SKM Innovations, Inc., anticipates producing 40,000 units and incurring the following manufacturing costs for the coming year: raw material, $35 per unit; direct labor, $50 per unit; manufacturing overhead, $1,200,000 + $40 per unit. Using absorption costing, the unit cost for the coming year will be:_______.
a. $85
b. $125
c. $90
d. $155

Answers

Answer 1

Answer:

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Answer 2

According to the SKM Innovations, Inc., the absorption costing, the unit cost for the coming year will be $ 155. The correct option is (d).

What do you mean by the absorption costing?

A managerial accounting technique known as "absorption costing," also known as "full costing," is used to record all expenses related to producing a specific product.

This strategy accounts for both direct and indirect costs, including direct materials, direct labor, rent, and insurance.

You can use the accounting technique of absorption costing to record all of the production expenses related to the creation of a single unit of goods.

Here,

Calculation of absorption costing per unit cost:

ADD -

Direct material = $ 35

Direct labor = $ 50

Variable manufacturing overhead = $ 40

Fixed manufacturing overhead = 1200000 / 40000 = $ 30

Absorption costing per unit cost = $ 155

Therefore, according to the SKM Innovations, Inc., the absorption costing, the unit cost for the coming year will be $ 155.

To know more about the Absorption costing, visit:

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Related Questions

A company ABC has contracted a third-party logistics company XYZ. Which one of the following functions is least likely to be provided by the third-party logistics company (XYZ) to ABC?

a. inventory control
b. customer service function (e.g., storing spare parts)
c. transportation of goods
d. warehouse management
e. production of components

Answers

Answer: Warehouse management

Explanation:

Since the company ABC contracted a third-party logistics company XYZ, some of the functions that can be provided by the third-party logistics company (XYZ) to ABC include:

• inventory control

• customer service function (e.g., storing spare parts)

• transportation of goods

• production of components

It should be noted that performing warehouse management is very unlikely. This simply means the oversight with regards to the operations in the warehouse such as receiving inventory, tracking inventory, managing shipping etc. This should be provided by ABC and not XYZ.

ne implication from the evidence on EI to date is that employers should consider it a factor in hiring employees, especially in jobs that demand ________. good mathematical skills good critical thinking skills good analytical skills the ability to work independently a high degree of social interaction

Answers

Answer:

a high degree of social interaction

Explanation:

Emotional intelligence can be regarded as "emotional quotient" It is been defined as the ability to understand as well as to use and manage one's emotions in positive ways so that individual can be relieve of stress or communicate effectively with others or express empathize with others. With Emotional intelligence individual can overcome challenges as well as defusing conflict. Emotional intelligence (EI) can be regarded as concept which is moderately correlated with job performance.

Components of Emotional intelligence are;

✓Social skills.

✓Self-awareness.

✓Motivation.

✓Empathy.

✓Self-regulation.

It should be noted that One implication from the evidence on EI to date is that employers should consider it a factor in hiring employees, especially in jobs that demand a high degree of social interaction.

Durango Co. has cash receipts of $120,000 and total cash disbursements of $112,000. Durango Co. started with a beginning cash balance of $4,000 and desires an ending cash balance of $8,000. Durango Co. can borrow money in $1,000 increments. How much debt can Durango Co. repay and still meet its desired cash requirement?

Answers

Answer:

See below

Explanation:

Form the above, we can compute Durango Co loan repayment as seen below;

= Beginning cash balance + Cash receipts - total cash disbursement

= $4,000 + $120,000 - $112,500 = 11,500

Ending cash balance = $8,000

Then,

= $11,500 - $8,000

= $2,500

It therefore means that Durango Co. can repay $2,500 and still meets its desired cash requirement

Output from a process contains 0.02 defective units. Defective units that go undetected into final assemblies cost $25 each to replace. An inspection process, which would detect and remove all defectives, can be established to test these units. However, the inspector, who van test 20 units per hour, is paid $8 per hour, including fringe benefits. Should an inspection station be established to test all units

Answers

Answer: Inspection station should be established.

