,Hi expert please assist here

1. Consider the simple regression model: V/i = Po+ Piri +ui, for i = 1, ..., n, with E(ur,) 7 0 and let z be a dummy instrumental variable for a, such that we can write: with E(uilz;) = 0 and E(vilzi) = 0. (c) Denote by no, the number of observations for which z =0 and by n, the number of observations for which z, = 1. Show that: (a - 2) = =(n-m). 1=1 and that: [(8 -=)(3: - 9) = 7 "(n - ni) (31 - 90) . where to and g are the sample means of y for z equal to 0 and 1 respectively. (Hint: Use the fact that n = nj + no, and that = = m). (d) Now we regress y on i to obtain an estimator of 81. From the standard formula of the slope estimator for an OLS regression and using the result in (c), show that: By1 - 90 I1 - To This estimator is called the Wald estimator.The Yates Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturinglabor. $49.0 Direct materials: 10 lb. at $4.90 per lb. 0 Direct manufacturing labor: 0.5 hour at $32 per hour 16.00 The number of finished units budgeted for January 2014 was 9930; 9900 units were actually produced. Actual results in January 2014 were as follows: Direct materials: 97,500 lb. used Direct manufacturing labor. 4,900 hours $ 165,375 Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchases amounted to 99,300 at a total cost of $501,465. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. 1. Compute the January 2014 price and efficiency variances of direct materials and direct manufacturing labor. 2. Prepare journal entries to record the variances in requirement 1. 3. Comment on the January 2014 price and efficiency variances of Yates Corporation. 4. Why might Yates calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? Requirement 1. Compute the January 2014 price and efficiency variances of direct materials and direct manufacturing labeLet's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Actual input X Budgeted price E Cost Direct materials (purchases) Direct materials (usage) Direct manufacturing laborKatharine Johnson is the owner of Better Bikes, a company that produces high quality cross-country bicycles. Better Bikes participates in a supply chain that consists of Suppliers, manufacturers, distributors, and elite bicycle shops. For several years Better Bikes has purchased titanium from suppliers in the supply chain. Better Bikes uses titanium for the bicycle frames because it is stronger and lighter than other metals and therefore increases the quality of the bicycle. Earlier this year, Better Bikes hired Samson, a recent graduate from StateUniversity, as purchasing manager. Michael believed that he could reduce costs if he purchased titanium from an online marketplace at a lower price. I Compute the direct materials price and efficiency variances. What factors can explain the variances identified In requirement 1? lEould any other variances be affected? Was switching suppliers a good idea for Better Bikes? Explain why or why not. Should Michael Samson's performance evaluation be based solely on pricevariances? Should the production manager's evaluation be based solely on efciency variances? Why is it important for Katharine Johnson to understand the causes of a variance before she evaluates performance? lDther than performance evaluation, what reasons are there for calculatingvariances? 6. What future problems could result from Better Bikes' decision to buy a lower quality of titanium from the online marketplace? i Data Table X Better Bikes established the following standards based upon the company's experience with their previous suppliers. The standards are as follows: Cost of titanium $ 23 per pound Titanium used per bicycle 8 lbs. Actual results for the first month using the online supplier of titanium are as follows: Bicycles produced 500 Titanium purchased 6,500 lb. for $143,000 Titanium used in production 5,000 lb. Requirement 1. Compute the direct materials price and efficiency variances. Let's begin by calculating the cost for the actual input at the budgeted price. Actual input Budgeted price Cost Direct materials (purchases) Direct materials (usage)The Seneca Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor. The Seneca Corporation manufactures lamps. It has set up the following standards per finished unit for Assume that there was no beginning inventory of either direct materials or finished units. During the direct materials and direct manufacturing labor. month, materials purchased amounted to 98,800 b, at a total cost of $583,290. Input price wirianous (Click the icon to view the standards.) and isolated upon purchase, Input-eficiency variances are baolated at the time of usage. The number of finished units budgeted for January 2017 was 9,650: 9,150 units were actualy produced. X IT (Click the icon to view actual