Please answer the following questions 32, 25, 21, 19 & 8. Please show your work.

32.) The Long Term Care Plus Company has two service departments actuarial and premium rating, and two operations departments marketing and sales. The distribution of each service department's efforts to the other departments is shown below:

FROM TO

Actuarial Rating Marketing Sales

Actuarial 0% 40% 20% 40%

Rating 25% 0% 37.5% 37.5%

The direct operating costs of the departments (including both variable and fixed costs) were as follows:

Actuarial $60,000

Premium Rating $40,000

Marketing $60,000

Sales $70,000

Determine the total cost accumulated in the marketing department using the step method is (calculate all ratios and percentages to 4 decimal places, for example 33.3333%, and round all dollar amounts to the nearest whole dollar; assume the actuarial department goes first):

25.) Altima Company uses an overhead costing system based on direct labor hours for its two products X and Y. The company is considering adopting an activity-based costing system, and collects the following information for the month of October.

	Product X			Product Y
Production units		20,000			2,000
Direct materials cost per unit	$	50.00		$	40.00
Direct labor cost per hour	$	10.00		$	10.00
Direct labor hours		34,000			6,000

Overhead	Overhead	Total	Activity Consumption
Cost pool	cost	activity	Product X			Product Y
Machine setup	$60,000	1,000 setups		300			700
Engineering change order	40,000	100 orders		20			80
Facility rent	90,000	1,000 sq. feet		300			700

Required:

(1) Compute the unit manufacturing cost of each product under a volume-based costing system based on direct labor hours.

(2) Compute the unit manufacturing cost of each product under the activity-based costing system.

21) National Rodeo Association, a not-for-profit organization, is considering purchasing a new enterprise software system for $90,000. This investment is projected to have an eight-year useful life, and a salvage value of $8,800; the investment is projected to save the organization approximately $18,000 each year in operating costs. In addition to the cost of the software system, the association needs an increase of $5,000 in net working capital (other than cash) in the first year, which will not be released (that is, converted back to cash) until the end of eight years.

Required:

1. What is the payback period for this proposed investment? (Assume that the cash flows, other than salvage value, occur evenly throughout the year. Round your answer to 2 decimal places, e.g., 2.452 years = 2.45 years.)

2. If the Association has a required rate of return of 10 percent, what is the net present value (NPV) of the proposed investment? Round your calculation to whole dollars (i.e., zero decimal points). (The PV annuity factor for 10%, 8 years is 5.335, while the PV $1 factor for 10%, 8 years is 0.467.)

19) Chemical, Inc., has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom:

Per Bag

Direct materials: 25 pounds of XF-2000 @ $0.08/lb. =$2.00

Direct labor: 0.05 hour @ $32.00/hr. =$1.60

The company manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 5,200 direct labor hours. During the month, the company purchased 3,000,000 lbs. of XF-2000 at $0.075 per pound, and incurred a total payroll of $182,000 for direct labor. The company records purchases at standard cost and therefore recognizes material price variances at point of purchase.

Required:

Compute the price and usage variances for direct materials, and the rate and efficiency variances for direct labor for the month of December. Round all four answers to nearest dollar. Be sure to mention if the variances are favorable or unfavorable.

8.) Feel the Difference, Inc. manufactures bath and beauty products such as soaps, skin creams, lotions, and other products primarily for people with dry and sensitive skin. It has just introduced a new line of product that removes the spotting and wrinkling in skin associated with aging. It sells these products in pharmacies and department stores at prices slightly higher than those of other brands because of Feel the Difference's excellent reputation for quality and effectiveness.

Feel the Difference currently has very low utilization of plant capacity. Two years ago, in anticipation of rapid growth, the company opened a new large manufacturing plant, which has yet to be utilized more than 50 percent. Partly for this reason, Feel the Difference has sought new partners and was able, with the help of financial analysts, to locate suitable business partners. The first potential partner identified in this search was a large supermarket chain, All-Mart, which is interested in the partnership because it wants Feel the Difference to manufacture an age cream to sell in its stores. The product would be essentially the same as the Feel the Difference product but would be packaged in the All-Mart brand name. The agreement would pay Feel the Difference $2.00 per unit and would allow All-Mart a limited right to advertise the product as manufactured for All-Mart by Feel the Difference. Feel the Difference's CFO has made some calculations and has determined that the direct materials, direct labor, and other variable costs needed for the All-Mart order would be about $1.00 per unit as compared to the full cost of $2.50 (materials, labor, and overhead) for the equivalent Feel the Difference product.

Required:

Based on a relevant-cost analysis, should Feel the Difference accept the proposal from All-Mart? Beyond short-term financial considerations, what strategic considerations bear on the decision?