Explanation:

Cost to company if defect is not detected:

= Cost to replace * percentage defects * number of units tested per hour

= 25 * 0.02 * 20 units

= $10 per hour

Inspector is paid $8 per hour.

The fees to the inspector are less than the cost of replacement so the Inspection station should be established as it saves costs.

Absorption and Variable Costing; Inventory Valuation Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs: Direct materials $520 Variable overhead 460 Fixed overhead 180The 100 units of beginning inventory for March had an absorption costing value of $92,000 and a variable costing value of $78,000. For March, assume that Bondware Inc. produced 500 units and sold 540 units.
Compute Bondware's March Cost of Goods Sold using both the variable and absorption costing methods.

Answers

Answer:

Following are the response to the given question:

Explanation:

                            Cost of Goods Sold  

Absorption costing [tex]92000+440\times (520+460+180) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 602400[/tex]

Variable costing [tex]78000+440\times (520+460) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ =509200[/tex]

1 Cash on hand at the company and not yet deposited at the bank. 4,800
2 EFT for monthly utility bill not yet recorded by the company. 1,600
3 Note collected by the bank and not yet recorded by the company. 10,200
4 Interest collected by the bank from note in #3 not yet recorded by the company. 1,300
5 A check witten for insurance expense for $90 was cashed. The check was recorded on the books for $160. ?
6 Checks written by the company but not yet processed by the bank. 2,600
7 Service fee charged by bank but not yet recorded by the company. 100
8 Customer checks determined by the bank to have nonsufficient funds. 3,000
Bank balance at the end of the period. 16,990
Company balance at the end of the period. 12,320
Required:
1-a. What is the revised Cash balance at the end of the period?
1-b. Is the bank reconciliation in balance?
Yes
No
2-a. What is the balance in Cash if the entry to correct the insurance payment hasn't been made?
2-b. Would the bank reconciliation still be in balance?
Yes
No
3. Which statement below is true regarding the effect of the company incorrectly recording a customer deposit at $180,000 rather than $18,000?
No effect on the bank reconciliation.
The difference of $162,000 will be subtracted from the book balance.
The difference of $162,000 will be added to the book balance.
The bank balance will be increased by $180,000.

Answers

Answer:

1 a. $19,190

1 b. Yes

2 a. $19,050

2 b. No

3. The difference of $162,000 will be subtracted from the book balance.

Explanation:

Reconciliation Statement:

Balance as per bank  $16,990

Add: deposits  $4,800

Less; Outstanding Checks - $2,600

Adjusted Bank Balance  $ 19,190

Balance as per Books $12,320

Less: EFT on monthly bills - $1,600

Add: Notes Collected  $10,200

Add: Interest On notes   $1,300

Less: Error in recording   $70

Add: Service Fees -  $100

Less : Checks returned  -$3,000

Adjusted Balance of Books $19,190

Globe Manufacturing Company has just obtained a request for a special order of 12,000 units to be shipped at the end of the current year at a discount price of $7.00 each. The company has a production capacity of 90,000 units per year. At present, Globe is only selling 80,000 units per year through regular channels at a selling price of $11.00 each. Globe's per unit costs at an 80,000 unit level of production and sales are as follows:

Variable manufacturing expenses $4.60
Fixed manufacturing expenses $1.80
Variable selling and administrative expenses $1.00
Fixed selling and administrative expenses $0.45

Variable selling and administrative expense will drop to $0.30 per unit on the special order units. The special order has to be taken in its entirety. This means that by accepting the special order, Globe will be forced to not sell 2,000 units to its regular customers.

Required:
If Globe accepts this special order, by what amount will its net operating income increase or decrease?

Answers

Answer:

Globe Manufacturing Company

f Globe accepts this special order, its net operating income will decrease by:

= $19,300.

