Acme Industries manufactures microwave ovens with a production workforce of 450 full-time workers. The process includes using pneumatic screwdrivers and drills and manually lifting boxes weighing up to 35 pounds from a height of 24” to a height of 36”. Over the past year, there have been 35 cases of carpal tunnel syndrome and 15 cases of lower back strain reported. There were 850,000 total work hours at the facility for the year. Calculate the combined incidence rate of MSDs and CTDs for the facility for each 100 full-time workers per year. Compare the rate to the industry rate of 1.5/100 workers/year. Do you believe the incidence rate for Acme Industries is a problem?  Describe how you would conduct a worksite analysis of ergonomic issues related to the MSDs and CTDs present at the facility. Make sure you list the risk factors that you believe are related to the injuries. Include a discussion of how you would determine if physical stress is a risk component in the injuries and illnesses. Finally, recommend some strategies that you believe could be used to address the MSDs and CTDs at this facility. Which regulation, standard, or guideline would you use to address the issues? Your case study should be a minimum of two pages in length, not counting the title and reference pages. You are required to use at least two outside sources, one of which may be the textbook. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying APA citations. Master Budget You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price—$10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) 30,000 June (budget) 45,000 February (actual) 20,000 July (budget) 40,000 March (actual) 50,000 August (budget) 30,000 April (budget) 70,000 September (budget) 20,000 May (budget) 95,000 Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. Suppliers are paid $3 for a pair of earrings. 40% of a month’s purchases is paid for in the month of purchase; the other 60% is paid for in the following month. All sales are on credit. Only 30% of a month’s sales are collected in the month of sale. An additional 60% is collected in the following month, and the remaining 10% is collected in the second month followi ...

1. Acme Industries manufactures microwave ovens with a
production workforce of 450 full-time workers. The process
includes using pneumatic screwdrivers and drills and manually
lifting boxes weighing up to 35 pounds from a height of 24” to a
height of 36”. Over the past year, there have been 35 cases of
carpal tunnel syndrome and 15 cases of lower back strain
reported. There were 850,000 total work hours at the facility for
the year.
Calculate the combined incidence rate of MSDs and CTDs for
the facility for each 100 full-time workers per year. Compare
the rate to the industry rate of 1.5/100 workers/year. Do you
believe the incidence rate for Acme Industries is a problem?
Describe how you would conduct a worksite analysis of
ergonomic issues related to the MSDs and CTDs present at the
facility. Make sure you list the risk factors that you believe are
related to the injuries. Include a discussion of how you would
determine if physical stress is a risk component in the injuries
and illnesses.
Finally, recommend some strategies that you believe could be
used to address the MSDs and CTDs at this facility. Which
regulation, standard, or guideline would you use to address the
issues?
Your case study should be a minimum of two pages in length,
not counting the title and reference pages. You are required to
use at least two outside sources, one of which may be the
textbook. All sources used, including the textbook, must be
referenced; paraphrased and quoted material must have
accompanying APA citations.
Master Budget
You have just been hired as a new management trainee by

2. Earrings Unlimited, a distributor of earrings to various retail
outlets located in shopping malls across the country. In the past,
the company has done very little in the way of budgeting and at
certain times of the year has experienced a shortage of cash.
Since you are well trained in budgeting, you have decided to
prepare a master budget for the upcoming second quarter. To
this end, you have worked with accounting and other areas to
gather the information assembled below.
The company sells many styles of earrings, but all are sold for
the same price—$10 per pair. Actual sales of earrings for the
last three months and budgeted sales for the next six months
follow (in pairs of earrings):
January (actual)
30,000
June (budget)
45,000
February (actual)
20,000
July (budget)
40,000
March (actual)
50,000
August (budget)
30,000
April (budget)
70,000
September (budget)
20,000
May (budget)
95,000

3. Sufficient inventory should be on hand at the end of each month
to supply 40% of the earrings sold in the following month.
Suppliers are paid $3 for a pair of earrings. 40% of a month’s
purchases is paid for in the month of purchase; the other 60% is
paid for in the following month. All sales are on credit. Only
30% of a month’s sales are collected in the month of sale. An
additional 60% is collected in the following month, and the
remaining 10% is collected in the second month following sale.
Monthly operating expenses for the company are given below:
Variable:
Sales commissions
5% of sales
Fixed:
Advertising
$
190,000
Rent
$

4. 20,000
Salaries
$
100,000
Utilities
$
8,000
Insurance
$
3,000
Depreciation
$
14,000
Insurance is paid on an annual basis, in November of each year.
At the end of June, the company received $4,000 deposit for
July sales. Sales in advance is a liability.
The company plans to purchase $20,000 in new equipment
during May and $60,000 in new equipment during June; both
purchases will be for cash. The company declares dividends of
$15,000 each quarter, payable in the first month of the
following quarter.
The company’s balance sheet as of March 31 is given below:
Assets

5. Cash
$
74,000
Accounts receivable ($20,000 February sales; $350,000 March
sales)
370,000
Inventory
80,000
Prepaid insurance
21,000
Property and equipment (net)
950,000
Total assets
$
1,495,000
Liabilities and Stockholders’ Equity
Accounts payable
$
100,000
Dividends payable
15,000
Common stock
800,000
Retained earnings
580,000
Total liabilities and stockholders’ equity
$
1,495,000

6. The company maintains a minimum cash balance of $50,000.
All borrowing is done at the beginning of a month; any
repayments are made at the end of a month.
The company has an agreement with a bank that allows the
company to borrow in increments of $1,000 at the beginning of
each month. The interest rate on these loans is 1% per month
and for simplicity we will assume that interest is not
compounded. At the end of the quarter, the company would pay
the bank all of the accumulated interest on the loan and as much
of the loan as possible (in increments of $1,000), while still
retaining at least $50,000 in cash.
Required:
Prepare a master budget for the three-month period ending June
30. Include the following detailed schedules: Use the
formats/tables below. Any other format is unacceptable. Below
each table, show how you arrived at the numbers in your tables.
Lack of detailed calculations will reduce your marks even if the
answers are correct.
1. a. A sales budget, by month and in total.
Sales Budget
April

7. May
June
Quarter
Budgeted unit sales
Selling price per unit
Total sales
b. A schedule of expected cash collections, by month and in
total.
Earrings Unlimited
Schedule of Expected Cash Collections
April
May
June
Quarter
February sales

8. March sales
April sales
May sales
June sales
Total cash collections
c. A merchandise purchases budget in units and in dollars.
Show the budget by month and in total.
Earrings Unlimited
Merchandise Purchases Budget
April

9. May
June
Quarter
Budgeted unit sales
Add: Desired ending merchandise inventory
Total needs
Less: Beginning merchandise inventory
Required purchases
Unit cost
Required dollar purchases

10. d. A schedule of expected cash disbursements for merchandise
purchases, by month and in total.
Earrings Unlimited
Budgeted Cash Disbursements for Merchandise Purchases
April
May
June
Quarter
Accounts payable
April purchases

11. May purchases
June purchases
Total cash payments
2. A cash budget. Show the budget by month and in total.
Determine any borrowing that would be needed to maintain the
minimum cash balance of $50,000.
Earrings Unlimited
Cash Budget
For the Three Months Ending June 30
April
May
June Quarter
Quarter
Beginning cash balance
$74,000
Add collections from customers

12. 1,996,000
Total cash available
2,070,000
Less cash disbursements:
Merchandise purchases
820,000
Advertising
600,000
Rent
54,000
Salaries
318,000
Commissions

13. 86,000
Utilities
21,000
Equipment purchases
56,000
Dividends paid
15,000
Total cash disbursements
1,970,000
Excess (deficiency) of cash available over disbursements
100,000
Financing:
Borrowings

14. 180,000
Repayments
(180,000)
Interest
(5,300)
Total financing
(5,300)
Ending cash balance
$94,700
·
Required 1D
3. A budgeted income statement for the three-month period
ending June 30. Use the contribution approach.
Earrings Unlimited
Budgeted Income Statement
For the Three Months Ended June 30
Sales
Variable expenses:

15. Cost of goods sold
Commissions
Contribution margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation

16. Net operating income
Interest expense
Net income
4. A budgeted balance sheet as of June 30.
Earrings Unlimited
Budgeted Balance Sheet
June 30
Assets
Cash

17. Accounts receivable
Inventory
Prepaid insurance
Property and equipment, net
Total assets
Liabilities and Stockholders’ Equity
Accounts payable
Dividends payable
Common stock
Retained earnings
Total liabilities and stockholders’ equity
Required 3