Apples & Oranges Inc. is trying to become more efficient in shipping goods. It is experimenting with two new shipping procedure initiatives aimed at achieving this strategic objective. The company has provided the following data regarding the two procedures after one month of implementation: Shipping Procedure A Shipping Procedure B Number of shipping errors 105 132 Hours from ordered shipped 16.3 19.2 Shipping time (hours from shipped delivered) 8.7 8.5 Pounds of goods shipped 860,000 797,000 Number of shipments 306 315 a. Compute the following performance metrics for each program: (1) Average number of shipping errors per shipment, rounded to three decimal places. Procedure A: error per shipment Procedure B: error per shipment (2) Hours from ordered to delivered, rounded to one decimal place. Procedure A: hours from ordered to delivered Procedure B: hours from ordered to delivered (3) Average pounds of goods per shipment, rounded to two decimal places. Procedure A: Ibs. of goods per shipment Procedure B: Ibs. of goods per shipment

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Oaklands Manufacturing LtdOaklands Manufacturing Ltd. produces a health drink which it sells in health shops and gyms across the country. The business has been doing well and an examination of its results for the month of July showed that it had produced and sold 500 more bottles of the drink than the expected 4,000 units of Product A during July. Despite the increased number of bottles produced the business is pleased to find that its manufacturing costs have actually decreased overall, and management are keen to identify the individual variances to see where savings were made, or where costs increased.The following are the actual results for July as produced by the management accountant. Materials (4,200 litres drink mix) Direct employee labour (15,000 hours) Variable overhead based on labour hrs Fixed overheadsTotal actual manufacturing cost£37,800 63,000 79,500 69,000249,300   The company never carries stocks of materials, finished goods, or work-in-progress.The following was the…

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A quality control activity analysis indicated the following four activity costs of a hotel. Verifying credit card information $486,000 Customer service training 364,500 Discounting room rates due to poor customer service 243,000 Correcting charges to customer invoices 121,500 Total $1,215,000 Sales are $8,100,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Cost of Quality Report Quality Cost Percent of Quality Cost Percent of Total Quality Cost Classification Total Sales $ Prevention Appraisal Internal failure External failure Totals % 100 % % %

Millard Corporation is a wholesale distributor of office products. It purchases office products from manufacturers and distributes them in the West, Central, and East regions. Each of these regions is about the same size and each has its own manager and sales staff. The company has been experiencing losses for many months. In an effort to improve performance, management has requested that the monthly income statement be segmented by sales region. The company's first effort at preparing a segmented income statement for May is given below. Sales Regional expenses (traceable): Cost of goods sold Advertising Salaries Utilities Depreciation Shipping expense Total regional expenses Regional income (loss) before corporate expenses Corporate expenses: Advertising (general) General administrative expense Total corporate expenses Net operating income (loss) Variable expenses: Total variable expenses Traceable fixed expenses: Total traceable fixed expenses Common fixed expenses: Total common…

Blossom Decor sells home decor items through three distribution channels-retail stores, the Internet, and catalog sales. Each distribution channel is evaluated as an investment center. Selected results from the latest year are as follows: Sales revenue Variable expenses Direct fixed expenses Average assets Required rate of return (a) Retail Online Catalog $ $ Retail Stores Internet $ $10,120,000 4,070,000 4,570,000 8,070,000 12% $4,070,000 Residual Income. 1,620,000 1,120,000 4,070,000 12% Calculate the current residual income for each distribution channel. (If the residual income is a loss then enter with a negative sign preceding the number, e.g. -5,125 or parenthesis, e.g. (5,125).) Catalog Sales $3,400,000 1,920,000 1,320,000 1,610,000 12%

Each day, a FedEx competitor processes approximately 50,000 shipments. Suppose that they use the same Service Quality Index as FedEx and identified the following numbers of errors during a 5-day week (see the "FedEx: Measuring Service Performance" box). These values are hypothetical and do not reflect any real company’s actual performance. Description Weight Number of Errors Complaints reopened 3 130 Damaged packages 10 19 International 1 107 Invoice adjustments 1 282 Late pickup stops 3 200 Lost packages 10 3 Missed proof of delivery 1 28 Right date late 1 751 Traces 3 111 Wrong day late 5 16 Compute the Service Quality Indicator by finding the weighted sum of errors as a percentage of total shipments. Do not round intermediate calculations. Round your answer to three decimal places. Service Quality Indicator (SQI):   %

Carlos Cavalas, the manager of Echo Products’ Brazilian Division, is trying to set the production schedule for the last quarter of the year. The Brazilian Division had planned to sell 3,600 units during the year, but by September 30 only the following activity had been reported:     Units Inventory, January 1 0 Production 2,400 Sales 2,000 Inventory, September 30 400     The division can rent warehouse space to store up to 1,000 units. The minimum inventory level that the division should carry is 50 units. Mr. Cavalas is aware that production must be at least 200 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 1,500 units per quarter.   Demand has been soft, and the sales forecast for the last quarter is only 600 units. Due to the nature of the division’s operations, fixed manufacturing overhead is a major element of product cost.   Required: 1a. Assume that the division is using variable costing. How many units should be…