Explanation:

a) Data and Calculations:

Special order units = 12,000

Special order price = $7.00 each

Annual Production Capacity = 90,000 units

Annual Sales Units = 80,000

Normal selling price = $11

Per unit costs at 80,000 units level:

Variable manufacturing expenses $4.60

Fixed manufacturing expenses $1.80

Variable selling and administrative expenses $1.00

Fixed selling and administrative expenses $0.45

Variable manufacturing expenses $4.60 * 12,000 = $55,200

Fixed manufacturing expenses $1.80 * 10,000 = $18,000

Variable selling and administrative expenses $0.30 * 12,000 = $3,600

Fixed selling and administrative expenses $0.45 * 10,000 = $4,500

Lost revenue from non-sale of 2,000 at $11 = $22,000

Total costs of special order = $103,300

Sales revenue from special order = $84,000 ($7 * 12,000)

The net operating income will decrease by $19,300 ($103,300 - $84,000)

The Federal Reserve System is __________. ANSWER Unselected the central bank of the United States Unselected also known as the U.S. Treasury Unselected the institution that also regulates stock markets Unselected I DON'T KNOW YET

Answers

Answer: central bank of the United States

Explanation:

The Federal Reserve System is regarded as the central bank of the United States. The function of the Federal Reserve System is to regulate and supervise banks and every other financial institutions in the United States in order to ensure that the banking system is in good shape.

The Federal Reserve System isn't the institution that regulates the stock markets. That's the function of the United States Securities and Exchange Commission.

Imagine you own a food truck that sells gourmet vegan tacos. You rely on many suppliers, all of which also supply their goods to your competitors (other food trucks in the area). For some items, like paper plates and napkins, you have several suppliers. For other items, like extra-firm tofu, you rely on a single supplier. What is an industry analysis most likely to suggest?
a) The power of suppliers is relatively high for some items and relatively low for others. You should find other suppliers of extra-firm tofu so that you have a more diverse supply
b) The power of suppliers is high overall, because you have so many of them You need to consolidate to fewer suppliers, so you have more bargaining power
c) The power of suppliers is relatively low since you work with so many of them. However, you should have your tofu supplier also supply your paper plates and napkins so that you have a more diverse supply of these paper products
d) None of the above Ос.

Answers

Answer:

A

Explanation:

Because there are plenty of suppliers for some goods, the food truck owner is more powerful in this case than the suppliers. Here the power of suppliers is low

For the other goods with only a single supplier. the supplier has more powerful than the taco seller. here the power of supplier is high. If the supplier increases price, the taco seller would most likely have an inelastic demand and would be at the mercy of the supplier

thus, the  power of suppliers is relatively high for some items and relatively low for others.

Five obstacles that must be overcome converting from traditional system to lean

Answers

Management may not be as committed to change or devoted to giving up resources that are needed to convert. Workers/managements may not be cooperative to the change.

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Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information concerning the purchase and use of Echol follows:

Purchase of Echol Echol is purchased in 15-gallon containers at a cost of $115 per container. A discount of 2% is offered by the supplier for payment within 10 days, and Martin Company takes all discounts. Shipping costs, which Martin Company must pay, amount to $130 for an average shipment of 100 15-gallon containers of Echol.

Use of Echol The bill of materials calls for 7.6 quarts of Echol per bottle of cleaning solvent. (Each gallon contains four quarts.) About 5% of all Echol used is lost through spillage or evaporation. In addition, statistical analysis has shown that every 41st bottle is rejected at final inspection because of contamination.

Required:
a. Compute the standard purchase price for one quart of Echol.
b. Compute the standard quantity of Echol (in quarts) per salable bottle of cleaning solvent.
c. Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent.

Answers

Answer: a. $1.90

b. 8.2 quarts

c. $15.58

Explanation:

a. Compute the standard purchase price for one quart of Echol.

