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1. Assume the following data...

1. Assume the following data were gathered by a manufacturer of a robotics component, in units of days of continuous use until the component fails. There are 60 measurements in this data set. Show a histogram of this data set with 10 bins of equal size, spanning the range from the data minimum to the data maximum.

142, 147, 127, 161, 145, 137, 122, 123, 141, 139, 139

135, 135, 130, 147, 118, 154, 133, 136, 129, 139, 131

143, 130, 160, 127, 127, 145, 144, 155, 128, 124,144

133, 136, 133, 151, 131, 133, 119, 122, 139, 128, 121

142, 136, 148, 136, 121, 131, 125, 120, 123, 145, 140

150, 136, 135, 133, 134

2. A university has been tracking the percentage of alumni giving to its annual fund each year for the past 10 years. The data is given here.

14%, 13%, 15%, 21%, 19%, 24%, 25%, 28%, 25%. 31%

Answer the following questions about this data.

a.what are its mean and median?

b.What is the procedure for using mean and median to determine whether the data is skewed, and if so, in what direction?

c.Apply the procedure you described to the mean and median computed in part a.

3. A nurse is considering going back to graduate school to earn a Ph.D. in biochemistry. One of the schools she visits tells her that the average time to

earn the degree she’s considering is 5.5 years. Show that this statement is not sufficiently precise by giving two different explanations of what it might

mean.

3. Assume you have a data set from a normally distributed random variable. Answer the

following questions about it.

a.Will the random variable be discrete, continuous, or neither? How do you

know?

b. Will the data be qualitative or quantitative? How do you know?

4. Under which of the following conditions would it be appropriate to use a Binomial

random variable? In each case, explain why your answer is correct.

a. A department will interview 10 candidates for a position, and call back for second interviews those who answer the interview questions to the satisfaction

of all the interviewers. They hope to call back at least 3, but past experience suggests an average of about 1 call back per 4 interviews.

b. A factory posts on the wall the number of days since its last safety infraction of injury. In the past year, the factory has had a safety infraction

or injury on 6 different days. The factory is interested in the n umber of days that can be expected to elapse without an injury.

c. Fifteen of a doctor’s patients have the same ailment. Studies have shown that about 86.5% of patients with this ailment respond to a certain drug. The

doctor prescribes the drug to all 15, but the number who will respond in this case is, of course, not known in advance.

5. The mean time for a racecar driver’s crew to perform a pit stop is 13.2 seconds, with a standard deviation of 0.9 seconds. To maintain his current lead, the driver needs a pit stop in 12.5 seconds or less. Assuming this random variable is normally distributed, what is the probability of the driver getting the pit stop in a short enough time to maintain is lead?

6. From a sample of size 175, the sample mean is x bar=54.37 and sample standard deviation is s= 7.07.

a. Construct a 95% confidence interval for the population mean and show your work.

b. Explain how your work in part a would have been different if the sample size had been only 12 instead.

7. A random sample from the population of registered voters in California is to be taken and then surveyed about an upcoming election. What sample size should be used to guarantee a sampling error of 3% or less when estimating p at the 95%confidence level?

8. A. Explain the two conditions required for a valid large-sample test of hypothesis for a mean

B. Explain the two different possible outcomes of a test of hypothesis

9. The following information pertains to Skandalis Company's production of one unit of

its manufactured product during the month of June:

Standard quantity of materials 10 pounds

Standard cost per pound $0.75

Standard direct labor hours 0.50

Standard wage rate per hour $10.00

Materials purchased 200,000 pounds

Cost of materials purchased $0.72 per pound

Materials Consumed for manufacture of 10,000 units 112,000 pounds

Actual direct labor hours required for 10,000 units 4,600

Actual direct labor cost per hour $10.20

The materials price variance is recognized when materials are purchased.

a. Compute the materials price and quantity variances.

b. Compute the labor rate and efficiency variances.

c. Indicate whether each of the above variances is favorable or unfavorable

10. Dye and Dye, Attorneys-at-Law, each bill 1,500 hours per year and receive pay of $100,000. Four paralegals work 2,000 hours each for the firm and receive annual pay of $32,500. Overhead of $396,000 is anticipated, of which $204,000 is attorney support and the rest is paralegal support.

Determine the overhead application rate under each of the following circumstances:

a. A simplified cost approach is used based on hours.

b. A simplified cost approach is used based on payroll dollars.

c. An activity-based cost approach is used. Attorney support is based on labor costs,

and paralegal support is based on hours worked

11.The following accounts are maintained by the Riverside Manufacturing Company in its general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. The materials account had a debit balance of $40,000 on November 1.

A summary of material transactions for November shows the following transactions:

(1) Materials acquired on account, $62,000

(2) Direct materials issued, $58,500

(3) Direct materials returned to storeroom, $1,200

(4) Indirect materials issued, $3,600

(5) Indirect materials returned to storeroom, $550

(6) Materials on hand were $200 less than the company's ledger balance.

a. Prepare journal entries to record these transactions.

b. Post the journal entries to T-accounts.

c. Determine the balance of the materials account on November 30.

12. Under a process cost system, why is it necessary to estimate the stage or degree of completion of work in process at the end of the accounting period?

13. An employee who manufactures goods for her employer earns $12 an hour for regular wages. He’s paid time and a half for all hours worked in excess of 40 hours per week. In a recent week, she worked 50 hours.

a. How much of her gross pay that week was direct labor?

b. How much was indirect labor?

14. A company has $80,000 in fixed costs and makes one product with a selling price of $20 per unit. If variable costs are $10 per unit, what is the break-even sales volume in units?

15. What are the advantages and disadvantages of a stable inventory policy for a company that has greatly fluctuating sales during the year?

