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You have recently accepted a position with Vitex, Inc., the manufacturer of a popular consumer product. During your first week on the job, the vice president has been favorably impressed with your work. She has been so impressed, in fact, that yesterday she called you into her office and asked you to attend the executive committee meeting this morning for the purpose of leading a discussion on the variances reported for the last period. Anxious to favorably impress the executive committee, you took the variances and supporting data home last night to study. On your way to work this morning, the papers were lying on the seat of your new, red convertible. As you were crossing a bridge on the highway, a sudden gust of wind caught the papers and blew them over the edge of the bridge and into the stream below. You managed to retrieve only one page, which contains the following information: Standard Cost Card Direct materials, 2.40 pounds at $16.60 per pound: $39.84 Direct labor, 1.00 direct labor-hour at $15.90 per direct labor-hour: $15.90 Variable manufacturing overhead, 1.00 direct labor-hour at $9.50 per direct labor-hour: $9.50 Total Standard Cost Variances Reported Price or Rate Quantity or Efficiency Direct materials: $756,960 $13,804 F $33,200 U Direct labor: $302,100 $4,000 U $15,900 U Variable manufacturing overhead: $180,500 $4,600 F $? U *Applied to Work in Process during the period. Entry obliterated. You recall that manufacturing overhead cost is applied to production on the basis of direct labor-hours and that all of the materials purchased during the period were used in production. Work in process inventories are insignificant and can be ignored. It is now 8:30 a.m. The executive committee meeting starts in just one hour; you realize that to avoid looking like a bungling fool you must somehow generate the necessary "backup" data for the variances before the meeting begins. Without backup data, it will be impossible to lead the discussion or answer any questions. 1. How many units were produced last period? 2. How many pounds of direct material were purchased and used in production? 3. What was the actual cost per pound of material? 4. How many actual direct labor-hours were worked during the period? 5. What was the actual rate paid per direct labor-hour? 6. How much actual variable manufacturing overhead cost was incurred during the period?
Adi S.
Charles Darwin set off with Captain Robert Fitzroy on the HMS Beagle on December 27, 1831. On September 7, 1835, they set off from Peru and reached the first of the Galapagos Islands on September 16th, Chatham Island. Darwin collected species of tortoise, mockingbirds, turtles, snakes, sea and land iguanas, and various other birds including the finches for which he is famous. On October 20th, his famous voyage came to an end as he set sail to Tahiti over 3,200 miles away. While visiting the Galapagos, Darwin discovered 13 unique kinds of finch, all of which are said to be descended from one species that may have been blown over from the mainland of South America during a windstorm over a million years ago. Darwin collected multiple species of finch from the Galapagos and began to see how diverse they were from island to island - their beak shape and function seemed to relate to the foods they ate depending on the environmental factors present on each island. Having studied and researched on the Galapagos Islands for a lengthy period of time, Darwin noticed many similarities among species with variations based on the mainland and various islands. The Galapagos tortoise, finches and land and marine iguanas, all helped lead him to believe that they had gradually evolved from common ancestors, which came from the mainland. He developed a process for the theory of evolution in which species survived which he called "natural selection." The species that successfully adapted to meet the changing requirements and needs of their natural habitat thrived and survived to reproduce, while those that failed to thrive and reproduce died off. Several individuals influenced Darwin's revelation or were influenced by his theory of natural selection. Darwin's Evolution Example: Most elephants had short trunks, but some had long ones. When food became scarce, those with long trunks could reach food in trees and were able to survive and reproduce, while those with short trunks died off-this led to elephants having long trunks. Thomas Huxley Huxley was at first against the idea of evolution as he believed that the world remained the same over time and our modern species could be found as fossils in the oldest rocks. However, he changed his beliefs and followed Darwin's theory of evolution by natural selection. In fact, he deemed "Darwin's Bulldog" because his work to help expand the acceptance of evolution among the public and scientists. He did not, however, think that evolution was always slow and gradual process and he made this known even while defending Darwin's stance. He believed evolution could occur in rapid jumps and sudden large - scale mutations. He came to write a very controversial book about primate and human link, claiming that humans had ape-like ancestors. Jean-Baptiste Lamarck Lamarck was an influence on Darwin as he was one of the first scientist to believe that species changed over time. He believed that evolution was part of a predetermined "plan." He created a theory of inheritance of acquired characteristics which states that if an organism changes during life in order to adapt to its environment, those changes were then passed to its offspring. He believed that change was made depending on what the organisms want or need. As the environment changed, species would too and as a result, they would never become extinct, instead they merely evolved into another species. Lamarck Evolution Example: Elephants used to have short trunks. When food became scarce, they stretched their trunks to reach food in the trees. Their offspring then inherited a long trunk. Darwin saw this differently. An animal's needs had nothing to do how they evolved. The change they went through within their lifetime did not affect the species as a whole because those characteristics could not be inherited by offspring. Offspring are born with many variations. Those born with traits best suited to their environment survived and reproduced while those without beneficial traits died off. Darwin did not see evolution as something that had a plan or path that has predetermined. Darwin eventually disagreed with nearly all of Lamarck's theories of evolution.
A corporation that operates five suppliers of athletic apparel in a region provides merchandise for a shoe company. The shoe company recently sought information from the five plants. One variable for which data were collected was the total money (in dollars) the company spent on medical support for its employees in the first three months of the year. Data on the number of employees at the plants are also shown below. Complete parts a and b. Data: Medical Employees $7,773 125 $14,808 404 $12,392 253 $6,708 105 $3,532 70 a. Compute the weighted mean medical payments for these five plants using the numbers of employees as the weights. The weighted mean is (Round to the nearest dollar as needed.) b. Explain why the shoe company would desire that a weighted average be computed in this situation rather than a simple numeric average. Choose one: A. The weighted average takes into account the variation in the data instead of only providing a measure of central tendency. B. The weighted average takes into account the numbers of employees and finds the average payment per employee instead of the average payment per plant. C. The weighted average takes into account the numbers of employees and is a more reasonable measure of the average payments than would be an unweighted average. D. The weighted average takes into account both the mean and the median of the data, instead of only providing the simpler measure of only the mean. Suppose there is an investigation to determine whether the increased availability of generic drugs, Internet drug purchases, and cost controls have reduced out-of-pocket drug expenses. As a part of the investigation, a random sample of 196 privately insured adults with incomes above 200% of the poverty level was taken, and their 2015 out-of-pocket medical expenses for prescription drugs were collected, with the accompanying results. Complete parts a through d below. Data: Out-of-pocket drug expenses: 194.41 136.96 162.24 176.32 200.17 119.67 143.12 207.93 203.87 133.41 130.58 210.51 190.33 122.18 136.56 156.45 157.67 159.04 164.71 208.16 168.37 212.32 107.39 133.32 159.02 192.13 182.53 214.17 174.39 178.02 128.79 189.64 176.45 183.48 202.75 200.58 130.76 146.03 158.67 167.53 165.36 187.54 157.71 164.54 188.46 167.79 156.16 165.08 107.41 147.31 196.23 195.64 148.38 91.23 177.58 176.62 183.72 112.44 168.95 199.48 195.76 211.33 182.66 157.94 207.39 174.48 168.66 163.37 140.25 177.92 175.43 160.58 176.22 164.44 182.13 187.58 150.24 153.33 166.99 186.74 154.48 167.52 174.61 196.28 168.19 214.84 173.71 177.07 130.51 153.72 164.03 95.74 142.49 146.62 139.51 146.15 127.06 170.59 128.97 147.54 183.87 177.13 241.82 202.58 195.15 199.04 206.04 170.04 140.18 205.94 130.19 176.93 184.91 184.88 79.59 177.91 225.58 157.68 141.13 159.35 165.54 194.64 166.51 96.99 173.94 152.84 182.29 220.51 169.72 110.62 113.24 154.11 174.16 166.29 187.12 188.31 155.55 154.63 121.82 158.55 222.46 166.56 170.06 175.02 177.94 182.64 182.44 147.89 147.78 205.43 152.77 160.53 161.71 203.91 161.16 113.97 153.52 189.55 134.75 141.89 175.57 180.14 168.85 153.63 184.32 218.86 172.28 168.43 199.88 175.48 177.67 132.45 125.91 163.79 107.55 174.03 157.84 178.81 196.84 184.04 144.13 150.19 134.11 209.53 173.05 160.83 115.11 168.77 167.14 173.99 181.75 139.87 163.56 206.95 202.45 201.77 a. Calculate the mean and median for the sample data. The mean is (Type an integer or decimal rounded to the nearest cent as needed.) The median is (Type an integer or decimal rounded to the nearest cent as needed.) b. Calculate the range, variance, standard deviation, and interquartile range for the sample data. The range is (Type an integer or decimal rounded to the nearest cent as needed.) The variance is (Type an integer or decimal rounded to two decimal places as needed.) The standard deviation is (Type an integer or decimal rounded to the nearest cent as needed.) The interquartile range is (Type an integer or decimal rounded to the nearest cent as needed.) d. Write a short report that describes out-of-pocket drug expenses for privately insured adults whose incomes are greater than 200% of the poverty level. Choose the correct answer below. A. Out-of-pocket drug expenses are well described by the mean and the standard deviation as there are no outliers. B. Most adults' out-of-pocket drug expenses are close to the median, but there is at least one outlier that creates a large range. C. Out-of-pocket drug expenses are well described by the mean and the standard deviation as the distribution of data is not roughly symmetrical. D. Nearly all adults' out-of-pocket drug expenses are within the interquartile range.
Sri K.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
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