1. Lacy Dallas is examining customer-service costs in the southern region of Camilla Products. Camilla Products has more than 200 separate electrical products that are sold with a 6-month guarantee of full repair or replacement with a new product. When a product is returned by a customer, a service report is prepared. This service report includes details of the problem and the time and cost of resolving the problem. Weekly data for the most recent 8-week period are as follows: Week Customer-Service Department Costs Number of Service Reports I $13,300 185 2 20,500 285 3 12,000 120 4 18,500 360 5 14,900 275 6 21,600 440 7 16,500 350 8 21,300 315 Required: a. Use the high-low method to compute the cost function relating customer-service costs to the number of service reports. b. Calculate the estimated customer-service department costs if the number of service reports is 550. 2. Calgary Lumber has a raw lumber division and a finished lumber division. The variable costs are as follows: Raw lumber division: $125 per 100 board-feet of raw lumber Finished lumber division: $145 per 100 board-feet of finished lumber Required: Assume that there is no board-feet loss in processing raw lumber into finished lumber. Raw lumber can be sold at $175 per 100 board-feet. Finished lumber can be sold at $345 per 100 board-feet. Should Calgary Lumber process raw lumber into its finished form? Show your calculations. 3. Consider the following information: Percentage Service Provided Cout SI S2 P1 S1003 154 3.000 20 0 P2 30 Department Service (SI) Service 25 Product PI) Production 2 (P2) Total 3000 210,000 5675 Required: What is the amount of service department cost allocated to P1 and P2 using direct method? 4. Tasty Bakeries introduced in 2020 a new line of frozen apple pie. For 2020, sales by quarter were as follows: 11,000 units 14,000 units 16,000 units and 22,000 units. Because of rigorous marketing and promotion, the company expects the sales for each quarter of 2021 will be 25% higher than their respective quarter in 2020. The selling price per unit in 2021 is expected to be 54. Required: What are the expected sales in units and dollars, for the second quarter of 2021? For the third quarter of 2021? 5. Manuel, a local retail store, expects to make inventory purchases as follows for the first quarter of the year: January 5000 February 8500 March 11,000 Past experience shows that 20% of a given month's purchases are paid in the month of purchase with the balance paid in the following month. No purchase discounts apply Required: What is the total expected cash disbursement for February? For March? PLOS CLOS Question CI.CZ, SI3.12.1 13 01 (3 MARKS) 13 02 (3 MARKS) 13/03 (3 MARKS) 13 104 (3 MARKS 13 05 (3 MARKS) /15 Total Marks