data.) Standards Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct $ 54.00 Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest who Direct materials: 10 lb. at $4.40 per lb. Direct manufacturing labor: 0.5 hour at $32 per hour 18.00 Actual Input Budgalod price Coal Direct materials (purchas) 531 520 Print Done Direct materials (usage) 5.40 Direct manufacturing labor 4.700 32.DO 150 400 Next determine the formula and calculate the costs for the flexible budget Budgeted input for actual output Budgeted price Flexible budiget cost Direct materials 98,500 5.40 531,900 Direct manufacturing labor 3200 157,800 Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each wines as favorable (F) or underearable (U). Price Efficiency Actual Data . X Dingot materials F Direct manufacturing labor F Actual results in January 2017 were as follows: Direct materials: 97,000 lb. used Direct manufacturing labor: 4,700 hours 168,828 Print DoneHansell Company expects its trial balance on June 3D to be as follows: HAHSELL COMPANY Budgeted Trill Balance June 33, 2315 : 03bit Cl'ldit I Cash $ 35,333 i Accounts receivable 22,333 i Allowance for bad debts $ 3,233 i Inventory 22,533 g Plant, property, and equipment 555,433 g Accumulated depreciation 253,133 - Accounts payable 32,333 : Hages and salaries payable 22,333 Note payable 133,399 g Stockholders' equity 132,233 Total 5 T25,399 5 ?26,399 5r Typically, cash sales for Hansell represent 20% of sales while credit sales represent 33%. Credit sales terms by the company are Elli], nt']. Hansell bills customers on the first day of the mo nth following the month of sale. Experience has shown that 60% of the company's billings will be collected w'rthin the discount period, 25% by the end of the month after sales, 113% by the end of the second month after the sale, and 5% will ultimately be uncollectible. The company wr'rtes off uncollectible accounts after 12 months. The purchase terms for materials are 2'15, nr'ED. Hansell makes all payments within the discount period. Experience has shown that 80% of the purchases are paid in the month of the purchase and the remainder are paid in the month immediately following. In June 2Dl'3, the firm budgeted purchases of $22,60 for Dura-l and Sli for Flexplas. Total budgeted marketing, distribution, customer service, and administrative costs for 2019 are $2,333,000. Of this amount, $1,100,000 is considered fixed and includes depreciation expense of $110,000. The remainder varies with sales. The budgeted total sales for 2019 are $4 million. All marketing and administrative costs are paid in the month incurred. Management desires to maintain an end-of-month minimum cash balance of $36,000. The firm has an agreement with a local bank to borrow its short-term needs in multiples of $1,000 up to $100,000 at an annual interest rate of 12%. Borrowings are assumed to occur at the end of the month. Bank borrowing at July 1 is SO. Required: Using the information presented above: 1. Prepare the cash budget for July 2019. 2. Prepare the budgeted income statement for July 2019. (Assume that the company uses a LIFO cost-flow assumption.)Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the cash budget for July 2019. (Round your answers to the nearest whole dollar amount.) HANSELL COMPANY Cash Budget For July 2019 Cash balance, beginning (given) 36,000 Cash flow from operations July cash sales 128.760 Collections of receivables from credit sales in June: Collections of receivables from credit sales in June - Within the discount period 253.734 Collections of receivables from credit sales in June - After the discount period 107,880 Collections of receivables from credit sales in May 42.458 532.830 Cash disbursements Materials purchases June 8,310 Materials purchases July Direct manufacturing labor Variable factory overhead Fixed factory overhead 30,000 Variable marketing. customer services, and administrative expenses Fixed marketing, customer services, and administrative expenses Total cash flow from operations 5 494.520 Investing activities Financing activitiesS Financing activities: New borrowing. and of month 0 Cash balance, July 31, 2019 S 530,520 Required 1 Required 2 Prepare the budgeted income statement for July 2019. (Assume that the company uses a LIFO cost-flow assumption.) (Round per unit" to 2 decimal places and other answers to the nearest whole dollar amount.) HANSELL COMPANY Budgeted Income Statement For July 2019 Cost of goods sold Gross margin $ Seling and administrative expenses - Variable Seling and administrative expenses - Vanablo Operating income before tax $ Direct materials - Dura-1000 Direct materials - Flexplas Direct labor - K102 labor Direct labor - K175 labor Factory overhead - Batch-related Factory overhead - Direct-labor hour-related Factory overhead - Fixed