Cost per 15 gallon container = $115

Less: Cash discount= 2% × $115 = $2.30

Net cost = $115 - $2.30 = $112.70

Add: Shipping cost = $139/100 = $1.30

Total cost = $112.70 + $1.30 = $114

Number of quarts per container = (15 × 4) = 60

Standard cost per quart = $114/60 = $1.90

b. Compute the standard quantity of Echol (in quarts) per salable bottle of cleaning solvent.

Content per bill of materials = 7.6 quart

Add: Allowance for evaporation and spillage = 8.0 - 7.6 = 0.4 quart

Add: Allowance for rejected unit = 8.0/40 = 0.2 quarts

Standard quantity of Echol per salable bottle of cleaning solvent = 7.6 + 0.4 + 0.2 = 8.2 quarts

c. Using the data from (1) and (2) above, prepare a standard cost card showing the standard cost of Echol per bottle of cleaning solvent.

This will be:

= 8.2 quart × $1.90 per quart

= $15.58

A recent news story reported that the Organization of Petroleum Exporting Countries is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of vacation travel. What would be the combined effect of these two events on the summer market for gasoline?
a) an unpredictable change in the price and a decrease in the quantity
b) an unpredictable change in both the price and the quantity
c) an increase in the price and an unpredictable change in the quantity
d) an increase in the price and the quantity

Answers

Answer:

Option "C" is the answer.

Explanation:

Option "C" is the answer.

The decrease in the supply of oil will shift the supply curve leftwards. Similarly, the increases in the demand will shift the demand curve rightwards. The leftwards shift in the supply and rightward shift in the demand curve will result in an increase in price but the change in quantity can not be predicted because the magnitude of change will depend on the shift in the curves.

The cost method of accounting for stock: __________

a. recognizes dividends as income
b. is only appropriate as part of a consolidation
c. requires the investment be increased by the reported net income of the investee
d. requires the investment be decreased by the reported net income of the investee

Answers

Answer:

Option a (recognizes.................income) is the correct answer.

Explanation:

The proportion of even more inventories is below 20 percent, therefore the firm sends dividends on the inventories which are incorporated into the personal income tax rate.Dividends paid mostly by the investor, not adjusting as necessary for the investor's total earnings, should be declared as compensation or earnings.

The provided situation is not connected with other possibilities. So the above option is the correct answer.

The marginal seller is the seller who Group of answer choices cannot compete with the other sellers in the market. would leave the market first if the price were any lower. can produce at the lowest cost. has the largest producer surplus.

Answers

Answer:

would leave the market first if the price were any lower.

Explanation:

Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.

Thus, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.

In Economics, The law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.

A marginal seller refers to an individual or business firm that is most willing to sell his or her goods and services at a price that is typically equal to their economic cost while forfeiting producer surplus.

A producer surplus is the amount a buyer is willing to pay for a good minus the cost of producing the good.

Hence, a marginal seller is the seller who would leave the market first if the price were any lower.

TB Problem Qu. 15-131 (Algo) Clayborn Corporation's net cash provided by operating activities... Clayborn Corporation's net cash provided by operating activities was $118,800; its net income was $106,100; its income taxes were $46,900; its capital expenditures were $96,300; and its cash dividends were $30,200. Required: Determine the company's free cash flow. (Negative amounts should be indicated by a minus sign.)

Answers

Answer:

See below

Explanation:

Clayborn Corporation

Determination of free cash flow

Free cash flow = Net cash provided by operating activities - Capital expenditure - Cash dividends paid

