Question: A company operates five different plants, located

> Madden Limited is the largest Canadian producer of dairy products. The company needs to replace its equipment. The current equipment was purchased 18 years ago at a cost of $2 million, and it was depreciated over a 20-year period using the straight-line

> Saskatoon First Company must expand its manufacturing capabilities to meet the growing demand for its products. The first alternative is to expand its current manufacturing facility, which is located next to a vacant lot in the heart of the city. The sec

> The Taylor Company Limited reported a cost of goods sold of $640,000 last year, when 20,000 units were produced and sold. The cost of goods sold was 35% materials, 42% direct labour, and 23% overhead. The company is considering the purchase of a machine

> BioFarm Inc. wants to replace its current equipment with new high-tech equipment. The existing equipment was purchased five years ago at a cost of $120,000. At that time, the equipment had an expected life of 10 years, with no expected salvage value. The

> Pronto Plumbing Company is a newly formed company that specializes in plumbing services for home and business. The owner, Paul Pronto, had divided the company into two segments: home plumbing services and business plumbing services. Each segment is run b

> As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in the clothing department of Dunham Company for the month of October: Prepare and discuss a flexible budget report. / / As a result of this budget report,

> Sublette Company's manufacturing overhead budget for the first quarter of 2020 contained the following data: Prepare a flexible budget report and a responsibility report for manufacturing overhead. Actual variable costs were as follows: indirect materi

> The actual selling expenses incurred in March 2020 by Vincent Company are as follows: Prepare flexible budget reports for selling expenses. / / Instructions a. Prepare a flexible budget performance report for March using the budget data in E11.21, assu

> Vincent Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are as follows: sales commissions 6%; advertising 4%; travelli

> Muhsin Company has gathered the following information about its product: Direct materials: Each unit of product contains 4.5 kg of materials. The average waste and spoilage per unit produced under normal conditions is 0.5 kg. Materials cost $5 per kilogr

> Using the information in E11.19, assume that in July 2020, Raney Company incurs the following manufacturing overhead costs: Prepare flexible budget reports for manufacturing overhead costs, and comment on findings. Instructions a. Prepare a flexible bu

> Raney Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing overhead costs per direct labour hour are as follows: Prepare flexible budget reports for manufacturing overhead costs. Indi

> Pargo Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March. Prepare and evaluate a static budget report. Instructio

> Jim Thome has prepared the following list of statements about budgetary control. Understand the concept of budgetary control. 1. Budget reports compare actual results with planned objectives. 2. All budget reports are prepared on a weekly basis. 3. Manag

> In May 2020, the budget committee of Big Jim Stores assembles the following data for preparing the merchandise purchases budget for the month of June: Prepare a purchases budget and budgeted income statement for a merchandiser. 1. Expected sales: June $5

> Pisani Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the budget for the first two quarters of 2020. It still needs to do only the cash budget. It has collected the following informati

> NIU Company's budgeted sales and direct materials purchases are as follows: Prepare schedules of expected collections and payments. NIU's sales are 40% cash and 60% credit. It collects credit sales 10% in the month of sale, 50% in the month following s

> Lockwood Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2020, the following data are available: Prepare a selling and administrative expenses budget for two quarter

> Keyser Company is preparing its manufacturing overhead budget for 2020. Relevant data are as follows: Prepare a manufacturing overhead budget for the year. 1. Units to be produced (by quarters): 10,000, 12,000, 15,000, 18,000 2. Direct labour: 1.5 hours

> Pacer Inc. is preparing its direct labour budget for 2020 from the following production budget for a full calendar year: Prepare a direct labour budget. Each unit requires 1.5 hours of direct labour. Instructions Prepare a direct labour budget for 202

> Raul Mondesi manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a 200-litre batch: 90 litres of grape concentrate at $1.35 per litre 27 kg of granulated sugar at $0.60 per

> Marley Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows: 1. Purchased 24,000 units of raw materials on account at a cost of $4.50 per unit. Standard cost was $4.30 per unit. 2. Issued 24

> Data for Rondell Company are given in E12.30. Instructions a. Journalize the incurrence of the overhead costs and the application of overhead to the job, assuming a standard cost accounting system is used. b. Prepare the adjusting entry for the overhead

> Data for Kopecky Inc. are given in E12.23. Instructions Journalize the entries to record the materials and labour variances. Data from E12.23: Kopecky Inc., which produces a single product, has prepared the following standard cost sheet for one unit of

> Tovar Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fire. The controller asks for your help in reconstructing some missing entries and balances. Instructions a. Materials Price Variance shows a $3,0

> The following is a list of terms related to performance evaluation: 1. Balanced scorecard 2. Variance 3. Learning and growth perspective 4. Non-financial measures 5. Customer perspective 6. Internal process perspective 7. Ideal standards 8. Normal standa

> Carlos Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances: In addition, 8,000 units of product were sold at $8 per unit. Each unit sold had a standard cost of $5. Selling and admin

> Archangel Corporation prepared the following variance report. / / Instructions Fill in the appropriate amounts or letters for the question marks in the report. Prepare an income statement for management.

