White house Production Ltd makes two products, Gel and Zin. Product Gel is made in batches of 40,000 units and product Zin is made in batches of 4,000 units. Each batch
has the following set-up and quantity inspection costs:
• Set-up costs £1,000
Quality inspection costs £500
Each month, White house produces 500,000 units of Gel and 250,000 units of Zin.
At present the company charges overheads (to output/products) on the basis of labour
hours which are 250 hours per week for Gel and 250 hours for Zin.
REQUIRED
(a) Calculate the overheads charged to Gel and Zin each month on the basis of
labour hours

(b) Calculate the overheads charged to Gel and Zin each month, using ACTIVITY
BASED COSTING (ABC) with the cost drivers of set-up and quality
inspections

(c) Discuss the difference between the results of (a) and (b) and explain with
reasons which costing method do you prefer

The bonds issued by the south foot bear a coupon rate of 7.5 percent, payable semiannually. the bonds mature in 6.5 years, sell at par, and have a $1,000 face value. what is the yield to maturity

1) u. s. real gdp is substantially higher today than it was 60 years ago. what does this tell us, and what does it not tell us, about the well-being of u. s. residents? what are the limitations of the gdp as a measure of economic well-being? given the limitations, why is gdp usually regarded as the best single measure of a society’s economic well-being? 2) what is an intermediate good? how does an intermediate good differ from a final good? explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of gdp, but the value of intermediate goods produced and not sold is included directly as part of gdp.

Vulcan flyovers offers scenic overflights of mount st. helens, the volcano in washington state that explosively erupted in 1982. data concerning the company’s operations in july appear below: vulcan flyovers operating data for the month ended july 31 actual results flexible budget planning budget flights (q) 56 56 54 revenue ($350.00q) $ 16,500 $ 19,600 $ 18,900 expenses: wages and salaries ($3,300 + $91.00q) 8,354 8,396 8,214 fuel ($31.00q) 1,904 1,736 1,674 airport fees ($870 + $35.00q) 2,730 2,830 2,760 aircraft depreciation ($11.00q) 616 616 594 office expenses ($240 + $1.00q) 464 296 294 total expense 14,068 13,874 13,536 net operating income $ 2,432 $ 5,726 $ 5,364 the company measures its activity in terms of flights. customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. required: 1. prepare a flexible budget performance report for july that includes revenue and spending variances and activity variances.