Donovan & Parents produces soccer shorts and jerseys for
youth leagues. Most of the production is done by machine. Data on
operations and costs for March follow.
| Jerseys | Shorts | Total | |||||||
| Units produced | 10,900 | 5,400 | 16,300 | ||||||
| Machine-hours used | 1,010 | 770 | 1,780 | ||||||
| Direct labor-hours | 200 | 140 | 340 | ||||||
| Direct materials costs | $ | 12,500 | $ | 7,500 | $ | 20,000 | |||
| Direct labor costs | $ | 4,000 | $ | 2,800 | $ | 6,800 | |||
| Manufacturing overhead costs | $ | 21,108 | |||||||
Management asks the firm’s cost accountant to compute product
costs. The accountant first assigns overhead costs to two pools:
overhead related to direct materials and overhead related to
machine-hours. The analysis of overhead accounts by the cost
accountant follows.
| Account | Amount | Related to: | ||
| Utilities | $ | 4,090 | Machine-hours | |
| Supplies | 2,860 | Materials | ||
| Machine depreciation and maintenance | 7,738 | Machine-hours | ||
| Purchasing and storing materials | 2,940 | Materials | ||
| Miscellaneous | 3,480 | Machine-hours | ||
Required:
a. Compute the predetermined overhead rates assuming that Donovan uses machine-hours to allocate machine-related overhead costs and materials costs to allocate materials-related overhead costs. (Round "Machine-related overhead" rate to 2 decimal places and enter "Materials related overhead" rate as a whole percentage)
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b. Compute the total costs of production and the cost per unit for each of the two products for March. (Do not round intermediate calculations. Round your "Cost per unit" to 2 decimal places.)
| Jerseys | Shorts | |
| Total Cost | ||
| Cost per Unit |
In: Accounting
Apply the Concepts
A pediatric ward in a metropolitan hospital has the following information:
| Resources | Cost of Resources | Activities | Nursing hours | |||||
| Supervision | $80,000 | Supervising nurses | 2,000 | |||||
| Supplies and uniforms | 40,000 | Treating patients | 5,000 | |||||
| Salaries | 500,000 | Providing hygienic care | 4,000 | |||||
| Computer | 15,000 | Responding to requests | 6,000 | |||||
| Monitor | 30,000 | Monitoring patients | 3,000 | |||||
| Total | $665,000 | 20,000 | ||||||
Required:
| 1. | Fill in the following table that represents the work distribution matrix for the pediatric ward (if an amount is zero, enter "0"): | |||||||||||||||||||||
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| 2. | Select all resources where driver tracing is used to assign costs to activities: | |||||||||||||||||||||
| 3. | Calculate the cost of each activity: | |||||||||||||||||||||
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| 4. | Select all the activities that are secondary activities: | |||||||||||||||||||||
| 5. | Calculate the final cost of each activity below, assuming the cost of secondary activities is assigned to primary activities in proportion to the labor content of primary activities (if an amount is zero, enter "0"; round to the nearest dollar): | |||||||||||||||||||||
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In: Accounting
Suppose that Xtel currently is selling at $56 per share. You buy 500 shares using $20,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 6%.
a. What is the percentage increase in the net worth of your brokerage account if the price of Xtelimmediately changes to: (i) $58.80; (ii) $56; (iii) $53.20? What is the relationship between your percentage return and the percentage change in the price of Xtel? (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
b. If the maintenance margin is 25%, how low can Xtel’s price fall before you get a margin call? (Round your answer to 2 decimal places.)
c. How would your answer to (b) change if you had financed the initial purchase with only $14,000 of your own money? (Round your answer to 2 decimal places.)
d. What is the rate of return on your margined position (assuming again that you invest $20,000 of your own money) if Xtel is selling after 1 year at: (i) $58.80; (ii) $56; (iii) $53.20? What is the relationship between your percentage return and the percentage change in the price of Xtel? Assume that Xtel pays no dividends. (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)
e. Continue to assume that a year has passed. How low can Xtel’s price fall before you get a margin call?(Round your answer to 2 decimal places.)