Free cash flow = $118,800 - $96,300 - $30,200

Free cash flow = -$7,700

Therefore, Clayborn corporation's free cash flow is -$7,700

Statement of Cash Flows (Indirect Method)
Use the following information regarding the Lund Corporation to (a) prepare a statement of cash flows using the indirect method and (b) compute Lund's operating-cash-flow-to-current-liabilities ratio.
Accounts payable increase $13,500
Accounts receivable increase 6,000
Accrued liabilities decrease 4,500
Amortization expense 9,000
Cash balance, January 1 33,000
Cash balance, December 31 22,500
Cash paid as dividends 43,500
Cash paid to purchase land 135,000
Cash paid to retire bonds payable at par 90,000
Cash received from issuance of common stock 52,500
Cash received from sale of equipment 25,500
Depreciation expense 43,500
Gain on sale of equipment 6,000
Inventory decrease 19,500
Net income 114,000
Prepaid expenses increase 3,000
Average current liabilities 150,000
a. Use negative signs with cash outflow answers.
LUND CORPORATION
Statement of Cash Flows
For Year Ended December 31
Cash Flow from Operating Activities
Net Income Answer
Add (deduct) items to convert net income to cash basis
Depreciation Answer
Amortization Answer
Gain on Sale of Equipment Answer
Accounts Receivable Increase Answer
Inventory Decrease Answer
Prepaid Expenses Increase Answer
Accounts Payable Increase Answer
Accrued Liabilities Decrease Answer
Cash Flow Provided by Operating Activities Answer
Cash Flow from Investing Activities
Sale of Equipment Answer
Purchase of Land Answer
Cash Used by Investing Activities Answer
Cash Flow from Financing Activities
Issuance of Common Stock Answer
Retirement of Bonds Payable Answer
Payment of Dividends Answer
Cash Used by Financing Activities Answer
Net Decrease in Cash Answer
Cash at Beginning of Year Answer
Cash at End of Year Answer
b. Operating-cash-flow-to-current-liabilities ratio (Round answers to two decimal places.)

Answers

Answer:

Cash Flow from Operating Activities

Net Income                                                             $114,000

Items to convert net income to cash basis

Depreciation                                                           $43,500

Amortization                                                           $9,000

Gain on Sale of Equipment                                  -$6000

Accounts Receivable Increase                            -$6000

Inventory Decrease                                               $19500

Prepaid Expenses Increase                                 -$3000

Accounts Payable Increase                                   $13500

Accrued Liabilities Decrease                                -$4500

Cash Flow Provided by Operating Activities A  $180,000

Cash Flow from Investing Activities

Sale of Equipment                                                  $25,500

Purchase of Land                                                 -$135,000

Cash Used by Investing Activities B                  -$109,500

Cash Flow from Financing Activities

Issuance of Common Stock                                   $52,500

Retirement of Bonds Payable                               -$90,000

Payment of Dividends                                           -$43,500

Cash Used by Financing Activities C                 -$81,000

Net Decrease in Cash(A+B+C)                             -$10,500

Cash at Beginning of Year                                     $33,000

Cash at End of Year                                                $22,500

b. Operating cash flow to Current liabilities ratio = Operating Activities Cash Flow / Average current liabilities

Operating cash flow to Current liabilities ratio = $180,000 / $150,000

Operating cash flow to Current liabilities ratio = 1.2

When the price of Milk is $5 per gallon consumers demand 1,000 boxes of Boo Berry Cereal. When the price of milk increases to $5.50 per gallon consumers demand 700 boxes of Boo Berry Cereal.

Required:
a. What is the percentage change in the price of milk?
b. What is the percentage change in the quantity demanded for Boo Berry Cereal?

Answers

Answer: a. 10%

b. -30%

Explanation:

a. What is the percentage change in the price of milk?

Old price = $5.00

New price = $5.50

Percentage change = ($5.50 - $5.00)/$5.00 × 100

= 0.50/5.00 × 100

= 1/10 × 100

= 10%

Percentage change on price = 10%

b. What is the percentage change in the quantity demanded for Boo Berry Cereal?

Old quantity = 1000

New quantity = 700

Percentage change = (700 - 1000)/1000 × 100

= -300/1000 × 100

= -30%

The percentage change in the quantity demanded for Boo Berry Cereal is -30%.

