Calgary Paper Company produces paper for photocopiers. The company has developed standard overhead rates based on a monthly capacity of 80,000 direct-labor hours as follows:

During April, 35,000 units were scheduled for production: however, only 29,000 units were actually produced. The following data relate to April.

Actual direct-labor cost incurred was $1,869,000 for 89,000 actual hours of work.

Actual overhead incurred totaled $1,390,100, of which $525,100 was variable and $865,000 was fixed.

Required:

Prepare two exhibits similar to Exhibit 11-6 and Exhibit 11-8, which show the following variances. State whether each variance is favorable or unfavorable, where appropriate.

Variable-overhead spending variance.

Variable-overhead efficiency variance.

Fixed-overhead budget variance.

Fixed-overhead volume variance.

Variable-Overhead Spending and Efficiency Variances. (Select "None" and enter "0" for no effect (i.e., zero variance). Round "Actual Rate" and "Standard Rate" to 2 decimal places.)

1. Suppose commercial banks borrow from Federal Reserve Banks at the discount rate. What is the impact of this transaction on commercial bank reserves?

a. Commercial bank reserves will increase.

b. Commercial bank reserves will decrease.

c. Commercial banks reserves will be unchanged.

2. Suppose the Fed reduces the reserve ratio. What impact will this transaction have on commercial bank reserves?

a. Commercial bank reserves will increase.

b. Commercial bank reserves will decrease.

c. Commercial bank reserves will be unchanged.

3. Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in the reserve ratio should you recommend?

a. I should recommend increasing the reserve ratio to reduce lending and reduce spending.

b. I should recommend decreasing the reserve ratio to increase lending and increase spending.

4. Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in the discount rate should you recommend?

a. I should recommend increasing the discount rate to reduce lending to reduce spending.and demand-pull inflation.

b. I should recommend decreasing the discount rate to increase lending and increase spending real GDP.

c. I should recommend making no change to the discount rate as it does not affect borrowing or spending.

5. Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. What changes in open market operations should you recommend?

a. I should recommend open market sales to reduce the money supply and reduce demand-pull inflation.

b. I should recommend open market purchases to increase the money supply to increase real GDP.

c. I should recommend open market sales to increase the money supply to increase real GDP.

d. I should recommend no change in open market operations.

6. The liquidity trap occurs when

a. The reserve ratio is increased and borrowing must be reduced.

b. Increased money supply or reduced interest rates fail to encourage increased demand.

c. People decide to hold more of their personal financial assets in cash instead of as checkable deposits.

d. Monetary policy fails to reduce inflation.

1. August Street, Inc. wants to have $7,500,000 in an account exactly 16 years from today. They will make equal quarterly payments of $50,000 beginning next quarter and ending in 16 years. The account earns 8.00% p.a., compounded quarterly. August Street must have $_______ in its account today.

A project has the following cash flows:

The project's payback period is:

What type of seasonal behavior commonly occurs at work places ? If possible, give the percentages of the annual values for each quarter or month and indicate the company or industry of your choice. What type of management problems are created by the seasonality, and how do (or might) managers cope with them? Respond directly to the questions.

Q2. Define the master budget and use your own figures to prepare the following quarter budgets:(2.5 marks) 1- Sales budget 2- Production budget with ending inventory. 3- Raw material budget with ending inventory. 4- Direct labor budget 5- Manufacturing overhead budget

Daybook Inc. A budget of estimated unit production.budgeted production of 403,500 personal journals in 20Y6. Paper is required to produce a journal. Assume six square yards of paper are required for each journal. The estimated January 1, 20Y6, paper inventory is 40,400 square yards. The desired December 31, 20Y6, paper inventory is 38,900 square yards. Paper costs $0.40 per square yard.

Each journal requires assembly. Assume that eight minutes are required to assemble each journal. Assembly labor costs $13.00 per hour.

Prepare a cost of goods sold An accounting device used to plan and control resources of operational departments and divisions.budget for Daybook Inc. using the information above. Assume the estimated inventories on January 1, 20Y6, for finished goods and work in process were $28,000 and $16,500, respectively. Also assume the desired inventories on December 31, 20Y6, for finished goods and work in process were $30,000 and $14,300, respectively. Factory overhead was budgeted at $214,600. Round your interim calculations to nearest cent, if required.

(Chapter 3 LO3)

The ledger of Pina Colada Corp. on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared.

An analysis of the accounts shows the following.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.

The ledger of Perez Rental Agency on March 31 of the current year includes the selected accounts, shown below, before quarterly adjusting entries have been prepared. Debit Credit Prepaid Insurance $ 3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation—Equipment $ 8,400 Notes Payable 20,000 Unearned Rent Revenue 10,200 Rent Revenue 60,000 Interest Expense 0 Salaries and Wages Expense 14,000 An analysis of the accounts shows the following. 1. The equipment depreciates $400 per month. 2. One-third of the unearned rent revenue was earned during the quarter. 3. Interest totaling $500 is accrued on the notes payable for the quarter. 4. Supplies on hand total $900. 5. Insurance expires at the rate of $200 per month.

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.