In: Finance
Suppose that LMN stock currently is selling at $79 per share.
You buy 500 shares using $30,000 of your own money, borrowing the
remainder of the purchase price from your broker. The rate on the
margin loan is 5%.
a. What is the percentage increase in the net
worth of your brokerage account if the price of LMN
immediately changes to: (i) $87.20; (ii) $79; (iii)
$70.80? What is the relationship between your percentage return and
the percentage change in the price of LMN? (Leave no cells
blank - be certain to enter "0" wherever required. Negative values
should be indicated by a minus sign. Round your answers to 2
decimal places.)
b. If the maintenance margin is 25%, how low can
LMN's price fall before you get a margin call? (Round your
answer to 2 decimal places.)
c. How would your answer to (b) change if
you had financed the initial purchase with only $19,750 of your own
money? (Round your answer to 2 decimal
places.)
d. What is the rate of return on your margined
position (assuming again that you invest $30,000 of your own money)
if LMN is selling after 1 year at: (i) $87.20; (ii) $79;
(iii) $70.80? What is the relationship between your percentage
return and the percentage change in the price of LMN? Assume that
LMN pays no dividends. (Negative values should be indicated
by a minus sign. Round your answers to 2 decimal
places.)
e. Continue to assume that a year has passed. How
low can LMN's price fall before you get a margin call?
(Round your answer to 2 decimal places.)
In: Accounting
Presented below are the means, standard deviations, and scores on various interval-ratio variables that are assumed to be normally distributed. For each problem, either use the Z table to find what percentage of the area under the normal curve lies above or below a given score, or compare two scores as requested. Show your work and state your answers in sentence form.
In: Statistics and Probability
Previously, 5% of mothers smoked more than 21 cigarettes during their pregnancy. An obstetrician believes that the percentage of mothers who smoke 21 cigarettes or more is less than 5% today. She randomly selects 130 pregnant mothers and finds that 5 of them smoked 21 or more cigarettes during pregnancy. Test the researcher's statement at the α=0.05 level of significance. Identify the correct null and alternative hypotheses.
H0: p ()0.05
H1: p() 0.05
Use technology to find the P-value. P-value= (Round to three decimal places as needed.)
Is there sufficient evidence to support the obstetrician's statement? A.No, because the P-value is greater than α there is not sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we do not reject the null hypothesis. B.Yes, because the P-value is greater than α there is sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we do not reject the null hypothesis. C.No, because the P-value is less than α there is not sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we reject the null hypothesis. D. Yes, because the P-value is less than α there is sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we reject the null hypothesis.
In: Statistics and Probability
Previously, 5% of mothers smoked more than 21 cigarettes during their pregnancy. An obstetrician believes that the percentage of mothers who smoke 21 cigarettes or more is less than 5% today. She randomly selects 130 pregnant mothers and finds that 5 of them smoked 21 or more cigarettes during pregnancy. Test the researcher's statement at the α=0.05 level of significance. Identify the correct null and alternative hypotheses.
H0: p()0.05
H1: p()0.05
Use technology to find the P-value. P-value=() (Round to three decimal places as needed.)
Is there sufficient evidence to support the obstetrician's statement? A.No, because the P-value is greater than α there is not sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we do not reject the null hypothesis. B. Yes, because the P-value is greater than α there is sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we do not reject the null hypothesis. C. No, because the P-value is less than α there is not sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we reject the null hypothesis. D. Yes, because the P-value is less than α there is sufficient evidence to conclude that the percentage of mothers who smoke 21 or more cigarettes during pregnancy is less than 5%, meaning we reject the null hypothesis.
In: Statistics and Probability
Suppose that LMN stock currently is selling at $78 per share.
