...to operations have actually decreased the favorable operating income variance by $46,000. Specifically, the major reason for the favorable operating income variance is the higher actual sales than planned sales of product D and product E. The planned product sales of product D was 20,000 units instead 36,000 units were sold and the planned sales of product E was 8,000 units, instead 28,000 units were sold. The basis reason for the favorable profit variance was that Midwest's actual sales volume was higher than forecast. How can an analysis of the profit variance highlight those areas needing management attention? The analysis of profit variance can show can highlight those areas that need management attention. Particularly in case of Midwest is that the variance due to operations was unfavorable. This means that areas where the costs have been higher than the budgeted costs require corrective measures. If we consider the manufacturing cost, the variable costs show that milk price variance and sugar price variance have been responsible for unfavorable variable costs. Similarly, higher fixed costs of repairs, electricity and water, and spoilage have been responsible for higher actual fixed costs. From the perspective of sales, the actual sales of Product A, B, C, and F have been lower than planned sales. Each of these areas needs management attention. The management needs to address those areas where the costs have...
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...Case 24-4 Midwest Ice Cream Company (A) QUESTIONS Explain in as much detail as possible where all the numbers for Steps 1-4 would come from. (You will need to use your imagination; the case does not describe all details of the profit planning process.) We can get the numbers from the company’s records and its external environment. We can use the following from the company’s records: • Management’s short term and long term plans; • Accounting reports such as financial statements; • Source documents such as official receipts, purchase and sales invoices and vouchers; • Communications/directives from management that affect in one way or another the company’s budgeting process; and • Previous budgets and comparisons with actual performance. The following factors from the external environment can be used: • Trends in the market where the company operates; • Existing economic conditions and issues; • Competition; and • Environmental factors, such as weather conditions. Step 1: Establish standards for selling price, variable expenses, and marginal contribution per gallon. The company’s accounting personnel can use current prices and records for determining material costs. These can be traced trough source documents such as official receipts and invoices. In the problem, advertising expense has been considered as part of the variable cost because management decided to have an allowance of 6 cents per gallon for this expense for...
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...LET ME GO!” she screamed as she slammed the big red door of her not so humble abode, “I need to get some air.” The constant fights with her family were becoming too much for her to handle. Since her mom’s passing a steady tune of profanities and complaints constantly escaped from the cracked windows. What had happened to her life she thought to herself, as she began her walk to paradise springs; the only place she seemed at ease these days. She entered her favorite trail as she usually did, admiring the trees, listening to the birds, and gazing upon the beautiful bubbling spring she began to know so well. There was a certain comfort she felt sitting on the stone wall around the beginning of the spring, and had been coming there more and more often over the weeks. She dipped down and filled her hands with the clear blue water to take a sip. Looking into the warm glittering sun she splashed the pure spring water onto her face, leaving a familiar and intoxicating tingle on her soft skin. Her head snapped to an all too familiar sound, they were coming. Didn’t matter to her who they were, they all acted the same. Another group of drunken people; old, young, tall, short, fat, and skinny, no matter where she went she could not escape them. She watched as they approached, two guys and two girls, all heavily intoxicated, stumbled down the path. They all wore some sort of Milwaukee Brewers paraphernalia. She hated them. She sat and watched, contemplating every possible reason her fellow...
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...Case Study Analysis 2 - Midwest Office Products Questions: Based on the interviews and the data in the case, calculate: a) The cost of processing cartons through the facility. The costs that occur through the facility are warehouse expenses (excluding personnel) and facility/warehouse personnel expenses (excluding truck drivers). The total cost of processing cartons through the facility is $4,320,000. It represents a cost per unit of $54/carton ($29 for warehouse personnel expenses and $25 for warehouse expenses). see table exhibit 1 b) The cost of entering electronic and manual customer orders The cost of entering each electronic customer order is $3.00 ($3.50 based on productive hours). The cost of entering each manual order is divided in two parts: entering the basic information on a manual customer order and entering each line item on the order. They respectively take 9 and 4.5 minutes and cost $4.50 and $2.25 ($5.65 and $ 2.63 based on productive hours). Total manual order is $6.75 per order ($7.88 based on productive hours). Productive hours rate will be used for the rest of the assignment. see table exhibit 2 c) The cost of shipping cartons on commercial carriers The cost of shipping cartons on commercial carriers is $450,000.00 per year and $6.00 per carton. see table exhibit 3 d) The cost per hour of desktop deliveries The cost per hour of desktop deliveries is $75.00 (Total Cost $450,000.00 / Total Truck Drivers...