¿sí se vende mercancía en que tipo de cuenta debe registrar el IVA de dicha compra?

a) ingreso
b) costo de venta
c) costo de producción
d) pasivo

Answers

Answer:

the answer is cost of buying or cost of production

la respuesta es el costo de compra o el costo de producción

Explanation:

i speak Spanish and business is pretty easy

On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the entry to bring the accumulated depreciation up-to-date, the delivery van had accumulated depreciation of $18,000. Patel received $2,000 cash from the purchaser of the delivery van.

Required:
Write the necessary Journal entry to record the sale.

Answers

Answer:

Date      Account titles and Explanation                  Debit        Credit

Dec 29  Cash                                                              $2,000

              Accumulated depreciation - Delivery van  $18,000

                       Delivery van                                                          $20,000

               (To record the sale of delivery van)

Bloom Company management predicts that it will incur fixed costs of $266,000 and earn pretax income of $360,400 in the next period. Its expected contribution margin ratio is 54%. Required: 1. Compute the amount of total dollar sales. 2. Compute the amount of total variable costs.

Answers

Answer:

1. $1,160,000

2. $534,600

Explanation:

1. Computation for the amount of total dollar sales

Using this formula

Total dollar sales=Fixed costs plus pretax income / Contribution margin ratio

Let plug in the formula

Total dollar sales=$626,400 / 54%

Total dollar sales =$1,160,000

($266,000+$360,400=$626,400)

Therefore the amount of total dollar sales is $1,160,000

2.Computation for the amount of total variable costs.

Sales $1,160,000

Less:

Fixed costs ($265,000)

Pretax income ($360,400)

Variable costs $534,600

Therefore the amount of total variable costs is $534,600

If demand increases and supply stays the same, price will be………

Answers

Answer:

If demand increases and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price.

Explanation:

If demand increases and supply remains unchanged, a shortage occurs, leading to a higher equilibrium price. If demand decreases and supply remains unchanged, a surplus occurs, leading to a lower equilibrium price. If demand remains unchanged and supply increases, a surplus occurs, leading to a lower equilibrium price.

Answer:

If demand increases and supply stays the same then equilibrium quantity goes up, and equilibrium price goes up. If demand decreases and supply increases then equilibrium quantity could go up, down, or stay the same, and equilibrium price will go down

Explanation:

Assume that Parker Company will receive SF100,000 in 360 days. Assume the following interest rates: U.S. Switzerland 360-day borrowing rate 7% 5% 360-day deposit rate 6% 4% Assume the forward rate of the Swiss franc is $1.0455 and the spot rate of the Swiss franc is $1.0037. If Parker Company uses a Money Market Hedge, it will receive _____in 360 days.

Answers

Answer:

$99,414

Explanation:

Calculation to determine how much he will receive If Parker Company uses a Money Market Hedge,

First step is to determine the amount borrowed

Borrowed=(SF100,000/1.05)

Borrowed= SF95,238

Second step is convert  SF95,238 to dollar

SF 95,238*$1.0037

=$95,590.38

Now let determine the amount to receive

Amount received=$95,590.38*1.04

Amount received=$99,414

Therefore If Parker Company uses a Money Market Hedge, it will receive $99,414 in 360 days.

Explain 2 reasons why businesses create business plan?

Answers

determine whether your business has a chance of making a good profit.
provide an estimate of your start-up costs, and how much you'll need to invest or finance.

Which of the following is an indirect manufacturing cost in a manufacturing company?

a. Indirect Materials
b. Real estate taxes on the factory
c. Salary of production floor manager
d. All of the above would be considered indirect manufacturing costs

Answers

Answer:

d

Explanation:

Indirect costs are costs of production that cannot be directly linked to a unit, activity or product.

Indirect manufacturing costs are cost of production that cannot be directly linked to a good that is produced.