16. What type of production process lends itself to process costing? Provide an example.

142, 147, 127, 161, 145, 137, 122, 123, 141, 139, 139

135, 135, 130, 147, 118, 154, 133, 136, 129, 139, 131

143, 130, 160, 127, 127, 145, 144, 155, 128, 124,144

133, 136, 133, 151, 131, 133, 119, 122, 139, 128, 121

142, 136, 148, 136, 121, 131, 125, 120, 123, 145, 140

150, 136, 135, 133, 134

2. A university has been tracking the percentage of alumni giving to its annual fund each year for the past 10 years. The data is given here.

14%, 13%, 15%, 21%, 19%, 24%, 25%, 28%, 25%. 31%

Answer the following questions about this data.

a.what are its mean and median?

b.What is the procedure for using mean and median to determine whether the data is skewed, and if so, in what direction?

c.Apply the procedure you described to the mean and median computed in part a.

3. A nurse is considering going back to graduate school to earn a Ph.D. in biochemistry. One of the schools she visits tells her that the average time to

earn the degree she’s considering is 5.5 years. Show that this statement is not sufficiently precise by giving two different explanations of what it might

mean.

3. Assume you have a data set from a normally distributed random variable. Answer the

following questions about it.

a.Will the random variable be discrete, continuous, or neither? How do you

know?

b. Will the data be qualitative or quantitative? How do you know?

4. Under which of the following conditions would it be appropriate to use a Binomial

random variable? In each case, explain why your answer is correct.

a. A department will interview 10 candidates for a position, and call back for second interviews those who answer the interview questions to the satisfaction

of all the interviewers. They hope to call back at least 3, but past experience suggests an average of about 1 call back per 4 interviews.

b. A factory posts on the wall the number of days since its last safety infraction of injury. In the past year, the factory has had a safety infraction

or injury on 6 different days. The factory is interested in the n umber of days that can be expected to elapse without an injury.

c. Fifteen of a doctor’s patients have the same ailment. Studies have shown that about 86.5% of patients with this ailment respond to a certain drug. The

doctor prescribes the drug to all 15, but the number who will respond in this case is, of course, not known in advance.

5. The mean time for a racecar driver’s crew to perform a pit stop is 13.2 seconds, with a standard deviation of 0.9 seconds. To maintain his current lead, the driver needs a pit stop in 12.5 seconds or less. Assuming this random variable is normally distributed, what is the probability of the driver getting the pit stop in a short enough time to maintain is lead?

6. From a sample of size 175, the sample mean is x bar=54.37 and sample standard deviation is s= 7.07.

a. Construct a 95% confidence interval for the population mean and show your work.

b. Explain how your work in part a would have been different if the sample size had been only 12 instead.

7. A random sample from the population of registered voters in California is to be taken and then surveyed about an upcoming election. What sample size should be used to guarantee a sampling error of 3% or less when estimating p at the 95%confidence level?

8. A. Explain the two conditions required for a valid large-sample test of hypothesis for a mean

B. Explain the two different possible outcomes of a test of hypothesis

9. The following information pertains to Skandalis Company's production of one unit of

its manufactured product during the month of June:

Standard quantity of materials 10 pounds

Standard cost per pound $0.75

Standard direct labor hours 0.50

Standard wage rate per hour $10.00

Materials purchased 200,000 pounds

Cost of materials purchased $0.72 per pound

Materials Consumed for manufacture of 10,000 units 112,000 pounds

Actual direct labor hours required for 10,000 units 4,600

Actual direct labor cost per hour $10.20

The materials price variance is recognized when materials are purchased.

a. Compute the materials price and quantity variances.

b. Compute the labor rate and efficiency variances.

c. Indicate whether each of the above variances is favorable or unfavorable

10. Dye and Dye, Attorneys-at-Law, each bill 1,500 hours per year and receive pay of $100,000. Four paralegals work 2,000 hours each for the firm and receive annual pay of $32,500. Overhead of $396,000 is anticipated, of which $204,000 is attorney support and the rest is paralegal support.

Determine the overhead application rate under each of the following circumstances:

a. A simplified cost approach is used based on hours.

b. A simplified cost approach is used based on payroll dollars.

c. An activity-based cost approach is used. Attorney support is based on labor costs,

and paralegal support is based on hours worked

11.The following accounts are maintained by the Riverside Manufacturing Company in its general ledger: Materials, Work in Process, Factory Overhead, and Accounts Payable. The materials account had a debit balance of $40,000 on November 1.

A summary of material transactions for November shows the following transactions:

(1) Materials acquired on account, $62,000

(2) Direct materials issued, $58,500

(3) Direct materials returned to storeroom, $1,200

(4) Indirect materials issued, $3,600

(5) Indirect materials returned to storeroom, $550

(6) Materials on hand were $200 less than the company's ledger balance.

a. Prepare journal entries to record these transactions.

b. Post the journal entries to T-accounts.

c. Determine the balance of the materials account on November 30.

12. Under a process cost system, why is it necessary to estimate the stage or degree of completion of work in process at the end of the accounting period?

13. An employee who manufactures goods for her employer earns $12 an hour for regular wages. He’s paid time and a half for all hours worked in excess of 40 hours per week. In a recent week, she worked 50 hours.

a. How much of her gross pay that week was direct labor?

b. How much was indirect labor?

14. A company has $80,000 in fixed costs and makes one product with a selling price of $20 per unit. If variable costs are $10 per unit, what is the break-even sales volume in units?

15. What are the advantages and disadvantages of a stable inventory policy for a company that has greatly fluctuating sales during the year?

16. What type of production process lends itself to process costing? Provide an example.

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