You buy 250 shares using $10,000 of your own money, borrowing the
remainder of the purchase price from your broker. The rate on the
margin loan is 5%.
a. What is the percentage increase in the net
worth of your brokerage account if the price of LMN
immediately changes to: (i) $84.24; (ii) $78; (iii)
$71.76? What is the relationship between your percentage return and
the percentage change in the price of LMN? (Leave no cells
blank - be certain to enter "0" wherever required. Negative values
should be indicated by a minus sign. Round your answers to 2
decimal places.)
b. If the maintenance margin is 25%, how low can
LMN's price fall before you get a margin call? (Round your
answer to 2 decimal places.)
c. How would your answer to (b) change if
you had financed the initial purchase with only $9,750 of your own
money? (Round your answer to 2 decimal
places.)
d. What is the rate of return on your margined
position (assuming again that you invest $10,000 of your own money)
if LMN is selling after 1 year at: (i) $84.24; (ii) $78;
(iii) $71.76? What is the relationship between your percentage
return and the percentage change in the price of LMN? Assume that
LMN pays no dividends. (Negative values should be indicated
by a minus sign. Round your answers to 2 decimal
places.)
e. Continue to assume that a year has passed. How
low can LMN's price fall before you get a margin call?
(Round your answer to 2 decimal places.)
In: Finance
Suppose that LMN stock currently is selling at $62 per share.
You buy 300 shares using $12,000 of your own money, borrowing the
remainder of the purchase price from your broker. The rate on the
margin loan is 9%.
a. What is the percentage increase in the net
worth of your brokerage account if the price of LMN
immediately changes to: (i) $66.65; (ii) $62; (iii)
$57.35? What is the relationship between your percentage return and
the percentage change in the price of LMN? (Leave no cells
blank - be certain to enter "0" wherever required. Negative values
should be indicated by a minus sign. Round your answers to 2
decimal places.)
b. If the maintenance margin is 25%, how low can
LMN's price fall before you get a margin call? (Round your
answer to 2 decimal places.)
c. How would your answer to (b) change if
you had financed the initial purchase with only $9,300 of your own
money? (Round your answer to 2 decimal
places.)
d. What is the rate of return on your margined
position (assuming again that you invest $12,000 of your own money)
if LMN is selling after 1 year at: (i) $66.65; (ii) $62;
(iii) $57.35? What is the relationship between your percentage
return and the percentage change in the price of LMN? Assume that
LMN pays no dividends. (Negative values should be indicated
by a minus sign. Round your answers to 2 decimal
places.)
e. Continue to assume that a year has passed. How
low can LMN's price fall before you get a margin call?
(Round your answer to 2 decimal places.)
In: Finance
An organization monitors many aspects of elementary and secondary education nationwide. Their 2000 numbers are often used as a baseline to assess changes. In 2000 48 % of students had not been absent from school even once during the previous month. In the 2004 survey, responses from 6827 randomly selected students showed that this figure had slipped to 47 %. Officials would note any change in the rate of student attendance. Answer the questions below.
(a) Write appropriate hypotheses.
Upper H 0 : The percentage of students in 2004 with perfect attendance the previous month ▼ is greater than 48%. is less than 48%. is different from 48%. is equal to 48%.
Upper H Subscript Upper A Baseline : The percentage of students in 2004 with perfect attendance the previous month ▼ is greater than 48%. is equal to 48%. is less than 48%. is different from 48%.
(b) Check the necessary assumptions.
The independence condition is ▼ satisfied. not satisfied. The randomization condition is ▼ not satisfied. satisfied. The 10% condition is ▼ satisfied. not satisfied. The success/failure condition is ▼ not satisfied. satisfied.
(c) Perform the test and find the P-value. P-value equals ________ (Round to three decimal places as needed.)
(d) State your conclusion. Assume a=0.05.
A. We fail to reject the null hypothesis. There is sufficient evidence to suggest that the percentage of students with perfect attendance in the previous month has changed.
B. We can reject the null hypothesis. There is sufficient evidence to suggest that the percentage of students with perfect attendance in the previous month has changed.
C. We fail to reject the null hypothesis. There is not sufficient evidence to suggest that the percentage of students with perfect attendance in the previous month has changed.
In: Statistics and Probability