Oriole Professionals, a management consulting firm, specializes in strategic planning for financial institutions. Mark Martin andGeorge Garcia, partners in the firm, are assembling a new strategic planning model for clients to use. The model is designed to be usedon most personal computers and replaces a rather lengthy manual model currently marketed by the firm. To market the new model,Mark and George will need to provide clients with an estimate of the number of labour hours and the computer time needed tooperate the model. The model is currently being test-marketed at five small financial institutions. These financial institutions are listedbelow, along with the number of combined computer/labour hours used by each institution to run the model once:Financial InstitutionsCanadian NationalFirst FundsFinancial FederalPacific CoastLakeview SavingsTotalAverageComputer/LabourHours Required29.0052.0046.0035.0035.00197.0039.40Any company that purchases the new model will need to purchase user manuals to access and operate the system. Also required arespecialized computer forms that are sold only by Oriole Professionals. User manuals will be sold to clients in cases of 24, at a cost of$372 per case. One manual must be used each time the model is run because each manual includes a non-reusable computer passwordfor operating the system. The specialized computer forms are sold in packages of 290 at a cost of $58 per package. One application ofthe model requires the use of 50 forms. This amount includes two forms that are generally wasted in each application due to printeralignment errors. The overall cost of the strategic planning model to user clients is $13,900. Most clients will use the model four timeseach year. Any company that purchases the new model will need to purchase user manuals to access and operate the system. Also required arespecialized computer forms that are sold only by Oriole Professionals. User manuals will be sold to clients in cases of 24, at a cost of$372 per case. One manual must be used each time the model is run because each manual includes a non-reusable computer passwordfor operating the system. The specialized computer forms are sold in packages of 290 at a cost of $58 per package. One application ofthe model requires the use of 50 forms. This amount includes two forms that are generally wasted in each application due to printeralignment errors. The overall cost of the strategic planning model to user clients is $13,900. Most clients will use the model four timeseach year.Oriole Professionals must provide its clients with estimates of ongoing costs that are incurred in operating the new strategic planningmodel. They would like to provide this information in the form of standard costs.(d) Determine the standard materials cost associated with the user manuals and computer forms for each application of the strategicplanning model. (Round answers to 2 decimal places, e.g. 12.25.)User manualsComputer formsTotal cost/application/application/application

Planning is the basic function of management. Planning is the process of deciding in advance what is…

Answered: Oriole Professionals, a management…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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