Examples of indirect manufacturing cost include :

Indirect Materialsutility machine maintenance  Real estate taxes on the factoryDepreciation Salary of production floor manager

The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns. In recent years, the IRS has been inundated with taxpayer calls and has redesigned its phone service as well as posting answers to frequently asked questions on its website (The Cincinnati Enquirer, January 7, 2010). According to a report by a taxpayer advocate, callers using the new system can expect to wait on hold for an unreasonably long time of minutes before being able to talk to an IRS employee. Suppose you select a sample of callers after the new phone service has been implemented; the sample results show a mean waiting time of minutes before an IRS employee comes on line. Based upon data from past years, you decide it is reasonable to assume that the standard deviation of waiting times is minutes. Use .
a. State the hypotheses. :
b. What is the -value (to 4 decimals)?
c. Using , can you conclude that the actual mean waiting time is significantly less than the claim of minutes made by the taxpayer advocate.

Answers

Complete question is;

The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns. In recent years, the IRS has been inundated with taxpayer calls and has redesigned its phone service as well as posting answers to frequently asked questions on its website (The Cincinnati Enquirer, January 7, 2010). According to a report by a taxpayer advocate, callers using the new system can expect to wait on hold for an unreasonably long time of 14 minutes before being able to talk to an IRS employee. Suppose you select a sample of 50 callers after the new phone service has been implemented; the sample results show a mean waiting time of 12 minutes before an IRS employee comes on line. Based upon data from past years, you decide it is reasonable to assume that the standard deviation of waiting times is 10 minutes. Use a = 0.05.

a. State the hypotheses.

b. What is the p-value (to 4 decimals)?

c. Using a = 0.05, can you conclude that the actual mean waiting time is significantly less than the claim of 14 minutes made by the taxpayer advocate

Answer:

A) Null hypothesis; H0: μ ≥ 14

Alternative hypothesis; Ha: μ < 14

B) P-value ≈ 0.0793

C) The p-value is less than the significance value and thus we will fail to reject the null hypothesis and conclude that the evidence is not sufficient to reject the claim that the actual mean waiting time is significantly less than the claim of 14 minutes made by the taxpayer advocate

Explanation:

We are given;

Population mean time; μ = 14

Sample mean time; x¯ = 12

Population size; n = 50

Standard deviation; σ = 10

A) Let's state the hypotheses;

Null hypothesis; H0: μ ≥ 14

Alternative hypothesis; Ha: μ < 14

B) Let's first find the test statistic from the formula;

z = (x¯ - μ)/(σ/√n)

z = (12 - 14)/(10/√50)

z = -1.41

From online p-value from z-score calculator attached using; z = -1.41: α = 0.05 and one tailed hypothesis, we have;

P-value ≈ 0.0793

C) The p-value is less than the significance value and thus we will fail to reject the null hypothesis and conclude that the evidence is not sufficient to reject the claim that the actual mean waiting time is significantly less than the claim of 14 minutes made by the taxpayer advocate

a. Develop a probability distribution for x
b. Compute the expected value of x
c. Compute the variance and standard deviation for x
d. Comment on what your results imply about wind conditions during boating accidents

Answers

a. Answer:The corresponding probabilities are obtained by converting the percentages into probabilities. That is, by dividing each value with 100.

F/N (where F =percentage of accidents and N =100)

Explanation:

 X 0 1 2 3 4

f(X) 0.096 0.57 0.238 0.077 0.019

b.  The formula for the expected value of a discrete random variable is E(x)= µ=∑xf(x)

X F(X) X.f(X)

0 0.096 0

1 0.57 0.57

2 0.238 0.476

3 0.077 0.231

4 0.019 0.076

Total         1      1.353

Hence, the value for expected value of X is 1.353

The formula for the variance of the discrete random variables is Var(x)= σ² =∑(x-µ)²f(x)

X F(X) (x-µ) (x-µ)² (x-µ)².f(x)

