Business
Lysiak Corporation uses an activity based costing system to assign overhead costs to products. In the first stage, two overhead costs--equipment depreciation and supervisory expense-are allocated to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:Overhead costs: Equipment depreciation $ 47,000Supervisory expense $ 6,000Distribution of Resource Consumption Across Activity Cost Pools:Activity Cost Pools Machining Order Filling OtherEquipment depreciation 0.60 0.10 0.30Supervisory expense 0.60 0.20 0.20In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:Activity: MHs (Machining) Orders (Order Filling)Product C9 6,900 200Product U0 3,100 800Total 10,000 1,000What is the overhead cost assigned to Product C9 under activity-based costing?
Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer. Determine Kens gross income and complete page 1 of Form 1040 for Ken.a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.e. Ken resided in Ireland from July 1, 2011, through June 30, 2012, visiting relatives. While he was there he earned $35,000 working in his cousins pub. He was paid $17,000 for his services in 2011 and $18,000 for his services in 2012. Assume Ken elects to use the foreign-earned income exclusion to the extent he is eligible. f. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.g. Kens son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken. Ken received the check on December 30 in the amount of $1,100.h. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $5,850 in itemized deductions last year (the standard deduction for a single filer was 5,800).i. Ken received $30,000 of interest from corporate bonds and money market accounts.
Understanding how shirking decreases team outputEleanor sells bottled water from a small stand by the beach. On the last day of summer vacation, many people are on the beach, and Eleanor realizes that she can make a lot more money this day if she hires someone to walk up and down the beach selling water. She finds a college student named Darnell and makes him the following offer: They'll each sell water all day and split their earnings (revenue minus the cost of water) equally at the end of the day. Eleanor knows that if they both work hard, Darnell will earn $110 on the beach and Eleanor will earn $240 at her stand, so they will each take home half of their total revenue: $110+$2402=$175$110+$2402=$175. If Darnell shirks, he'll generate only $60 in earnings. Eleanor does not know that Darnell estimates his personal cost (or disutility) of working hard as opposed to shirking at $30.Once out of Eleanor's sight, Darnell faces a dilemma: work hard (put in full effort) or shirk (put in low effort).In terms of Darnell's total utility, it is worse for him to_____ .Taking into account the loss in utility that working hard brings to Darnell, Eleanor and Darnell together _____ better off if Darnell shirks instead of working hard.Eleanor knows Darnell will shirk if unsupervised. She considers hiring her good friend Carrie to keep an eye on Darnell. The most Eleanor should be willing to pay Carrie to supervise Darnell, assuming supervision is sufficient to encourage Darnell to work hard, is _______ .It turns out that Eleanor's friend Carrue is unavilable that day, so Eleanor cannot find a reliable person to watch Darnell. Which of the following arrangements will ensure that Darnell works hard without making Eleanor any worse off than she is when Darnell shirks?A. Allow Darnell to keep 75% of the revenue from the bottles of water he sells instead of 50%B. Allow Darnell to keep 57% of the revenue from the bottles of water he sells instead of 50%C. Pay Darnell $70, regardless of how many bottles of water he sellsD. Make Darnell promise to work hard
Lymen International is considering a significant expansion to its product line. The sales force is excited about the opportunities that the new products will bring. The new products are a significant step up in quality above the companys current offerings, but offer a complementary fit to its existing product line. Fred Riddick, senior production department manager, is very excited about the high-tech new equipment that will have to be acquired to produce the new products. Barbara Dyson, the companys CFO, has provided the following projections based on results with and without the new products.Without New ProductsWith New ProductsSales revenue$12,149,200$16,618,200Net income$488,900$885,800Average total assets$5,282,800$13,930,400(a)Compute the companys return on assets, profit margin, and asset turnover, both with and without the new product line. (Round answers to 0 decimal places, e.g. 2% and asset turnover to 1 decimal place, e.g. 6.2)Without new productsWith new productsReturn on assetsInternational sidering offerings, xut offer compl step up with New Products Sales 2,145.20 Average tel Without new products with now products ej abou: red Riddick, bring. Th producti depart%%Profit margin%%Asset turnover
Bismark Inc, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:Activity Cost Pool Activity Cost Activity Cost DriverMachine Setup $600,000 15,000 setup hoursMaterial handling 90,000 3,000 tons of materialsMachine operation 420,000 12,000 machine hoursThe following data are for the production of single batches of two products, Camshafts and Swing Drives during the month of August: Camshafts Swing DrivesUnits produced 1,500 900Machine hours 4 5Direct labor hours 300 500Direct labor cost $7,000 $12,000Direct materials cost $40,000 $30,000Tons of materials 10 7Setup hours 5 8Determine the unit costs of Camshafts and Swing Drives using ABC. Round answers to the nearest cent.Camshafts $ _____Swing Drives $_____