Question: Bank Management Printers, Inc., produces luxury

> An engineer wants to determine whether the average strength of plywood boards (in pounds per square inch, psi) differs depending on the type of glue used. For three types of glue, she measures the strength of 20 plywood boards. A portion of the data is s

> A capital asset pricing model (CAPM) for Johnson & Johnson (J&J) was discussed in Example 15.3. The model uses the risk-adjusted stock return R − Rf for J&J as the response variable and the risk-adjusted market return RM − Rf as the explanatory variable.

> You have $400,000 invested in a well-diversified portfolio. You inherit a house that is presently worth $200,000. Consider the summary measures in the following table: The correlation coefficient between your portfolio and the house is 0.38. a. What is

> The manager of an SAT review program wonders whether average SAT scores differ depending on the ethnicity of the test taker. Thirty test scores for four ethnicities are collected. A portion of the data is shown in the accompanying table. At the 5% sign

> An analyst estimates the sales of a firm as a function of its advertising expenditures using the model: Sales = β0 + β1Advertising + ε. Using 20 observations, he finds that SSR = 199.93 and SST = 240.92. a. What proportion of the sample variation in sal

> Consider the data on salary (in $) and work experience (in years) of 100 employees in a marketing firm. Estimate the model: Salary = β0 + β1Experience + ε. a. Explain why you would be concerned about changing variability in this application. b. Use a r

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

> Consider the results of a survey where students were asked about their GPA and also to break down their typical 24-hour day into study, leisure (including work), and sleep. Consider the model GPA = β0 + β1Study + β2Leisure + β3Sleep + ε. a. What is wrong

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

> Numerous studies have shown that watching too much television hurts school grades. Others have argued that television is not necessarily a bad thing for children (Mail Online, July 18, 2009). Like books and stories, television not only entertains, it als

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

> Consider the following competing hypotheses and accompanying sample data. a. Calculate the value of the test statistic. b. Find the p-value. c. At the 5% significance level, what is the conclusion to the test? Can you conclude that the difference betwe

> Consider the following competing hypotheses and accompanying sample data. a. Calculate the value of the test statistic. b. Find the p-value. c. At the 5% significance level, what is the conclusion to the test? Do the population proportions differ?

> A pension fund manager is considering three mutual funds for investment. The first one is a stock fund, the second is a bond fund, and the third is a money market fund. The money market fund yields a risk-free return of 4%. The inputs for the risky funds

> Consider the following competing hypotheses and accompanying sample data. a. Calculate the value of the test statistic. b. Find the p-value. c. At the 5% significance level, what is the conclusion to the test? Do the population proportions differ?

> Consider the following competing hypotheses and accompanying sample data. a. Calculate the value of the test statistic. b. Find the p-value. c. At the 5% significance level, what is the conclusion to the test? Is p1 less than p2? Ho: Pi – P2 2 0 Hạ

> Given x1 = 50, n1 = 200, x2 = 70, n2 = 250, construct the 95% confidence interval for the difference between the population proportions. Is there a difference between the population proportions at the 5% significance level? Explain.

> Consider the following sample data drawn independently from normally distributed populations with unequal population variances. Sample 1 ……………………………………………………………………………………… Sample 2 88 …………………………………………………………………………………………………………. 98 110 ………………………………………………………

> The covariance between two random variables x and y is −250. The sample standard deviation for x is 40 and the sample standard deviation for y is 50. Calculate and interpret the correlation coefficient.

> The following table lists a portion of Major League Baseball’s (MLB’s) leading pitchers, each pitcher’s salary (In $ millions), and earned run average (ERA) for 2008. a. Estimate the model: Salary =

> The consumption function, first developed by John Maynard Keynes, captures one of the key relationships in economics. It expresses consumption as a function of disposable income, where disposable income is income after taxes. The accompanying table shows

> 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

> The accompanying table shows a portion of the scores that 32 students obtained on the final and the midterm in a course in statistics. Final …………………………………………………………………………………………………… Midterm 86 ………………………………………………………………………………………………………………… 78 94 ………………………………

> The accompanying table shows a portion of the average price of gas (in $ per gallon) for the 50 states during April 2012. State ………………………………………………………………………………………………… Price Alabama ……………………………………………………………………………………………….. 4.36 Alaska …………………………………………………………

> The accompanying table shows a portion of data that refers to the property taxes owed by a homeowner (in $) and the size of the home (in square feet) in an affluent suburb 30 miles outside New York City. Property …………………………………………………………………………………………... Ta

> Construct the 90% interval estimate for the ratio of the population variances using the following results from two independently drawn samples from normally distributed populations. Sample 1: x1 = 157, s = 23.2, and n = 9 Sample 2: x2 = 148, s = 19.

