Most analytical, interpretive, or persuasive essays tend to follow the samebasic pattern. This page should help you formulate effective outlines for mostof the essays that you will write.
Punxsutawney Taxidermy Inc. (PTI) operates a chain of taxidermy shops across the Midwest, with a handful of locations in the South. A rival firm, Heads Up Corp., has a few Midwestern locations, but most of its shops are located in the South. PTI and Heads Up decide to consolidate their operations by trading ownership of a few locations. PTI will acquire four Heads Up locations in the Midwest, and will relinquish control of its southern locations in exchange. No cash changes hands up front. Does this mean that an analyst working for either company can evaluate the merits of this deal by assuming that the project has no initial cash outlay? Explain.
Chapter 7 Exercise 3
3. Variances for direct materials and direct labor
Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows.
The following information pertains to activity for December:
Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations.
Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity.
Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year.
Actual production amounted to 6,500 completed units.
Find the unknowns in Big Chuck’s abbreviated cash budget.
Determine the outstanding loan balance as of September 30, after any repayments have been made.