A large costruction firm has 120 houses in various stages of completion. For estimation of he total dollar amount to be listed as inventory of construction in progress, a simple random ample of 12 of these houses is selected and accumulated costs determined on each. Assume the following costs were obtained for the 12 sample houses: 15500 16400 10200 8900 9800 14100 12600 6400 18000 18200 12200 7500 a) Estimate the mean accumulated cost per house and place a bound on the error of estimation. b) Detemine the sample size required to estimate the population mean with a bound on the error of estimation of 2500 Estimate the total agoun lated

A large costruction firm has 120 houses in various stages of completion. For estimation of he total dollar amount to be listed as inventory of construction in progress, a simple random ample of 12 of these houses is selected and accumulated costs determined on each. Assume the following costs were obtained for the 12 sample houses: 15500 16400 10200 8900 9800 14100 12600 6400 18000 18200 12200 7500 a) Estimate the mean accumulated cost per house and place a bound on the error of estimation. b) Detemine the sample size required to estimate the population mean with a bound on the error of estimation of 2500 Estimate the total agoun lated

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Identify the type of cost with reasons: 1.A company had paid 8,00,000 to a marketing research company to find expected demand of the newly developed product of the company 2.A company has invested 25,00,000 in a project. The company could have earned 3,00,000 by investing the amount in proper government securities. 3.Accountant of a cloth factory paid 25,000 for water which has been used for washing the clothes.
4. Develop a single equation to estimate total costs at various levels of activity. 5. Project the total costs if 3,500 rooms are sold.
sing the following data, apply the high-low method of cost analysis to the three cost data groups: Volume Alpha Beta Gamma 2,000 $6,600 $2,400 $8,000 6,000 $9,800 $7,000 $8,000 13,000 $13,000 $12,000 $8,000 20,000 $21,000 $24,000 $8,000 What cost behavior patterns are apparent for Beta? Select one: a. Fixed b. Variable c. Mixed d. Semi-fixed e. None of the above
Given the following information for a product: Direct labor hours: 0.25 hour/unit Direct labor costs: $20/hour Direct materials cost: S5/unit Overhead costs: 110% of direct labor Packaging and shipping: $2/unit Desired profit margin: 2096 of the total cost Suppose that a market survey has shown that the best competitor's selling price for the product is $19.50 per unit. After conducting a value engineering study, It was found that the material cost is high and another equal and less expensive material can be used to achieve the required target cost. What should the material cost per unit be to achieve the required target cost for the product?
Franklin Construction Company expects to build three new homes during a specific accounting period. The estimated direct materials and labor costs are as follows. Expected Costs Direct labor Direct materials Fringe Benefits: Home 1 2 3 Total Indirect Materials: Assume Franklin needs to allocate two major overhead costs ($67,200 of employee fringe benefits and $18,080 of Indirect materials costs) among the three jobs. Required Choose an appropriate cost driver for each of the overhead costs and determine the total cost of each house. Note: Round "Allocation rate" to 2 decimal places. Home 1 2 3 Total Expected Costs Direct labor Direct materials Fringe benefits Indirect materials Total cost Home 1 $ 61,000 107,000 The cost components to determine the total cost of each house: Home 1 Home 2 Allocation Rate x Weight of Base = Allocated Cost X $ 0 0 0 $ Home 2 $ 101,000 148,000 X X Allocation Rate x Weight of Base 0 X $ 0 = = = Home 3 $ 174,000 197,000 = = $ = Allocated Cost $ 0 0 $ $ 0…
Help solve all questions AXY LTD company is planning to use the economic order quantity model to determine the optimal order levels of raw materials. Material Z is consumed evenly over the year and the current usage is 120,000 units of a particular item in the year ahead. The item is purchased in boxes and each box containing 12 units of the material Z, at a price of RM252 per box. A safety inventory of 250 boxes is kept. The cost of placing and handling orders is estimated to be RM6,300, which is based cost incurred for similar orders that have already made. The cost of RM6,300 was for 30 orders. The inflation of 2 per cent should be added to the above ordering costs. Besides, the company estimates to be charged the transporation cost of RM15 per order. It should be assumed that ordering costs change in proportion to the number of orders place. Other costs which relate to material Z such as insurance, interest and space costs for a year, were calculated at 15 % of the purchase price.…
1. Top-down versus bottom-up estimates. pts. a. Describe the methods and uses of each of the approaches. 2. Compare the advantages and disadvantages of each of the approaches. 3. What are the three types of costs discussed in the text? Define them. 4. For a small project requiring 120 hours at $50/hr and having a direct overhead rate of 40%, calculate the direct cost (Exercise 1 in Chapter 5). To that add indirect costs (G&A) at 20% and then profit at 20% for a total project price. What are the estimated costs for: Design Programming In-house testing Which “approach to estimating” is this? What weaknesses are inherent in this approach? 5. Take another look at Exercise #5. Use Exercise Figure 5.1 on page 160. But now you are asked to do a bottom-up estimate based on the following data and compare it with the top-down estimate of $800,000. If confronted with these two estimates, what, if any, actions would you take? Deliverables Estimated Hours Rate:…
Tony uses EOQ logic to determine the order quantity for its various components and is planning its orders. The Annual consumption is 80,000 units, Cost to place one order is P1,200, Cost per unit is P 50 and carrying cost is 6% of Unit cost. Find EOQ, No. of order per year, Ordering Cost and Carrying Cost and Total Cost . Prepare a table of validation.
A manufacturing plant wishes to buy a new equipment so the purchasing department did some research on different types of this equipment. In the monthly meeting, the purchasing department presented a report about the two types of equipment that they have found. Pertinent data are as follows: Турe A Туре В First cost P250,000 P350,000 Annual operating cost 30,000 22,000 Annual labor cost 52,000 34,000 Insurance and property taxes 3% 3% Labor/Payroll taxes 4% 4% Estimated life 10 10 If the minimum required rate of return is 18%, 1. What is the annual worth of Type A? [ Select ] 2. What is the annual worth of Type B? [Select ] 3. Which machine should be selected?[ Select ]
Identify the type of cost with reference to marginal costing principles: 1.A company had paid P100,000 to a marketing research company to find expected demand of the newly developed product of the company 2.A company has invested P45,00,000 in a project. The company could have earned 6,00,000 by investing the amount in proper government securities. 3.Accountant of a cloth factory paid P115,000 for water which has been used for washing the clothes.
Gable Company uses three activity pools. Each pool has a cost driver. Information for Gable Company follows: Total Cost of Pool $ 454,960 100,000 72,720 Estimated Cost Driver 96,800 10,000 505 Activity Pools Machining Designing costs Setup costs Suppose that Gable Company manufactures three products, A, B, and C. Information about these products follows: Product A Product B 38,000 4,000 40 Number of machine hours Number of design hours Number of batches Cost Driver Number of machine hours Number of design hours Number of batches Product A Product B Product C Total Overhead Assigned 48,000 2,200 170 Required: Using activity rates, determine the amount of overhead assigned to each product. Note: Do not round intermediate calculations. Round the final answer to nearest whole number. Product C 10,800 3,800 295
The types of costs: Direct fixed cost, contribution margin, Gross margin, step variable, Indirect fixed cost, variable cost and Initial investment.

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