The use of preservatives by food processors has become a controversial issue Suppose two preservatives areextensively tested and determined safe for use in meats. A processor wants to compare the preservatives for theireffects on retarding spoilage. Suppose 16 cuts of fresh meat are treated with preservative I and 16 are treated withpreservative II, and the number of hours until spoilage begins is recorded for each of the 32 cuts of meat. The resultsare summarized in the table below.4Preservative IPreservative IIX-96 54 hours51-18.8 hoursX106.4 hours5-10.1 hoursSuppose ax = 0.01. Which of the following represents the result of the relevanthypothesis test?1) The null hypothesis is not rejected.2) The null hypothesis is rejected.3) The alternative hypothesis is rejected.4) Insufficient information exists on which to make a decision.

The correct option is 1) The null hypothesis is not rejected.Here's why:A hypothesis test is a…

Answered: The use of preservatives by food…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter13: Emerging Topics In Managerial Accounting

Section: Chapter Questions

Problem 27BEB

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Coyle Pharmaceuticals produces two organic chemicals (Org AB and Org XY) used in the production of two of its most wide-selling anti-cancer drugs. The controller and environmental manager have identified the following environmental activities and costs associated with the two products: Required: 1. Calculate the environmental cost per pound for each product. Which of the two products appears to cause the most degradation to the environment? 2. In which environmental category would you classify excessive use of materials and energy? 3. Suppose that the toxin releases cause health problems for those who live near the chemical plant. The costs, due to missed work and medical treatments, are estimated at 2,025,000 per year. How would assignment of these costs change the unit cost? Should they be assigned?
JFI Foods produces processed foods. Its basic ingredient is a feedstock that is mixed with other ingredients to produce the final packaged product. JFI purchases the feedstock from two suppliers, Rex Materials and Red Oak Chemicals. The quality of the final product depends directly on the quality of the feedstock. If the feedstock is not correct, JFI has to dispose of the entire batch. All feedstock in this business is occasionally "bad," so JFI measures what it calls the "yield," which is measured as, Yield = Good output ÷ Input where the output and inputs are both measured in tons. As a benchmark, JFI expects to get 11 tons of good output for every 20 tons of feedstock purchased for a yield of 55 percent (= 11 tons of output ÷ 20 tons of feedstock). Data on the two suppliers for the past year follow: Rex Materials Red Oak Chemicals Total Total inputs purchased (tons) 1,380 2,280 3,660 Good output (tons) 1,311 1,578 2,889 Average price…
JFI Foods produces processed foods. Its basic ingredient is a feedstock that is mixed with other ingredients to produce the final packaged product. JFI purchases the feedstock from two suppliers, Rex Materials and Red Oak Chemicals. The quality of the final product depends directly on the quality of the feedstock. If the feedstock is not correct, JFI has to dispose of the entire batch. All feedstock in this business is occasionally "bad," so JFI measures what it calls the "yield," which is measured as, Yield = Good output ÷ Input where the output and inputs are both measured in tons. As a benchmark, JFI expects to get 11 tons of good output for every 20 tons of feedstock purchased for a yield of 55 percent (= 11 tons of output ÷ 20 tons of feedstock). Data on the two suppliers for the past year follow: Rex Materials Red Oak Chemicals Total Total inputs purchased (tons) 1,380 2,280 3,660 Good output (tons) 1,311 1,578 2,889 Average price…
LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains. At LaCroix’s facility in northeast Ohio, direct materials (primarily leather hides) are added at the beginning of the process, while conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at the end of the process and are discarded at a net disposal value of zero. LaCroix uses the weighted-average method of process costing. Summary data for April 2017 are as follows: Q.Summarize the total costs to account for; calculate the cost per equivalent unit for each cost category; and assign costs to units completed and transferred out (including normal spoilage), to abnormal spoilage, and to units in ending work in process.
LaCroix Company produces handbags from leather of moderate quality. It distributes the product through outlet stores and department store chains. At LaCroix’s facility in northeast Ohio, direct materials (primarily leather hides) are added at the beginning of the process, while conversion costs are added evenly during the process. Given the importance of minimizing product returns, spoiled units are detected upon inspection at the end of the process and are discarded at a net disposal value of zero. LaCroix uses the weighted-average method of process costing. Summary data for April 2017 are as follows: Q.For each cost category, calculate equivalent units. Show physical units in the first column of your schedule.