> Imperial Landscaping plants grass seed as basic landscaping for business terrains. During a recent month, the company worked on three projects (Ames, Korman, and Stilles). The company is interested in controlling its material costs—grass seed costs—for t

> Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) ………….. $10.00 Direct labour (2 hours at $12 per hour) ………………………………. 24.00 Variable manufacturing overhead ……………………………………

> Environmental Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected: Prepare schedules for cash receipts and

> Lovitz Company is planning to produce 2,000 units of a product in 2020. Each unit requires 3 kg of materials at $5 per kilogram and a half hour of labour at $15 per hour. The overhead rate is 70% of direct labour. Calculate budgeted amounts and standard

> Rondell Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: Standard direct labour hours allowed …... 9,000 Actual direct labour

> Jackson Company’s overhead rate was based on estimates of $200,000 for overhead costs and 20,000 direct labour hours. Jackson’s standards allow two hours of direct labour per unit produced. Production in May was 900 units, and actual overhead incurred i

> Pink Martini Corporation is projecting a cash balance of $30,000 in its December 31, 2019, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $180,000. The schedule of ex

> The loan department of Your Local Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred, and the accounting records for the department were mostly destroyed. The following data

> Nunez Company expects to have a cash balance of $45,000 on January 1, 2020. Relevant monthly budget data for the first two months of 2020 are as follows: Prepare a cash budget for two months. 1. Collections from customers: January $100,000; February $160

> The following information was taken from the annual manufacturing overhead cost budget of Fernetti Company: Variable manufacturing overhead costs …………………………. $34,650 Fixed manufacturing overhead costs ……………………………. $19,800 Normal production level in labo

> Haven Company has accumulated the following budget data for the year 2020: Prepare a budgeted income statement for the year. 1. Sales: 30,000 units; unit selling price $80 2. Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram;

> The following direct materials and direct labour data are for the operations of Batista Manufacturing Company for the month of August: Instructions a. Calculate the total, price, and quantity variances for materials and labour. b. Provide two possible

> Tyson Chandler Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 2 kg of materials, which cost $3 per kilogram. Tyson Chandler Company

> During March 2020, Garner Tool & Die Company worked on four jobs. A review of the direct labour costs reveals the following summary data: Prepare a variance report for direct labour. Analysis reveals that Job A257 was a repeat job. Job A258 was a r

> Black Rose Company has always done some planning for the future, but the company has never prepared a formal budget. Now that the company is growing larger, it is considering preparing a budget. Explain the concept of budgeting. Instructions Write a mem

> Buerhle Company purchased (at a cost of $12,800) and used 3,300 kg of materials during May. Buerhle’s standard cost of materials per unit produced is based on 2 kg per unit at a cost $4 per kilogram. Production in May was 1,540 units. Instructions a. Ca

> Kopecky Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product: Direct materials (6 kg at $2.50 per kilogram) ……………………… $15.00 Direct labour (3.1 hours at $12 per hour) …………………………….. $37.20 Dur

> Rapid Repair Services Inc. is trying to establish the standard labour cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month: Actual time spent on the oil change …………………………. 1.0 ho

> Électronique Instruments, a rapidly expanding electronic parts distributor, is formulating its plans for 2020. John Kedrowski, the firm's director of marketing, has completed his 2020 forecast and is confident that the company will meet or exceed sales e

> You have received a promotion and are now the manager of the Lakeview Lounge at the hotel where you have been working for some time. The Lakeview Lounge provides alcoholic and non-alcoholic drinks, plus a range of light snacks during the day when the hot

> Canadian Products Corporation participates in a highly competitive industry. To compete successfully and reach its profit goals, the company has chosen the decentralized form of organization. The company evaluates each manager of a decentralized investme

> The performance of the division manager of Rarewood Furniture is measured by the ROI, defined as divisional segment income divided by the gross book value of total divisional assets. For existing operations, the division's projections for the coming year

> Raddington Industries produces tool and die machinery for manufacturers. In 2010, the company acquired one of its suppliers of alloy steel plates, Reigis Steel Company. In order to manage the two separate businesses, the operations of Reigis are reported

> Madison Company purchased the Tek Company three years ago. Before the acquisition, Tek manufactured and sold plastic products to various customers. Tek has since become a division of Madison and now manufactures plastic Tek products only for products mad

> On January 1, 2021, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2021: Prepare production and direct materials budgets by quarters for six months. 1. Sales units: First quarter 5,000; sec

