Requirement 1. compute the total budgeted manufacturing overhead cost for the upcoming year. (enter the rates to two decimal places.) zippy corporation total budgeted indirect manufacturing costs budgeted quantity of activity cost total budgeted activity cost allocation base allocation rate indirect cost materials handling 18,000 $4.00 $72,000 machine setups 40 375.00 15,000 insertion of parts 18,000 28.00 504,000 finishing 5,500 54.00 297,000 total budgeted indirect cost $888,000 requirement 2. compute the manufacturing overhead cost per wheel of each model using abc. (round the cost allocation base to three decimals and cost per wheel to the nearest cent.) zippy corporation abc indirect manufacturing cost per unit cost quantity of cost allocation allocated activity activity allocation rate base used by: cost per wheel standard deluxe standard deluxe materials handling $4.00 8 10 $32.00 $40.00 machine setup 375.00 .5 .5 187.5 187.5 insertion of parts 28.00 8 10 224.00 280.00 finishing 54.00 2.0 3.5 108.00 189.00 total abc allocated indirect cost 1114 1259

Miko willingly admits that she is not an accountant by training. she is concerned that her balance sheet might not be correct. she has provided you with the following additional information. 1. the boat actually belongs to miko, not to skysong, inc.. however, because she thinks she might take customers out on the boat occasionally, she decided to list it as an asset of the company. to be consistent, she also listed as a liability of the corporation her personal loan that she took out at the bank to buy the boat. 2. the inventory was originally purchased for $27,500, but due to a surge in demand miko now thinks she could sell it for $39,600. she thought it would be best to record it at $39,600. 3. included in the accounts receivable balance is $11,000 that miko loaned to her brother 5 years ago. miko included this in the receivables of skysong, inc. so she wouldn’t forget that her brother owes her money. (b) provide a corrected balance sheet for skysong, inc.. (hint: to get the balance sheet to balance, adjust stockholders’ equity.) (list assets in order of liquidity.)

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.