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...decreased the favorable operating income variance by $46,000. Specifically, the major reason for the favorable operating income variance is the higher actual sales than planned sales of product D and product E. The planned product sales of product D was 20,000 units instead 36,000 units were sold and the planned sales of product E was 8,000 units, instead 28,000 units were sold. The basis reason for the favorable profit variance was that Midwest's actual sales volume was higher than forecast. And also the second question: how an analysis of the profit variance could highlight those areas needing management attention.. The analysis of profit variance can show can highlight those areas that need management attention. Particularly in case of Midwest is that the variance due to operations was unfavorable. This means that areas where the costs have been higher than the budgeted costs require corrective measures. If we consider the manufacturing cost, the variable costs show that milk price variance and sugar price variance have been responsible for unfavorable variable costs. Similarly, higher fixed costs of repairs, electricity and water, and spoilage have been responsible for higher actual fixed costs. From the perspective of sales, the actual sales of Product A, B, C, and F have been lower than planned sales. Each of these areas needs management attention. The management needs to address those areas where the costs have been high and find out reason why the sales of four...
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...Aaron Wilson, Brittni Henson, Dennie Smyth & Joshua Boatright Midwest Office Products Case ACCT. 6233 October 15, 2012 1. Based on the interviews and data in the case, estimate: a. The cost of processing cartons through the facility The two costs of processing cartons through the facility are warehouse costs and warehouse personnel costs. The total processing costs are $54/carton. Cartons/yr | 80000 | Commercial Freight | 75000 | Desktop Delivery | 5000 | Personnel Costs/yr | 2570000 | Truck Driver Cost/yr | 250000 | Warehouse Personnel Cost/yr | 2320000 | Warehouse Costs (excluding personnel) | 2000000 | | | Warehouse Personnel Costs/Carton | 29 | Warehouse Costs (excluding personnel)/Carton | 25 | Total Processing Costs | 54 | b. c. d. e. f. g. h. i. j. k. l. b. The cost of entering electronic and manual customer orders These costs are based on personnel costs. Manual costs consist of both entering basic information and an additional cost for each line item. The electronic entry has a single cost. Order Operators | 16 | Order Entry Costs/yr | 840,000 | Operator Hours/yr | 1750 | Productive Operator Hours/yr | 1500 | Total Productive Hours/yr | 24000 | Total Operator Hours/yr | 28000 | Average Time for Electronic Order | 0.1 | Average Time for Manual Order | | Time to Enter Basic...
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...The great flood of 1993 that drowned the Midwest section of America was the worst flood in recorded history of the United States. It took quite a toll on the people, buildings, and land of the Midwest. Many things factored into the flooding, including: the previous’ year precipitation and weather, the current years’ precipitation, the deteriorating wetlands, and the increased amount of levees, dams, and people living in the floodplains. With above average amounts of precipitation in 1992 and cool temperatures, not much evaporation occurred that year. Without enough evaporation, the soil remained saturated, and when the extremely above average rainfall came in the summer of 1993 came, the water had nowhere to go but to the rivers and streams. These rivers and streams quickly filled up and by July were cresting at record highs all around the Midwest. Near St. Louis the Mississippi river crested at 19 feet higher than the flood stage and over 6 feet higher than the previous record. With flood waters of that magnitude, levees were easily broken and overtopped. The great flood caused around 15 billion dollars in damage and tens of thousands of people to be displaced, some temporarily and some permanent around the Midwest. Places such as Des Moines, Iowa were hit especially hard, as Water Works plant, the distributor of water in Des Moines, was flooded and taken out of commission. People of Des Moines went nearly 2 weeks without running water at all and nearly 3 weeks without drinking...
