information for the four activity centers in the billing department
of Oregon Power Company:
| Activity Center |
Variable |
Fixed |
Cost Driver |
| Statement inquiry |
$77,385 |
$150,000 |
3,300 labor hours |
| Correspondence |
$9,585 |
$26,000 |
2,700 letters |
| Account billing |
$171,500 |
$79,000 |
2,450,000 lines |
| Payment verification |
$12,980 |
$78,000 |
22,000 accounts |
In September, actual total costs and activity were as follows:
| Activity Center |
Total Costs |
Driver Amount |
| Statement inquiry |
$225,403 |
3,220 labor hours |
| Correspondence |
$35,231 |
2,650 letters |
| Account billing |
$241,504 |
2,330,000 lines |
| Payment verification |
$90,939 |
22,050 accounts |
Required
Compute the flexible-budget variances for the following two
activity cost items (round unit costs to two decimal places and
enter favorable variances as positive numbers and unfavorable
variances as negative numbers):
Correspondence
Statement inquiry
In: Accounting
What is veterans affairs doing to address the rising cost of health care to veterans and to the US gov’t for veterans?
COURSE: Information Technology for the Health Professions
In: Nursing
A store sells a brand of olive oil of 400 bottles per month.
The cost of each bottle is $4.85 , and the cost of placing an order is $10.00.
Assuming the holding costs are based on a 20% annual interest rate, and stock-outs are not allowed,
a) What is the optimal lot size they should order and what is the time between orders of this product?
b) If lead time is 2 weeks to get the product to the store, what is the reorder point based on the on-hand inventory?
c) If it sells for $5.99, what is the annual profit (excluding overhead and labor costs) from this item?
In: Accounting
A. Alex purchased a CNC machine on 1st October 2019 at a cost of $110,000 (including GST). This machinery is estimated to have a useful life of seven years.
B. Alex purchased a Holden car on 1 May, 2019 at a cost of $63,000, estimated to have a useful life of five years.
Required: With reference to relevant legislation and case law, discuss and calculate what amount is allowed as a deduction for the decline in value of the machinery and the Holden car discussed above, using both Prime cost and Diminishing value methods.
In: Accounting
Scenario 10.5:
A firm produces garden hoses in California and in Ohio. The marginal cost of producing garden hoses in the two states and the marginal revenue from producing garden hoses are given in the following table:
California Ohio
Qc MCc Qo MCo Qc + o MR
1 2 1 3 1 24
2 3 2 4 2 20
3 5 3 6 3 16
4 9 4 8 4 12
5 16 5 12 5 8
6 24 6 17 6 4
21) Refer to Scenario 10.5. From the perspective of the firm, what is the marginal cost of the 5th garden hose?
A) 4
B) 5
C) 16
D) 12
why the answer is B
In: Economics
Calculate the weighted average cost of capital for a company given the following:
Dividend expected in year one: $1.62/share
Expected dividend growth rate in perpetuity: 3.5%/year
Current market price of company’s common stock: $13.00/share
Company’s debt is in the form of 7-year, 11% (annual) bonds with a face value of $1,000 per bond. Current market value of bonds is $1,058.81/bond
Number of common stocks outstanding: 21,000,000
Market value of debt and equity combined: $420 million
The company’s marginal tax rate: 35%
Calculate the weighted average cost of capital for a company given the following:
Risk-free rate: 3.20%
The market risk premium: 12.40%
Common stock’s beta: 1.35
Company’s debt is in the form of 6-year, 8.6% bonds (semi-annual), face value of $1,000, selling for $946.52.
The company’s finances its needed capital with 30% debt.
The company’s marginal tax rate: 30%
In: Finance
Sensitivity Analysis
Consider the project where the initial cost is $200,000, and the
project has a 5-year life. There is no salvage. Depreciation is
straight-line (Depreciation = 200,000/5 = 40,000)
Unit Sales = 6000, Price per unit = $80 (Sales = 6,000 x 80)
Variable cost per unit = $60 (Variable Costs = 6,000 x 60)
The required return is 12%, and the tax rate is 21% What are the
cash flow each year, NPV and IRR in each case, if we changed fixed
costs only?
In: Finance