A manufacturer of packaging for companies that produce breakfast cereals is considering alternatives regarding the process it uses to pre-process carton paper used to make the packaging. Historically, the company has been using equipment which cuts raw carton paper received from its various suppliers. This cut paper is further painted and assembled into a box shape by two other pieces of equipment. Recently, however, most of its customers began requesting that certain design elements be pressed into the packaging, giving the packaging more visual appeal. The customers were willing to pay more for the added service, making it particularly lucrative for the firm to have incorporate this possibility into its packaging offerings. Managers believed that the existing equipment would be able to handle the new process with certain modifications. In addition to modifying the existing equipment, the company two other alternatives. All alternatives will be able to produce the desired result, will…
Cheyenne Landscaping plants grass seed as the basic landscaping for business campuses. During a recent month, the company worked on three projects (Remington, Chang, and Wyco). The company is interested in controlling the materials costs, namely the grass seed, for these plantings projects.In order to provide management with useful cost control information, the company uses standard costs and prepares monthly variance reports. Analysis reveals that the purchasing agent mistakenly purchased poor-quality seed for the Remington project. The Chang project, however, received higher-than-standard-quality seed that was on sale. The Wyco project received standard-quality seed. However, the price had increased and a new employee was used to spread the seed.Shown below are quantity and cost data for each project. Actual Standard Project Quantity Costs Quantity Costs Total Variance Remington 530 lbs. $1,272 440 lbs. $1,100 $172 U Chang 400…
Mary Green, who works as a manager at the Sea Breeze Restaurant, is analyzing service problems that are increasingly causing owners' concerns. She found out that the customers often decline the menu items ordered because they don't like the substitutes for traditional ingredients, for example, they decline chicken dishes advertised as made from chicken breast but made from chicken thighs instead. The returns of well-prepared dishes to the kitchen increase waste and, therefore, cut into profits. Which of the following control points is likely to be the focus of the initial corrective action? a. Purchasing of food b. Issuing of food c. Preparing of food d. Serving of food
McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is for 500 sandwiches. A sandwich costs $1.50 to produce. Non-defective sandwiches sell, on the average, for $2.50 per sandwich. Defective sandwiches cannot be sold and are scrapped.The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period. Designs K1, K2, and K3 cost $130,000 $150,000, and $170,000, respectively. Under design K1, there is a .80 chance that 90 out of each 100 sandwiches are non-defective and a .20 chance that 70 out of each 100 sandwiches are non-defective. Under design K2, there is a .85 chance that 90 out of each 100 sandwiches are non-defective and a .15 chance that 75 out of each 100 sandwiches are non-defective. Under design K3, there is a .90…
Case 1: You're working the breakfast shift at a fast-food restaurant when a delivery of milk, eggs, and other dairy products arrives. There's a story in the local newspaper about contaminated milk distributed by the dairy that delivers to your restaurant. Upon reading the article more closely, you discover that only a small portion of the dairy's milk is contaminated, and the newspaper lists the senal numbers of the affected containers. When you point out the article to your manager, he tells you to forget it. "If you think we've got time to go through every carton of milk to check serial numbers, you're crazy," he says. The article says nght here that the chances are very less that anyone has a contaminated carton." He also explains that he doesn't have the workers to check the milk, and what's more, destroying the milk would require him to buy emergency milk supplies at the retail price. So he tells you to get back to work and forget about the milk. He says, "I don't have the time or…
The following acceptance rule is being considered for determining whether to take delivery of a large shipment of components: A random sample of 60 components is checked, and the shipment is accepted if no more than three of them is defective. What is the probability of accepting a shipment containing 8% defectives?
Kroft Food Products is attempting to decide whether it should introduce a new line of salad dressings called Special Choices. The company can test market the salad dressings in selected geographic areas or bypass the test market and introduce the product nationally. The cost of the test market is $150,000. If the company conducts the test market, it must wait to see the results before deciding whether to introduce the salad dressings nationally. The probability of a positive test market result is estimated to be 0.6. Alternatively, the company can decide not to conduct the test market and go ahead and make the decision to introduce the dressings or not. If the salad dressings are introduced nationally and are a success, the company estimates that it will realize an annual profit of $1.6 million, whereas if the dressings fail, it will incur a loss of $700,000. The company believes the probability of success for the salad dressings is 0.50, if they are introduced without the test market.…

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