0 0.096 -1.353 1.8306 0.1757

1 0.57 -0.353 0.1246 0.0710

2 0.238 0.647 0.4186 0.0996

3 0.077 1.647 2.7126 0.2089

4 0.019 2.647 7.0066 0.1331

Total 1 3.235 12.0930 0.6884

Hence, the variance of the random variable x is 0.6884

The formula for the standard deviation of the discrete random variables is

σ=√(∑[(x-µ)².f(x)] )

Thus, the standard deviation is σ= √0.6884

                     =0.8297

Hence, the standard deviation of the random variable x is 0.8297  

Steel and aluminum are substitutes. If the price of steel increases, other things remaining the same, we would expect the price of aluminum to __________ and the equilibrium quantity of aluminum to__________
For the 1st question, the options are increase, decrease, remain unchanged
For the 2nd question, the options are increase, decrease, remain unchanged

Answers

Answer:

increase

increase

Explanation:

Substitute goods are goods that can be used in place of another good.

If price of steel increases, demand for aluminium increases. this shifts its demand curve to the right. Equilibrium quantity and price increases as a aresult

Trio Company reports the following information for the current year, which is its first year of operations.

Direct materials $13 per unit
Direct labor $19 per unit
Overhead costs for the year Variable overhead $4 per unit
Fixed overhead $200,000 per year
Units produced this year 25,000 units
Units sold this year 19,000 units
Ending finished goods inventory in units 6,000 units

Required:
Compute the cost per unit of finished goods using 1) absorption costing and 2) variable costing.

Answers

Answer:

1. $44

2.$36

Explanation:

Absorption Costing

Include all manufacturing costs, both variable and fixed in product cost.

Product Cost

Direct materials             $13

Direct labor                    $19

Variable overhead         $4

Fixed overhead              $8

Total                              $44

Variable Costing

Include only the variable manufacturing cost in product costing.

Product Cost

Direct materials             $13

Direct labor                    $19

Variable overhead         $4

Total                              $36

In recent years, rules have tightened such that those who work for the U.S. government in trade negotiations are now restricted from working for lobbyists for foreign firms. Take the stance of either for or against that statement. Provide justification for your stance.

Answers

Answer: For this statement.

Explanation:

People will generally offer their loyalties to those who pay them the highest or who pay them at all and companies will typically be loyal to their country of origin.

What this means is that trade negotiators who work for lobbyists of foreign firms will typically want to advance the interests of the foreign firms when negotiating trade deals for the U.S. government.

This presents a problem because the foreign companies might want to negotiate a deal that favors their own countries over the United States so if trade negotiators that are on their side are the ones negotiating for the United States, the U.S. might not get a good enough deal.

Imagine for instance, a person negotiating a trade deal for the U.S. with China but the person works for lobbyists of Huawei. It is reasonable to assume that the person would want to advance the interests of China on behalf of Huawei. Restricting such a person from negotiating for the U.S. reduces such a possibility.

Compute the Work-In-Process transferred to the finished goods warehouse on April 30 using the following information:

Work-In-Process Inventory, April 30 $245
Direct materials purchased during April $220
Work-In-Process inventory, April 1 $270
Direct labor costs incurred $370
Manufacturing overhead costs $320
Direct materials used in production $195

Answers

Answer:

$910

Explanation:

Computation for the Work-in-Process transferred to the finished goods warehouse on April 30

Using this formula

Work-in-Process transferred to finished goods warehouse=Work-In-Process Inventory, April 1+(Direct materials used in production+Direct labor costs incurred +Manufacturing overhead costs)-Work-In-Process Inventory, April 30

Let plug in the formula

Work-in-Process transferred to finished goods warehouse=$270 + ($195 + $370 + $320) - $245

Work-in-Process transferred to finished goods warehouse=$270 +$885-$245

Work-in-Process transferred to finished goods warehouse= $910

Therefore the Work-in-Process transferred to the finished goods warehouse on April 30 is $910

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