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

See similar textbooks

Similar questions

Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Required: Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank. × Answer is complete but not entirely correct. Costs Product Cost / Period Cost Period Cost Product Cost 1. Depreciation on salespersons' cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors' salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for…
NEED ALL THREE PARTS OF THIS QUESTION. ...DON'T ATTEMPT IF YOU WILL NOT DO ALL PARTS. . Riverside Technologies Incorporated (RTI) is a small firm in North Sioux City, SD which provides IT solutions for other companies. In addition to providing IT services and computer hardware (i.e. laptops, desktops, and tablets), RTI has decided to add customized computer bags for companies as well. Companies can have RTI create computer bags and other accessories with a custom logo. Suppose a firm like RTI wants to add embroidery service to their customers. The firm would need to invest in 10 high-end embroidery machines which can embroider high quality graphics and can handle repeated use on backpacks, laptop cases, and tablet covers. These machines will cost $10,000 each and have an expected life of 6 years. The firm will also need to hire someone to operate the machines at a salary of $40,000 per year plus benefits equal to 20% of salary. The firm provides a cost of living increase to salary…
Don Masters and two of his colleagues are considering opening a law office in a largemetropolitan area that would make inexpensive legal services available to those whocould not otherwise afford these services. The intent is to provide easy access for theirclients by having the office open 360 days per year, 16 hours each day from 7:00 a.m. to11:00 p.m. The office would be staffed by a lawyer, paralegal, legal secretary, andclerk-receptionist for each of the two 8-hour shifts.In order to determine the feasibility of the project, Don hired a marketing consultantto assist with market projections. The results of this study show that if the firm spends$500,000 on advertising the first year, the number of new clients expected each daywould have the following probability distribution:Don and his associates believe these numbers are reasonable and are prepared tospend the $500,000 on advertising. Other pertinent information about the operation ofthe office is as follows.The only charge to…
The Carla Vista Burkett Company uses a responsibility reporting system to measure the performance of its three investment centers: Planes, Taxis, and Limos. Segment performance is measured using a system of responsibility reports and return on investment calculations. The allocation of resources within the company and the segment managers' bonuses are based in part on the results shown in these reports. Recently, the company was the victim of a computer virus that deleted portions of the company's accounting records. This was discovered when the current period's responsibility reports were being prepared. The actual operating results appeared as follows. Determine the missing amounts. (Round Return on Investment to 1 decimal place, e.g. 52.7%.) Service revenue Variable costs Contribution margin Controllable fixed costs Controllable margin Average operating assets Return on investment $ Planes 5,018,000 1,518,000 25,018,000 12% Taxis $459,000 $ 189,000 79,000 10% Limos 329,000 389,000…
Transitioning from employee to manager has been exciting for Matthew! He enjoys having the responsibility and authority to make decisions, and it is rewarding to join the management team, sharing insights to make better decisions. One of his first responsibilities is to address the DM purchases budget. The company has a strong relationship with its current supplier, but the quality of the supplier's DM has declined. Knowing this, Matthew has already reached out to a different vendor to see what kind of a deal it might offer. The DM information for Matthew's division and for each vendor just described is as follows. ● ● ● ● ● (a) DM on hand as of July 1 slightly exceeds expectations at 1,580 linear board feet. Each unit requires 4 linear board feet; Matthew is most comfortable if the company has 20% of the following month's production needs on hand. The cost per linear foot is $5.50 with the current supplier; it's $6.00 with the new vendor. Planned production for July is 1,900 units;…
CHS is a large multidivision firm. One division, Health Services, is well known Inside CHS for its efficient Information technology (IT). A smaller division, Optics, has approached Health Services with a proposal that it provide IT support in the form of machine time for some of Optics's billing and administrative work. After an analysis of the demands that Optics would place on the system, the IT manager of Health Services notes that Health Services would have to lease a new server because of the additional load. The lease rates for the current server are a fixed annual lease of $3,280 and it averages machine time of 2,900 hours annually. The new server leases for an annual rate of $5,040. Because the new server is a faster machine, Health Services can complete its current requirements In only 2,040 hours. The work for Optics is estimated to be 1,110 hours. In addition to leasing a new server, there are two other changes Health Services would have to make in IT. First, it will have to…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS