Thomas Campbell and Bonnie Glenn owned the apartment building located at 102-104 Bellevue Street, in the Dorchester section of Boston. Campbell was the day-to-day manager, supervising any renovations and collecting the rents. On April 2, 1987, a Boston
police officer, after observing heavy foot traffic in the building, made a drug-related raid and arrest in the building. Break-ins were common at apartment no. 104-3. Following one of the break-ins, a different door was installed to apartment no. 104-3. The door had a hollow "peephole" below the traditional peephole and two "two by fours" were used to bar the inside of the door. After the new door was installed, transactions could occur by having the buyer put money through the lower peephole in the door. Drugs were pushed out the same hole to the buyer. Campbell collected rents in the building. When he collected from apartment no. 104-3, he would be met by different individuals who claimed to be the occupant's cousin or brother. Campbell was never able to see inside apartment no. 104-3. Three weeks after the new door was installed, Detective Sherman Griffiths of the Boston Police Department was shot and killed during the course of a raid on apartment no. 104-3. His widow (plaintiff) brought suit against Campbell and Glenn for their negligence in the operation and maintenance of their building. Are they liable? Griffiths v. Campbell, 679 N.E.2d 536 (Mass. 1997).
?No. The failure to notify police of alleged illegal activity was not the sole cause of the death of the officer. Even if the police had been notified, a homicide during the course of a raid is not foreseeable.
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What are conversion costs? In determining equivalent units of production, why are conversion costs calculated separately from direct materials?
What will be an ideal response?
Aikman, Inc., manufactures and sells two products: Product O6 and Product O7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected ProductionDirect Labor-Hours Per UnitTotal Direct Labor-HoursProduct O62009.01,800Product O780010.08,000Total direct labor-hours 9,800The direct labor rate is $17.50 per DLH. The direct materials cost per unit for each product is given below: Direct Materials Cost per UnitProduct O6$206.50Product O7$162.30The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected ActivityActivity Cost PoolsActivity MeasuresOverhead CostProduct O6Product
O7TotalLabor-relatedDLHs$133,7701,8008,0009,800Production ordersorders 18,501400300700Order sizeMHs 145,1803,0003,1006,100 $297,451 The unit product cost of Product O6 is closest to: (Round your intermediate calculations to 2 decimal places.) A. $721.00 per unit B. $661.45 per unit C. $896.71 per unit D. $637.15 per unit
A company uses the periodic inventory system and had the following activity during the current monthly period. November 1:Beginning inventory100 units @ $20November 5:Purchased100 units @ $22November 8:Purchased50 units @ $23November 16:Sold200 units @ $45November 19:Purchased50 units @ $25Using the weighted-average inventory method, the company's ending inventory would be:
A. $2,400 B. $2,200 C. $2,250 D. $2,000 E. $4,400
Which of the following factors reduces unit costs over the product life cycle?
A) increased promotion and training efforts B) smaller orders of materials C) increased use of specialized equipment D) greater turnover of personnel