> Use the F table to find the following probabilities. F table: a. P (F (10,8) ≥ 3.35) b. P (F (10,8) c. P (F (10,8) ≥ 4.30) d. P (F (10,8) dfi df2 Area in Upper Tail, a 6 7 8 0.10 3.05 3.01 2.98 0.05 4.28 4.21 4.15

> Consider the following competing hypotheses and accompanying results from a matched pairs sample: a. Calculate the value of the test statistic and the p-value, assuming that the sample difference is normally distributed. b. Use the 1% significance leve

> Consider the following competing hypotheses and accompanying results from a matched pairs sample: a. Calculate the value of the test statistic and the p-value, assuming that the sample difference is normally distributed. b. At the 5% significance level

> The following table contains information on matched sample values whose differences are normally distributed. a. Construct the 95% confidence interval for the mean difference μD. b. Specify the competing hypotheses in order to test whethe

> In a simple linear regression, the following sample regression equation is obtained: a. Predict y if x equals 10. b. What happens to this prediction if x doubles in value to 20? ŷ = 15 + 2.5x.

> The accompanying table shows a portion of the number of cases of crime related to gambling (Gambling) and offenses against the family and children (Family Abuse) for the 50 states in the United States during 2010. a. Construct a boxplot for gambling an

> Go to the U.S. Census Bureau website at www.census.gov/ and extract the most recent median household income for Alabama, Arizona, California, Florida, Georgia, Indiana, Iowa, Maine, Massachusetts, Minnesota, Mississippi, New Mexico, North Dakota, and Was

> An article in The Wall Street Journal (July 11, 2008) outlined a number of reasons as to why the 16 teams in Major League Baseball’s National League (NL) are inferior to the 14 teams in the American League (AL). One reason for the imbal

> The French Bread Company also allocates fixed manufacturing overhead to products on the basis of standard direct manufacturing labor-hours. For 2012, fixed manufacturing overhead was budgeted at $4.00 per direct manufacturing labor-hour. Actual fixed m

> The French Bread Company bakes baguettes for distribution to upscale grocery stores. The company has two direct-cost categories: direct materials and direct manufacturing labor. Variable manufacturing overhead is allocated to products on the basis of sta

> Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor-hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2012 are budgeted, $62,400, and actual, $63,916. Required: 1. C

> Esquire Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead

> Rhaden Company produces sweat-resistant headbands for joggers. Information pertaining to Rhaden’s operations for May 2011 follows: Required: 1. Compute the sales volume variance for May 2011. 2. Compute the market-share and market-siz

> Suppose the static budget was for 2,500 units of output. Actual output was 2,000 units. The variances are shown in the following report: Required: What are the price, efficiency, and sales-volume variances for direct materials and direct manufacturing

> Prepare journal entries and post them to T-accounts for all transactions in Exercise 7-26, including requirement 2. Summarize how these journal entries differ from the normal-costing entries described in Chapter 4, pages 112–114. Data

> Dunn, Inc., is a privately held furniture manufacturer. For August 2012, Dunn had the following standards for one of its products, a wicker chair: The following data were compiled regarding actual performance : actual output units (chairs) produced, 2,

> The Monroe Corporation sets monthly standard costs using a continuous-improvement approach. In January 2012, the standard direct material cost is $45 per unit and the standard direct manufacturing labor cost is $15 per unit. Due to more efficient operati

> The Monroe Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: The number of finished units budgeted for January 2012 was 10,000; 9,850 units were actually produce

> Budgets meet the cost-benefit test. They force managers to act differently.” Do you agree? Explain.