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...Midterm: Joy Harjo English 375: Literature of the American Midwest Joy Harjo Can we separate the artist from the art? If you read something written by Hitler, could you really understand his intent without knowing what the man himself was about? An individual may read thousands of books, articles or poems during their lifetime, but how many of us really try to understand what sort of background or values influence what we are reading? There is a reason that the Literature of the American Midwest is a collection. Each story or author has something in common that in some way has connected them to writing about what we define as the American Midwest. “If the Midwest is to act as a region, it must know what it is. It must define itself. It needs a unifying portrait, a communal myth. To paint this portrait, we look to our writers, especially our novelists (Longworth, 2010, pg. 1).” Joy Harjo is an example of a writer whose work uniquely defines the Midwest through her heritage, values, accomplishments, and social and political views. Joy Harjo is a particularly interesting writer whose accomplishments and values can help you to understand a great deal about how and why her writings define her as much as she defines them. “Joy Harjo was born in 1951 in Tulsa, Oklahoma to Native American and Canadian ancestry. Strongly influenced by her Muskogee Creek heritage, feminist and social concerns, and her background in the arts, Harjo frequently incorporates Native American...
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...Midwest Farm Supplies Background: • Began operations in 1931 • Provides farming supplies such as • Steady profits for 70years • Distribution centers: ➢ Ohio ➢ Indiana ➢ Illinois ➢ Iowa Environment: • Competitors: ➢ Competitors are getting more computer literate • Suppliers: ➢ Products sold by Midwest are manufactured by other companies but guided by the designs and specifications provided by Midwest. • Customer: ➢ Prefers face to face dialogue with sales rep due to some limitations by phone conversation. Firm as a system: • The management is organized and communicates well. • The management provides one week classes to sales reps on new fertilizers, waste water recovery, computer assisted farm management techniques. The classes are not designed to make them experts in the subject, rather make them competent to discuss the topics to their customers • Current systems are fine, but a system upgrade might be necessary • John Kubanna - “If it isn’t broken, don’t fix it”. But I just don’t think that’s a good idea when it comes to computer applications Subsystems of the firm: • Human Resource • Marketing • Manufacturing • Financial Services Statement of the Problem: • What type of database suits the need of Midwest Farm Supplies? Areas of Consideration: • Midwest’s management and employees have comprehensive...
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...The Midwest region is located in the central part of the United States. In terms of absolute location, it is roughly between 36 and 49 degrees north of the Midwest. It includes states such as Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin. Characteristics of Current Global Region: Explain what key sociocultural (human) and physical characteristics define this as a region. Include citations for your resources using APA style guidelines as needed. The Midwest is often associated with a strong sense of community, hospitality, and hardworking values. It is known for its agricultural heritage with farming playing a significant role in the region's economy and culture. The Midwest is...
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...Case Study Analysis Midwest Office Products Case Timothy Bower ACC6140 Dr. John Knight Midwest Office Products Case The content of this essay describes the case study analysis of the Midwest Office Products company. With an excellent reputation for customer service and responsiveness, Midwest Office Products is a regional distributor of office supplies to institutions and commercial businesses. The company offers a comprehensive product line ranging from simple writing implements (such as pens, pencils, and markers) and fasteners to specialty paper for modern high- speed copiers and printers. With all the advance technology the company had incorporated in making the company more efficient, John Malone, the general manager was concerned why the company has not shown a profit. Based on the interviews and data provided in the case, estimates will show the costs of processing cartons through the facility, entering electronic and manual customer orders, shipping cartons on commercial carriers, and the cost per hour for desktop deliveries. There will be calculated data for the cost and profitability of five exhibited orders, with a comparison of the costs and profitability to those calculated by Midwest’s existing costing system. The analysis provides a difference explanation for profitability of the five orders by the ABC system and the company’s existing cost system, and what actions John Malone should administer to improve...
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...“Earthquake Danger in the Midwest” Kaplan University SC300-13 July 1, 2011 The United States Geological Society (2011) states “The world’s earthquakes are not randomly distributed over the earth’s surface, and tend to be concentrated in narrow zones”. This statement seems to hold true when it comes to the distribution of earthquakes in the United States as they happen primarily in those narrow fault zones. These fault zones are located in Alaska (Prince William Sound), on our West Coast ( San Andreas Fault), on our East Coast (Rambo Fault Line) and in the Midwest (New Madrid Fault) which all lying on the North American Tectonic Plate, a massive irregularly shaped slab of solid rock which is approximately 8000 kilometers or almost 5000 miles wide (Trefil and Hazen, 2011). Tectonic plates are in constant motion as they interact along their margins to form mountain belts, earthquakes and volcanoes. Plate size can vary greatly, from a few hundred to thousands of kilometers across; the Pacific and Antarctic Plates are among the largest. Living in Cincinnati, Ohio carries a relatively high risk of a major earthquake because it lies on the border of the New Madrid Seismic Zone (NMSZ) and the Wabash Valley Seismic Zone (WVSZ) which have the most active geological areas in the eastern United States. The smaller of the two areas is the Wabash Valley area which lies in the Southeastern part of Illinois and Southwestern part of Indiana and came...
