Brent Custom Products pays 7.6% annual interest on one-half of its $3,000,000 annual inventory value. It also pays 0.65 % personal property tax on the total value of inventory . Other carrying costs include$26,000 insurance , $51,000 in labor costs, and$19,000 in overhead costs. What is the carrying cost per $1 of annual inventory , to the nearest tenth of a cent?

A company finds that its total costs are related to the amount spent on training programs by $T(x)=\frac{1000+60 x}{4 x+5}$, where T(x) is costs in thousands of dollars when x hundred dollars are spent on training. Find and interpret T'(x) if the following amounts are spent on training. a. $900. b.$1900. c. Are costs per dollar spent on training always increasing or decreasing?

Smythe Co. makes furniture. The following data are taken from its production plans for the year.

Direct labor costs                      $5,870,000 
Hazardous waste disposal costs             630,000

Required

1. Determine the hazardous waste disposal cost per unit for chairs and for tables if costs are assigned using a single plantwide overhead rate based on direct labor hours.
2. Determine hazardous waste disposal costs per unit for chairs and for tables if costs are assigned based on the number of pounds disposed of.

A company that manufactures compact discs has fixed monthly overhead costs of $\$ 60,000$. Each disc costs $\$ 0.18$ to produce and sells for $\$ 0.30$.

b. Write the revenue function, $R$, from the sale of $x$ discs per month.

Which of the following would be true for a service company?

• a. ABC helps the company make more informed decisions about services.
• b. Service companies use only a few activities, so a plantwide overhead allocation is always appropriate.
• c. Most of the company's costs are for direct materials and direct labor. Indirect costs are a small proportion of total costs.
• d. All of the above are true.

Identify the error in the stated conclusion.

Given: There is a linear correlation between state average commuting times and state average commuting costs. Conclusion: There is a linear correlation between individual commuting times and individual commuting costs.

Room and board costs for selected schools are summarized in this distribution.

Find the approximate percentile rank of each of the following costs. a. 550024th b. 720067th c. 650048th d. 830088th

Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate whether the costs should be expensed or capitalized (meaning they are included in the cost of the plant assets on the balance sheet). (2) For costs that should be capitalized, indicate in which category of plant assets (Equipment, Building, or Land) the related costs should be recorded on the balance sheet.

1. Wages paid to train employees to use new equipment.
2. Invoice cost paid for new equipment.
3. Early payment discount taken on the purchase of new equipment.
4. Realtor commissions incurred on land purchased.
5. Property taxes on land incurred a year after the land was purchased.
6. Costs of oil for the truck used to deliver new equipment.
7. Costs to lay foundation for a new building.
8. Insurance on a new building during its construction.

A delivery service is considering the purchase of vans. The model SE costs $16,000 with an expected annual operating–maintenance cost of$2700. The model LE costs $20,000 with an expected annual operating–maintenance cost of$2400. The company needs at least nine vans and has $160,000 available for purchase. How many of each should it purchase to minimize the expected operating–maintenance costs?

Davis Kitchen Supply makes stoves for commercial kitchens. The costs to manufacture and market the stoves at the company’s normal volume of 6,000 units per month are shown in the following table:

Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of$370 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself.

Required
Assume the same facts as in the previous requirement except that the idle facilities would be used to produce 1,600 modifi ed stoves per month for use in extreme climates. These modifi ed stoves could be sold for $450 each, while the costs of production would be$275 per unit variable manufacturing expense. Variable marketing costs would be $50 per unit. Fixed marketing and manufacturing costs would be unchanged whether the original 6,000 regular stoves were manufactured or the mix of 4,000 regular stoves plus 1,600 modifi ed stoves were produced. Should the proposal be accepted for a price of$215 per unit to the outside contractor?

Consider the following pairs of loan options for a $\$ 120,000$ mortgage. Calculate the monthly payment and total closing costs for each option. Explain which option you would choose and why.

Choice $1$: $30$-year fixed rate at $4 \%$ with closing costs of $\$ 1200$ and no points

Choice $2$: $30$-year fixed rate at $3.5 \%$ with closing costs of $\$ 1200$ and $2$ points

The force exerted on a car by a prototype crash barrier as the barrier crushes is $F=-\left(120 s+40 s^3\right) \mathrm{lb}$, where $s$ is the distance in feet from the initial contact. The effective length of the barrier is $18 \mathrm{ft}$. How fast can a 5000-lb car be moving and be brought to rest within the effective length of the barrier?

Consider the following pairs of loan options for a $\$ 120,000$ mortgage. Calculate the monthly payment and total closing costs for each option. Explain which option you would choose and why.

Choice $1$: $30$-year fixed rate at $3.5 \%$ with closing costs of $\$ 1000$ and no points

Choice $2$: $30$-year fixed rate at $3 \%$ with closing costs of $\$ 1500$ and $4$ points

A tea mixture was made from $30 \mathrm{~lb}$ of tea that costs $\$ 6.00$ per pound and $70 \mathrm{~lb}$ of tea that costs $\$ 3.20$ per pound. Find the cost per pound of the tea mixture.