# Term 1 Unit 6 Discussions Unit 6 Class DB: Bureau

Term 1 Unit 6 Discussions

Unit 6 Class DB: Bureau of Labor Statistics (ECO201 Macroecoomics)

Not all groups in our society experience equal opportunity to work. The purpose of this discussion board is to allow you to research and explain the causes of disparity between current total U.S. unemployment and the unemployment rate for a demographic of your choice. Do not just list unemployment rates. Explain what causes the rates for the demographic of your choice to be different from the National average.

Visit the Bureau of Labor Statistics website.  What is the current national unemployment rate?  Find the unemployment rate for the demographic group that best fits a description of you (for example, based on age, sex, and race) or choose a demographic group of interest.  Is the rate for that demographic higher or lower than the national average?  What are some reasons for the differences? Do some research in support of what you present.  What factors contribute to the differences?

Covid-19 caveat: The Pandemic did not necessarily impact all demographics in the same way.

Unit 6 Discussion (ACC301 Cost Accounting)

Complete and submit question 9-47 on page 385.

9-47. Activity-Based versus Traditional Costing—Ethical Issues 9-3, 4, 5)

Wendy Chen established Windy City Coaching (WCC) to provide teen counseling and executive coaching services to its clients. WCC charges a \$300 fee per hour for each service. The revenues and costs for the year are shown in the following income statement.

WINDY CITY COACHING

Income Statement

Teen Counseling Executive Coaching Total

Revenue   \$66,000  \$135,000  \$201,000

Expenses:

Transportation, etc.      36,000

Equipment       20,000

Profit      \$105,000

WCC has kept good records of the following data for cost allocation purposes.

Activity Level

Activity  Cost Driver  Teen Counseling Executive Coaching

Providing administrative support Number of clients     6   4

Traveling  Number of visits    100   150

Using equipment  Computer hours   900   700

Required:

a. Complete the income statement using activity-based costing and WCC’s three cost drivers.

b. Recompute the income statement using direct labor-hours as the only allocation base (220 hours for teen counseling; 450 hours for executive coaching).

c. How might WCC’s decisions regarding pricing or dropping a service be altered if Wendy were to allocate all overhead costs using direct labor-hours?

d. Under what circumstances would the labor-based allocation and activity-based costing (using Wendy’s three cost drivers) result in similar profit results?

e. A local nonprofit charity is looking for worthy causes to support through financial grants. A primary criterion for support is financial need. Wendy is thinking of applying for support for the teen counseling program. Which allocation method would give her the best chance of winning a grant? Would it be ethical for Wendy to report the income using this method in her application?

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