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...Social Problem Paper Homelessness and Poverty in the Midwest Sarah Rose Conklin Social Problems Spring Semester, 2010 Defiance College Submitted to: Alesia Yakos-Brown Date of submission: 4/27/10 Mahatma Ghandi once stated “Poverty is the worst form of violence”, this was true when Ghandi first stated this and it is still true in society today. Worldwide there is estimated to be at least 3.5 billion people who are living in poverty daily (Mooney, Knox, & Schacht,2009, pp. 212). That is around 1/5 of the world’s population (Sachs, 2005, pp. 289) It is estimated that 2.5 billion of these people are living on less than two dollars a day and the other one billion are living on less than one dollar a day (Mooney,Knox, & Schacht,2009, pp. 212). It isn’t fair for any person or family to live on such a small amount of money; and because of the high poverty level at least 18% of the world’s population goes hungry daily, that is every one in five people who go hungry (Mooney,Knox, & Schacht,2009, pp. 212). In 2008 it was reported that there were 1.5 million Ohioans’[people from Ohio] living below the national poverty level (Toledo Blade, 2010). In 2009 the U.S. census bureau reported that the population of Ohio is at 11,542,645 people (U.S. Census Bureau, Population Division , 2010), therefore it would put the number of people living below the poverty threshold at about 8% of Ohio’s population. When looking a social problem it may be beneficial to look at the...
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...CHAPTER 1 INTRODUCTION 1.1 Background of the Study Kasilak Development Foundation or KDFI is a non-stock, non-profit social development organization: Its primary purpose is to uplift the socio-economic condition of the communities living in a peacefully and ecologically balanced environment. http://www.kasilak.org Furthermore, Kasilak Development Foundation Incorporated (KDFI) was created in 1997 by Stanfilco as a partner in promoting a strong and excellent service to all communities in all area of operations in Mindanao. Kasilak has provided the Mindanao area with sustainable farming, social services and programs that will improve the quality of life. It was through KDFI that Stanfilco built strong relationships with the people living in the different communities. KDFI is dedicated to achieved the goals specifically in providing peaceful ecologically balance environment. Thus, Stanfilco’s community programs are managed and lead by Kasilak Development Foundation Inc. It was March 3, 1997 that Kasilak was organized as a Corporate Social Responsibility of Stanfilco, and was subsequently registered with Securities and Exchange Commission (SEC) on June 2, 1997 with registration no. D1997-00568. As a multinational corporation in the Asia Pacific, the US government started a partnership with Stanfilco to implement environmental projects. It started with the reforestation project entitled “Libuganon River Reforestation Project” which was co-funded by Dole Philippines...
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...Midwest Lighting Case Midwest Lighting, (MLI) Inc was a company dealing with the manufacture of customized designed fluorescent light fixtures for commercial, and other institutional applications. This company was formed by Daniel Peterson and Julian Scott in 1956 in Flint, Michigan. Daniel was in charge of the engineering and finance sectors while Walters headed the Sales and design unit of the company. As the company grew, personal differences between the two emerged and Daniel bought out Walters from the company and brought in Richard Scott as his new business partner. Daniel became the treasurer of the company and Scott the company president (Adams & Spinelli, 2012, p. 385). The company grew tremendously to steady sales of about $1.2 million and a net profit of more than $18,000. Daniel’s son Jack Peterson and Scott’s son David Scott joined the company in 1983 and 1984 respectively and went on to take charge of the company as the sales and manufacturing managers. The management of the company was stained with a lot of differences and conflicts in the ways of running the business, with both Jack and David preferring different approaches for the well good of the company. As of 2005, the net sales of the company stood at approximately $5.5 million with an after tax profit of around $144,000 and an over 82,000 lighting fixtures shipped. The company had a total of 130 permanent employees with an additional 88 other employees working on an hourly basis. The differences...
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