> GloriaDee, Inc., designs and manufactures T-shirts. It sells its T-shirts to brand-name clothes retailers in lots of one dozen. GloriaDee’s May 2011 static budget and actual results for direct inputs are as follows: GloriaDee has a po

> .Peterson Foods manufactures pumpkin scones. For January 2012, it budgeted to purchase and use 15,000 pounds of pumpkin at $0.89 a pound. Actual purchases and usage for January 2012 were 16,000 pounds at $0.82 a pound. Peterson budgeted for 60,000 pumpki

> Marron, Inc., produces the basic fillings used in many popular frozen desserts and treats—vanilla and chocolate ice creams, puddings, meringues, and fudge. Marron uses standard costing and carries over no inventory from one month to the

> The Clarkson Company produces engine parts for car manufacturers. A new accountant intern at Clarkson has accidentally deleted the calculations on the company’s variance analysis calculations for the year ended December 31, 2012. The fo

> Connor Company’s budgeted prices for direct materials, direct manufacturing labor, and direct marketing (distribution) labor per attaché case are $40, $8, and $12, respectively. The president is pleased with the following p

> Brabham Enterprises manufactures tires for the Formula I motor racing circuit. For August 2012, it budgeted to manufacture and sell 3,000 tires at a variable cost of $74 per tire and total fixed costs of $54,000. The budgeted selling price was $110 per t

> Game Guys is a retail store selling video games. Sales are uniform for most of the year, but pick up in June and December, both because new releases come out and because games are purchased in anticipation of summer or winter holidays. Game Guys also sel

> Consider each of the following independent situations for Anderson Forklifts. Anderson manufactures and sells forklifts. The company also contracts to service both its own and other brands of forklifts. Anderson has a manufacturing plant, a supply wareho

> Family Supermarkets (FS) has a kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2011. Each successive month, the budgeted cost-driver rate decreases by 0.4% relative to the preceding month. So, for example, F

> As a new controller ,reply to this comment by a plant manager: “As I see it, our accountants may be needed to keep records for shareholders and Uncle Sam, but I don’t want them sticking their noses in my day-to-day operations. I do the best I know how. N

> The Chelsea store of Family Supermarket (FS), a chain of small neighborhood grocery stores, is preparing its activity-based budget for January 2011. FS has three product categories: soft drinks, fresh produce, and packaged food. The following table shows

> Roletter Company makes and sells artistic frames for pictures of weddings, graduations, and other special events. Bob Anderson, the controller, is responsible for preparing Roletter’s master budget and has accumulated the following info

> The Suzuki Co. in Japan has a division that manufactures two-wheel motorcycles. Its budgeted sales for Model G in 2013 is 900,000 units. Suzuki’s target ending inventory is 80,000 units, and its beginning inventory is 100,000 units. The company’s budgete

> Xerxes Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. One rug is budgeted to use 36skeins of wool at a cost of $2 per skein and 0.8 gallons of dye at a cost of $6 per gallon. All other materials are indirect. At the

> Purity, Inc., bottles and distributes mineral water from the company’s natural springs in northern Oregon. Purity markets two products: twelve-ounce disposable plastic bottles and four-gallon reusable plastic containers. Required: 1. For 2012, Purity ma

> The Mahoney Company has prepared a sales budget of 45,000 finished units for a three-month period. The company has an inventory of 16,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 18,000 units at the end

> Inglenook Co. produces wine. The company expects to produce 2,500,000two-liter bottles of Chablis in 2012. Inglenook purchases empty glass bottles from an outside vendor. Its target ending inventory of such bottles is 80,000; its beginning inventory is 5

> The Mendez Company expects sales in 2012 of 200,000 units of serving trays. Mendez’s beginning inventory for 2012 is 15,000 trays and its target ending inventory is 25,000trays. Compute the number of trays budgeted for production in 2012.

> In 2011, Rouse & Sons, a small environmental-testing firm, performed 12,200 radon tests for $290 each and 16,400 lead tests for $240 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 10% next y

> National Savings Bank (NSB) is examining the profitability of its Premier Account, a combined savings and checking account. Depositors receive a 7% annual interest rate on their average deposit. NSB earns an interest rate spread of 3% (the difference bet

> A given cost may be allocated for one or more purposes. List four purposes.

> The job costing system at Smith’s Custom Framing has five indirect cost pools (purchasing, material handling, machine maintenance, product inspection, and packaging). The company is in the process of bidding on two jobs; Job 215, an ord

> Idaho Potatoes (IP) operates at capacity and processes potatoes into potato cuts at its highly automated Pocatello plant. It sells potatoes to the retail consumer market and to the institutional market, which includes hospitals, cafeterias, and universit

> Ramirez Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Ramirez commented, “We apply ABC to determine product-line profitability. The same ideas apply to customer profitability

> Family Supermarkets (FS) operates at capacity and decides to apply ABC analysis to three product lines: baked goods, milk and fruit juice, and frozen foods. It identifies four activities and their activity cost rates as follows: The revenues, cost of g

