1. Deere and Company has the following information is for their standard and actual costs. Standard Costs: Budgeted units of production - 12,000 (100% of capacity) Standard material per unit - 14 lbs. Standard material cost - $ 17.50 per pound Standard labor hours per unit - 9 Standard labor rate - $23.00 per hour Standard variable overhead rate - $9.00 per labor hour Budgeted fixed overhead - $891,000 Fixed overhead rate is based on budgeted labor hours at 100% capacity. Actual Cost: Actual production - 11,200 units Actual material purchased and used - 161,280 pounds Actual total material cost - $2,741,760 Actual labor - 105,280 hours Actual total labor costs - $2,379,328 Actual fixed overhead - $808,000 Actual variable overhead - $925,000 Determine: (a) the quantity variance, price variance, and total direct materials cost variance; (b) the time variance, rate variance, and total direct labor cost variance; and (c) the volume variance, controllable variance, and total factory overhead cost variance.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?