The budget director of Regal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month

The budget director of Regal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for August 2010 is summarized as follows:
a. Estimated sales of King and Prince chairs for August by sales territory:
Northern Domestic:
King.........................5,500 units at $750 per unit
Prince......................6,900 units at $520 per unit

Southern Domestic:
King.........................3,200 units at $690 per unit
Prince......................4,000 units at $580 per unit

International:
King........................1,450 units at $780 per unit
Prince......................900 units at $600 per unit

b. Estimated inventories at August 1:
Direct materials:
Finished Products
Fabric................4,500 sq. yds
King.....................950units
Wood.................6,000 lineal ft.
Prince..................280units
Filler...................2,800 cu, ft
Springs..............6,700 units

c. Desired inventories at August 31:
Direct Materials:
Finished Products:
Fabric..................4300 sq yds
King.............800units
Wood..................6,200 lineal ft.
Prince...........400units
Filler....................3,100 cu. ft
Springs................7,500 units

d. Direct materials used in production:
In manufacture of King:
Fabric..................5.0 sq. yds per unit of product
Wood ..................35 lineal ft. per unit of product
 Filler.................... 3.8 cu ft. per units of product
Springs.................14 units per units of product

In manufacture of Prince:
Fabric...............$12.00 per sq. yd.
Filler..............$3.50 per cu. ft.
Wood................ 8.00 per lineal ft.
Springs........... 4.50 per unit

f. Direct labor requirements:
King:
Framing Department............ 2.5hrs. at $12 per hr.
Cutting Department.............. 1.5 hrs. at $11 per hr.
Upholstery Department.......... 2.4hrs. at $14 per hr.
Prince: Framing Department............ 1.8 hrs. at $12 per hr.
Cutting Department............. 0.5 hrs. at $11 per hr.
Upholstery Department......... 2.0hrs. at $14 per hr.

3.) Prepare a direct materials purchases budget for August.

4.)Prepare a direct labor cost budget for August

Click here for the solution: The budget director of Regal Furniture Company requests estimates of sales, production, and other operating data from the various administrative units every month

The Tiberius Company expects an EBIT of $100,000 every year forever

The Tiberius Company expects an EBIT of $100,000 every year forever. Tiberius can borrow at 10%. Tiberius currently has no debt, and its cost of equity is 14%. If the corporate tax rate is 34%, what is the value of the firm? What will the value be if Tiberius borrows $200,000 and uses the proceeds to buy up stock? Explain your answers and state concisely any assumption you make.

Click here for the solution: The Tiberius Company expects an EBIT of $100,000 every year forever

Cleaner’s, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore “skip” 1 week’s pay

E16–2 Cleaner’s, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore “skip” 1 week’s pay. The firm has 25 employees who work a 60-hour week and earn an average wage of $12.50 per hour. Using a 10% rate of interest, how much will this change save the firm annually?

Click here for the solution: Cleaner’s, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore “skip” 1 week’s pay

In late 2010, you purchased the common stock of a company that has reported earnings increase in nearly every quarter since your purchase

In late 2010, you purchased the common stock of a company that has reported earnings increase in nearly every quarter since your purchase. The price of the stock increased from $12 a share at the time of purchase to a current level of $45. Notwithstanding the success of the company, competitors are gaining much strength. Further, your analysis indicates that the stock may be over-priced based on your projection of future earnings growth. Your analysis, however, was the same one year ago and the earnings have continued to increase. Actions that you might take range from an outright sale of the stock (and the payment of capital gains tax) to doing nothing and continuing to hold the shares. You reflect on these choices as well as other actions that could be taken. Describe the various actions that you might take and their implications.

Click here for the solution: In late 2010, you purchased the common stock of a company that has reported earnings increase in nearly every quarter since your purchase

Jackie pays $20 every time she visits her doctor

1) Jackie pays $20 every time she visits her doctor. She is covered by a(n)

2) If your employment is terminated, COBRA provides for

3) Ben's health coverage charges a low ($15) deductible each time he visits the doctor or hospital. Other than the low per-service deductible, there is very little cost sharing. However, Ben must go to the health care providers listed by the provider of the health coverage. If he goes to a provider that is not on the list, there is very little coverage. Which of the following types of entity most likely provides Abe's health coverage?

4) All property insurance companies require you to show the following when making a claim:

5) Given a $500 annual deductible, a $4,000 lid on the coinsurance, 80/20 coinsurance, and a $250,000 policy limit, how much of a $15,000 medical bill will be paid by the insured?

6) Disability income policies usually have ____ that is a time delay from the date of the issuance of the policy until benefit privileges are activated.

7) Which of the following best describes a "pre-existing condition"?

8) The insurance designed to help with nursing home or in-home care due to chronic illness is called

9) Surgical expenses now generally are reimbursed on the basis of

10) All of the following except a ____ are highly recommended for a long-term disability income policy.

11) A comprehensive major medical insurance would not

12) Some common liability risks include:

13) A liability suit could result when

14) Homeowners' insurance premiums are determined by

15) Supplementary Medical Insurance (SMI) provides health care protection beyond basic hospital coverage for

16) Medicare is a government-sponsored health care plan composed of Part A and Part B. Part A covers

17) Your son left his skateboard at the bottom of the basement stairs. While going downstairs to change a broken light bulb, you step on the skateboard and break your ankle during the fall. Medical damages total $1,455. How much will your $140,000 homeowners' insurance policy pay for this accident? The policy has $100,000 comprehensive liability coverage and medical payments of $1,000/person.

18) Your standard HO policy will not include coverage for damage done by

19) Negligence results when a person

20) Many airline passengers purchase a special life insurance policy frequently sold at the airport. This is an example of a(n) ____ policy.

21) Which of the following events would probably increase your auto premiums?

22) Homeowner's property insurance does not provide protection on the

23) Suppose a person has a health insurance policy with a $500 calendar year deductible, a $2,000 out-of-pocket cap, and an 80% coinsurance provision. If this person suffers a $600 covered loss, how much will the insurance company pay? (Assume no previous losses have occurred.)

24) Social security provides health care coverage to persons age ____ and those who are ____.

25) Donna, who is single and 30-years-old, has received several speeding tickets recently and was shocked by the effect on her auto insurance. Donna drives a 2002 Pontiac Firebird, is currently not covered by health insurance, has an emergency fund of $25,000, an income of $100,000 per year, and an investment portfolio of $230,000. She is trying to reduce the price of her auto insurance. Which of the following actions is most likely to be advisable.

Click here for the solution: 1) Jackie pays $20 every time she visits her doctor

The budget director of Outdoor Chef Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month

The budget director of Outdoor Chef Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for May 2012 is summarized as follows:

a. Estimated sales for May by sales territory:
b. Estimated inventories at May 1:
c. Desired inventories at May 31:
d. Direct materials used in production:
e. Anticipated purchase price for direct materials:
f. Direct labor requirements:

Required;
1. Prepare a sales budget for May.
2. Prepare a production budget for May.
3. Prepare a direct materials purchases budget for May.
4. Prepare a direct labor cost budget for May

Check: 3. Total Direct Materials Purchases, $939,065

Click here for the solution: The budget director of Outdoor Chef Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month