> In this chapter, you learned about the benefits of budgeting for a business. It is also important for individuals, especially students. Jo is an accounting major. Jo's estimate of expenses for the next eight-month academic year (September to May) are giv

> You are an accountant in the budgetary, projections, and special projects department of Cross Canada Inc., a large manufacturing company. The president, Karim Bousalloum, asks you on very short notice to prepare some sales and income projections covering

> In 2013, CPA Canada was established with the goal of uniting the three accounting designations—CA, CGA, and CMA—into one designation: the CPA, or Chartered Professional Accountant. Each province and territory has the authority to regulate the accounting

> At Camden Manufacturing Company, production workers in the painting department are paid based on productivity. The labour time standard for a unit of production is established through periodic time studies conducted by Foster Management Inc. In a time st

> Delta Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Direct materials (2 kg at $7.50 per kilogram) …………… $15.00

> The Kohler Chemical Manufacturing Company produces two primary chemical products to be used as base ingredients for a variety of products. The 2020 budget for the two products (in thousands) was as follows: // The following planning assumptions were us

> You have started working as a cost accountant for a firm that has only been in business for one month. The firm is able to buy a new type of biodegradable plastic at a fixed price of $100 per roll. The plastic is then cut and sealed to make garbage bags.

> Mo Coughlin and Associates is a medium-sized company located near a large metropolitan area in the Prairies. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensive homes, restaurants, and hotels. Although some of th

> Agmar Professionals, a management consulting firm, specializes in strategic planning for financial institutions. Tim Agler and Padmasree Marlin, partners in the firm, are assembling a new strategic planning model for clients to use. The model is designed

> The manufacturing overhead budget for Dillons Company contains the following items: Variable expenses ……………………………………. Indirect materials …………………….. $24,000 Indirect labour ……………………………. 12,000 Maintenance expenses ……………….. 10,000 Manufacturing supplies …

> Samano Industries has adopted the following production budget for the four quarters of 2020: Prepare a direct materials purchases budget. Each unit requires 4 kg of raw materials costing $6 per kilogram. On December 31, 2019, the ending raw materials i

> At the end of June, the manager of the B.C. manufacturing plant was provided with the following variance analysis report. The manager immediately called the production supervisor, demanding an explanation for the large unfavourable variance for the qua

> In 2013, only 26% of Americans had confidence in U.S. banks, which is still far below the pre-recession level of 41% reported in June 2007 (www.gallup.com, June 26, 2014). a. What is the probability that fewer than half of four Americans in 2013 have con

> The director of graduate admissions at a large university is analyzing the relationship between scores on the math portion of the Graduate Record Examination (GRE) and subsequent performance in graduate school, as measured by a student’s grade point aver

> An appliance store sells additional warranties on its refrigerators. Twenty percent of the buyers buy the limited warranty for $100 and 5% buy the extended warranty for $200. What is the expected revenue for the store from the warranty if it sells 120 re

> Consider the following cumulative frequency distribution: Class ……………………………………………………………….. Cumulative Frequency 15 up to 25 ……………………………………………………………………………………. 30 25 up to 35 ……………………………………………………………………………………. 50 35 up to 45 …………………………………………………………………………………

> Consider the multiple linear regression model, y = β0 + β1x1 + β2x2 + β3x3 + ε. You wish to test whether the slope coefficients β1 and β3 are jointly significant. Define the restricted and unrestricted models needed to conduct the test.

> Thirty observations were used to estimate y = β0 + β1x + ε. A portion of the results is shown in the accompanying table. a. What is the estimate for β1? Interpret this value. b. What is the sample regr

> In a multiple regression, the following sample regression equation is obtained: a. Predict y if x1 equals 20 and x2 equals 35. b. Interpret the slope coefficient of x1. ŷ = 152 + 12.9x, + 2.7x2.

> In a multiple regression, the following sample regression equation is obtained: a. Predict y if x1 equals 40 and x2 equals −10. b. Interpret the slope coefficient of x2. y = -8 + 2.6x, – 47.2x2.

> In a simple linear regression, the following sample regression equation is obtained: a. Interpret the slope coefficient. b. Predict y if x equals −15. ŷ = 436 – 17x.