> Open Doors, Inc., produces two types of doors, interior and exterior. The company’s simple costing system has two direct cost categories (materials and labor) and one indirect cost pool. The simple costing system allocates indirect cost

> Quikprint Corporation owns a small printing press that prints leaflets, brochures, and advertising materials. Quikprint classifies its various printing jobs as standard jobs or special jobs. Quikprint’s simple job-costing system has two

> Parker Company produces mathematical and financial calculators and operates at capacity. Data related to the two products are presented here: Total manufacturing overhead costs are as follows: Required: 1. Choose a cost driver for each overhead cost

> Tarquin’s Trophies makes trophies and plaques and operates at capacity. Tarquin does large custom orders, such as the participant trophies for the Mishawaka Little League. The controller has asked you to compare plant-wide, department,

> Automotive Products (AP) designs and produces automotive parts. In 2011, actual variable manufacturing overhead is $308,600. AP’s simple costing system allocates variable manufacturing overhead to its three customers based on machine-ho

> The Walliston Group (WG) provides tax advice to multinational firms. WG charges clients for (a) direct professional time (at an hourly rate) and (b) support services (at 30% of the direct professional costs billed). The three professionals in WG and thei

> Describe two ways in which a house construction company may use job-cost information.

> Hamilton, Inc., manufactures boom boxes (music systems with radio, cassette, and compact disc players) for several well-known companies. The boom boxes differ significantly in their complexity and their manufacturing batch sizes. The following costs were

> The Ride-On-Wave Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2011: Inventory balances on December 31, 2011

> Braden Brothers, Inc., is an architecture firm specializing in high-rise buildings. Its job-costing system has a single direct-cost category (architectural labor) and a single indirect-cost pool, which contains all costs of supporting the office. Support

> Job costing; actual, normal, and variation from normal costing. Chico & Partners, a Quebec-based public accounting partnership, specializes in audit services. Its job-costing system has a single direct-cost category (professional labor) and a single

> Rafael Company produces pipes for concert quality organs. Each job is unique. In April 2011, it completed all outstanding orders, and then, in May 2011, it worked on only two jobs, M1 and M2: Direct manufacturing labor is paid at the rate of $26 per ho

> Donnell Transport assembles prestige manufactured homes. Its job costing system has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost pool (manufacturing overhead allocated at a budgeted $30 per machine-ho

> What is broad averaging and what consequences can it have on costs?

> Define cost pool, cost tracing, cost allocation, and cost-allocation base.

> Management accounting should not fit the straitjacket of financial accounting.” Explain and give an example.

> How does management accounting differ from financial accounting?

> Match each of the following items with one or more of the denominator-level capacity concepts by putting the appropriate letter(s) by each item: a. Theoretical capacity b. Practical capacity c. Normal capacity utilization d. Master-budget capacity utiliz

> Name the four areas in which standards of ethical conduct exist for management accountants in the United States. What organization sets forth these standards?

> ABC systems only apply to manufacturing companies.” Do you agree? Explain

> How can the extent of price discounting be tracked on a customer-by-customer basis?

> Explain how the direct materials mix and yield variances provide additional information about the direct materials efficiency variance.

> How can the sales-quantity variance be decomposed further?

> The University of Chicago Press is wholly owned by the university. It performs the bulk of its work for other university departments, which pay as though the press were an outside business enterprise. The press also publishes and maintains a stock of boo

> How can the sales-volume variance be decomposed further to obtain useful information?

> Eric Johnson was recently promoted to Controller of Research and Development (R&D) for Pharma Cor, a Fortune 500 pharmaceutical company, which manufactures prescription drugs and nutritional supplements. The company’s total R&D cost for 2012 was expected

> George Perez is the controller at Allied Electronics, a manufacturer of devices for the computer industry. He is being considered for a promotion to chief financial officer. Required: 1. In this table, indicate which executive is primarily responsible f

> Burst, Inc., cans peaches for sale to food distributors. All costs are classified as either manufacturing or marketing. Burst prepares monthly budgets. The March 2012 budgeted absorption-costing income statement is as follows: Monthly costs are classif

> A series of independent situations in which a firm is about to make a strategic decision follow. Decisions: a. Roger Phones is about to decide whether to launch production and sale of a cell phone with standard features. b. Computer Magic is trying to de

> WebNews.com offers its subscribers several services, such as an annotated TV guide and local-area information on weather, restaurants, and movie theaters. Its main revenue sources are fees for banner advertisements and fees from subscribers. Recent data