Saudia Manufacturing Company established the following standard price and cost information:
            
Sales price   $   50   per unit
Variable manufacturing cost      32   per unit
Fixed manufacturing cost   $   100,000   total
Fixed selling and administrative cost   $   40,000   total

Saudia Company expected to produce and sell 25,000 units. Actual production and sales amounted to 26,500 units.

Required: Complete the following table
(a) Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost.
(b) Classify the variances as favorable (F) or unfavorable (U).

Monopoly Deadweight Loss and Elasticity The demand and cost information for a patented drug developed and sold by the monopolist BigPharma are given below: Demand: P = 80 – 6Q Total cost: TC = 2Q2 Marginal Cost: MC = 4Q, where Q is measured in millions of pills per year and P is measured in dollars per pill.

a. Calculate the monopoly profit-maximizing price and quantity and the monopoly deadweight loss triangle. Illustrate your answer, showing demand, marginal revenue, marginal cost, monopoly price and quantity, competitive price and quantity, and deadweight loss.

b. Calculate the elasticity of demand at the monopolist’s profit-maximizing price. Explain why it is that if demand is linear (and marginal cost is not zero), the monopolist will always price in the elastic portion of the demand curve.

4. Suppose a monopolist’s cost is given by C(Q) = 12 + Q2 and the industry demand for the product is estimated to be P = 24 – Q.

   a. Graph demand, marginal revenue and the marginal cost curve. What is the monopolist’s profit maximizing quantity and price?

   b. If this industry was made up of many firms that produced an identical product what would be the resulting equilibrium quantity and price?

   c. Is there deadweight loss in the case of a monopolist? If so, compute and label on the graph.

Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 104,400 units per year is:

The normal selling price is $22.00 per unit. The company’s capacity is 118,800 units per year. An order has been received from a mail-order house for 1,200 units at a special price of $19.00 per unit. This order would not affect regular sales or the company’s total fixed costs.

Required:

1. What is the financial advantage (disadvantage) of accepting the special order?

2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?

The cost of 55 gallons of ice cream has a standard deviation of 8 dollars with a mean of 29 dollars during the summer.

What is the probability that the sample mean would be greater than  27.1 dollars if a sample of 92 5-gallon pails is randomly selected? Round your answer to four decimal places.

An incomplete cost of goods manufactured schedule is presented below for Cepeda Manufacturing Company for the year ended December 2020:

Complete the cost of goods manufactured schedule for Cepeda Manufacturing Company.

Wardell Company purchased a minicomputer on January 1, 2016, at a cost of $43,000. The computer was depreciated using the straight-line method over an estimated five-year life with an estimated residual value of $10,000. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $1,600.

Required:

1. Prepare the year-end journal entry for depreciation in 2018. No depreciation was recorded during the year.

2. Prepare the year-end journal entry for depreciation in 2018. Assume that the company uses the sum-of-the-years' -digits method instead of the straight-line method.