Rosa's employer has instituted a flexible benefits program. rosa will use the plan to pay for her daughter's dental expenses and other medical expenses that are not covered by health insurance. rosa is in the 24% marginal tax bracket and estimates that the medical and dental expenses not covered by health insurance will be within the range of $4,000 to $5,000. her employer's plan permits her to set aside as much as $5,000 in the flexible benefits account. rosa does not itemize her deductions.
a. rosa puts $4,000 into her flexible benefits account, and her actual expenses are $5,000. what is her cost of underestimating the expenses? $
b. rosa puts $5,000 into her flexible benefits account, and her actual expenses are only $4,000. what is her cost of overestimating her expenses? (assume this is a "lose it or use it" plan). $
c. what is rosa's cost of underfunding as compared with the cost of overfunding the flexible benefits account?
d. does your answer in part (c) suggest that rosa should fund the account closer to the low end or to the high end of her estimates?

The chromosome manufacturing company produces two products, x and y. the company president, jean mutation, is concerned about the fierce competition in the market for product x. she notes that competitors are selling x for a price well below chromosome's price of $13.50. at the same time, she notes that competitors are pricing product y almost twice as high as chromosome's price of $12.50.ms. mutation has obtained the following data for a recent time period: product x product y number of units 11,000 3,000 direct materials cost per unit $3.23 $3.09 direct labor cost per unit $2.22 $2.10 direct labor hours 10,000 3,500 machine hours 2,100 1,800 inspection hours 80 100 purchase orders 10 30ms. mutation has learned that overhead costs are assigned to products on the basis of direct labor hours. the overhead costs for this time period consisted of the following items: overhead cost item amount inspection costs $16,200 purchasing costs 8,000 machine costs 49,000 total $73,200using direct labor hours to allocate overhead costs determine the gross margin per unit for product x. choose the best answer from the list below.a. $1.93b. $3.12c. $7.38d. $2.43e. $1.73using activity-based costing for overhead allocation, determine the gross margin per unit for product y. choose best answer from list below.a. $10.07b. ($2.27)c. ($5.23)d. ($7.02)e. $7.02