> The accompanying data file shows the square footage and associated property taxes for 20 homes in an affluent suburb 30 miles outside of New York City. Estimate a home’s property taxes as a linear function of its square footage. At the 5% significance le

> The accompanying data file shows midterm and final grades for 32 students. Estimate a student’s final grade as a linear function of a student’s midterm grade. At the 1% significance level, is a student’s midterm grade significant in explaining a student’

> The accompanying table shows a portion of quarterly data on Nike’s revenue (in $ millions) for the fiscal years 2001 through 2010. Data for Nike’s fiscal year refer to the time period from June 1 through May 31. Assume

> The accompanying table shows a portion of the number of customers that frequent a restaurant on weekend days over the past 52 weeks. At the 5% significance level, can we conclude that the average number of customers that frequent the restaurant differs

> A statistics instructor wonders whether significant differences exist in her students’ final exam scores in her three different sections. She randomly selects the scores from 10 students in each section. A portion of the data is shown i

> An analyst has predicted the following returns for Stock A and Stock B in three possible states of the economy. a. What is the probability of a recession? b. Calculate the expected return for Stock A and Stock B. c. Calculate the expected return for a

> The following table shows the annual returns (in percent) for the Vanguard Energy Fund from 2005 through 2009. Year ……………………………………………………………………………………………… Energy 2005 ……………………………………………………………………………………………… 44.60 2006 ……………………………………………………………………………………………… 19.

> An economist examines the relationship between changes in short-term interest rates and long-term interest rates. He believes that changes in short-term rates are significant in explaining long-term interest rates. He estimates the model Dlong = Î&

> Do energy costs vary dramatically depending on where you live in the United States? Annual energy costs are collected from 25 households in four regions in the United States. A portion of the ANOVA table is shown. a. Complete the ANOVA table. Assume en

> The following output summarizes the results of an analysis of variance experiment in which the treatments were three different hybrid cars and the variable measured was the miles per gallon (mpg) obtained while driving the same route. Assume mpg is norma

> Consider the following competing hypotheses and accompanying sample data. Assume that the populations are normally distributed with equal variances. a. Calculate the value of the test statistic and the p-value. b. At the 5% significance level, can you

> The following values are drawn from a normal population. a. Calculate the point estimates for the population variance and the population standard deviation. b. Construct the 95% confidence interval for the population variance and the population standar

> The covariance between two random variables x and y is 100. The sample standard deviation for x is 10 and the sample standard deviation for y is 12.5. Calculate and interpret the correlation coefficient.

> Consider the following competing hypotheses and accompanying sample data drawn independently from normally distributed populations. Test whether the population means differ at the 5% significance level. Ho: H1 – 42 = 0 Hz#0 X1 = 57 X2 = 63 o1 = 11.

> In a simple linear regression based on 30 observations, it is found that b1 = 7.2 and se(b1) = 1.8. Consider the hypotheses: a. Calculate the value of the test statistic and the p-value. b. At the 5% significance level, what is the conclusion to the t

> The accompanying table shows a portion of the number of cases of car thefts for the 50 states during 2010. State ………………………………………………………………………………………………… Car Theft Alabama …………………………………………………………………………………………………… 658 Alaska …………………………………………………………………………………………

> Given the following information obtained from four normally distributed populations, construct an ANOVA table and perform an ANOVA test of mean differences at the 5% significance level. SST= 70.47; SSTR= 11.34; c= 4; n, = n2= n3= N4= 15

> Given the following information obtained from three normally distributed populations, construct an ANOVA table and perform an ANOVA test of mean differences at the 1% significance level. SSTR = 220.7; SSE = 2252.2; c = 3; n, = n2= n3= 8 %3D %3D %3D

> Find the value x for which: a. P(x2o 2 x) =0.005 b. P(Z2o 2 x) = 0.01 c. PlX20 < x) = 0.005 а. с. d. Plz2o < x) = 0.01

> Find the value x for which: a. Plx > x) = 0.025 b. Pl 2 x) = 0.05 c. P(X < x) = 0.025 d. P(X < x) = 0.05

> The accompanying table lists goodness-of-fit measures that were obtained when estimating the following two simple linear regression models: Which model provides a better fit for y? Justify your response with two goodness-of-fit measures. Model 1:

> Consider the following competing hypotheses and accompanying sample data. The two populations are known to be normally distributed. a. Implement the test at the 5% significance level under the assumption that the population variances are equal. b. Repe

> Consider the following data drawn independently from normally distributed populations: a. Construct the 95% confidence interval for the difference between the population means. Assume that the population variances are equal. b. Specify the competing hy

> Consider the following data drawn independently from normally distributed populations: a. Construct the 95% confidence interval for the difference between the population means. b. Specify the competing hypotheses in order to determine whether or not th

> Many parents have turned to St. John&acirc;&#128;&#153;s wort, an herbal remedy, to treat their children with attention deficit hyperactivity disorder (ADHD). The Journal of the American Medical Association (June 11, 2008) published an article that explo

> An economist wishes to summarize sample data from 26 metropolitan areas in the United States. The following table lists a portion of each area&acirc;&#128;&#153;s 2010&acirc;&#128;&#147;2011 median income (Income in $1,000s) as well as the monthly unempl