# Exam 1 - AGEC 3423 Exam l March 9‘" 2011 Name Midlacl...

This preview shows pages 1–8. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: AGEC 3423 Exam l March 9‘", 2011 Name Midlacl KIM} £14“ 1. A crop enterprise budget can includes opportunity costs for a. Land b. Labor c. Capital All three of the above e. Only a and c f. None of the above 2. A crop budget is by convention defined using as the base unit for revenue, operating costs, and ownership costs. a. average yield b. the average U.S. farm size c. a furlon d. sebusiieL m: » \$3M“ n - “ ”We “a“ 9.5.1.” of‘the ab: g :1? “M 2/ In a crop enterprise budget, costs are constant no matter how many acres are farmed. a. Fixed (ownership) Variable (operating) c. Could be either a or b wither a nor b 4. If output (yield) is decreased and total costs increase, breakeven price will . Decrease Remain constant initially decrease then begin to increase Not possible to determine unless more information is given None of the above rhmap 5. if an electric motor uses 3,750 Btu per hour, how many Joules per second does it use? Use 1 joule = 0.00094781712 btu. 30/ 6 " l/“» a. 14,243,254,015 (7 (5 a . i 17 Joel“? b. 0.00098731 W d. 5,367,982 e. 0.02874 Number Incorrect on this page i 1 l P a g e 8. For a 350 HP tractor (4WD) that has a 20 year life and plows 6,000 acres per year at a speed of 15 acres per hour, how much is the repair cost over the lifetime of the tractor if the tractor cost \$200,000? a. \$3,500 . b. \$13,000 9,000” X 701,00 »: {5,6130 d. \$1,800 e. \$3,894 f. None of the above 9. In class and in the class notes we learned how repair costs increase over time based on the Kansas State study on repair costs. According to the Kansas State study, how do repair costs increase over time? a. In a linear manner b, W0 Einstein motion aA<WfT\$ mmntiglly d. Quadratic e. None of the above 10. When you look up the Accumulated Repair Cost number from the Iowa State table (just like we did in the lab), the hours you use to find the number in the table are for a. a year we expected life of the piece of the machinery c. the expected life of the farm d. 25 years ' e. None of the above 11. When you look up the salvage values from the Iowa State table for tractors and combines (just like we did in the lab), the hours you use to find the number in the table are for m Wék’pected life of the piece of the tractor c. the expected life of the farm d. 25 years e. None of the above 12. Based on our class notes and what we discussed in class, if you are using sum of year digit and have equipment with a 4 year service life, how many “pieces” do you break up the depreciable value into? a.1 3 b.5 l 2 a, 13 . 15 g- e. 20 f. 3 Number Incorrect on this page 0 3 | P a g e 17. You are a wheat farmer with the following crop budget. What is the break-even price? a. 5.19 b. 4.20 c. 12.10 Dryland Wheat Enterprise Budget - Grain and Graze 1000 acres farmed, 500 acres for this budget @SU N a me OKLAHOMA C(MWERATWE Farm Description exrewsrou SERVICE Total PRODUCTION Units Price Quantity \$/Acre Wheat Bu. 3 3.25 33.63 \$ 109.30 Small Grain Pasture Acre \$ 22.00 1 \$ 22.00 Other income Acre \$ 14.81 1 \$ 14.81 Total Receipts \$ 146.11 OPERATING INPUTS Units Price Quantity \$/Acre Wheat Seed Bu./acre \$ 9.32 2.00 \$ 18 64 Fertilizer Acre \$ 32.08 1 \$ 32.08 Custom Harvest Acre 8 14.14 1 \$ 14.14 Pesticide Acre \$ 3.50 1 \$ 3. 50 Crop Insurance Acre \$ 2.10 1 \$ 2.10 Annual Operating Capital Dollars 8.25% 75.08 \$ 6.19 Machinery Labor Hrs. \$ 7.75 1.12 \$ 8. 68 Custom Hire Acre \$ - 0 \$ - Machinery Fuel, Lube, Repairs Acre 8 37.14 1 \$ 37.14 Other Expense Acre \$ - 0 \$ Total 02erating Costs s E ii 5 Returns Above Total Operating Costs S 23. 64 FIXED COSTS Units Rate S/Acre Machinery/Irrigation \$/value Interest at Dollars 8.50% \$ 7.42 Taxes at Dollars 1.00% \$ 1.34 Insurance Dollars 0.60% \$ 0.52 Depreciation Dollars \$ 9.39 Land Iii/acre S - Interest at Dollars 0.00% \$ - Taxes at Dollars 0.00% \$ -‘__ Total Fixed Costs Total Costs §OEerating + Fixed! \$ 141.14 Returns Above All Speciﬁed Costs \$ 4.97 2‘2 “"7 is 67 3m 3% dis Number Incorrect on this page i 2 5 I P a g e 18. What is the repair cost for the/256 PTO HP tractor on a yearly basis (5 per year)? a. 375 462? b. 2.78 FUR? 7 ZO %i N. c. 1,250 q e. 5,625 f. 0.63 19. The value of W (fuel) is a. 2.89 b” 6‘37 egg/(bl 7< 'ZOOX 3,50 C. 1 2 . 1 3 WMMMW e. 67.89 f. 1.90 20. The value of X (depreciation) is @ q c. 8.65 M». d. 12,786 2.0 e. 112,465 f. 0.89 21. The value on (interest) is a. 10,375 b. 23,459 c. 8.65 GEO/(90¢ Jr L/Z, Sea) 903 d. 6.09 e. 112,465 Z, 1‘. 0.89 22. The value of Z (tax) is a. 2.08 b. 3,250 c. 6.09 0‘: 96/ X PSCJ/(pcb. e. 112.56 Number Incorrect on this page 4 2 7 | P a g e Question 23. Now go through and fill-in the following blank on the budget worksheet. ,23{The value of M (depreciation) is a. 83.21 c. 12.76 19.34 8.65 f. 0.87 Number Incorrect on this page I 9 | P a g e Problems 24 through 32 Your farm hasjust purchased a \$150,000 John Deere (JD) tractor. You purchased the combine on Jan 1“, 2008. You expect to keep the combine for 40 years after which it will have a \$22,000 salvage value. A depreciation schedule for the JD combine is given on the next page. NOTE that the table skips some years. Answer the following questions that will test your knowledge of the depreciation methods we learned in class. 24. What is the value of A if straight line depreciation is used? a. 75,000 b. 340,000 c. 30 d. 8,833 f. None of the above 25. What is the value of B if declining balance is used and R = 12%? a. 75,000 £. 289,000 d. 68 e. 23,896 26. What is the value of C if declining balance is used with R=12%? a. 25,650 b. 37,923 @ d. 27,345 e. None of the above 27. What is the value of D if SOYD is used (Hint: Sum of the year digits for 40 years = 1 + 2 + 3 + 40: 820)? a. 9,910 b. 2,594 a c. 4,247 X 3152 00 (4’ " (9 d. 5,902 \‘204700 [17.10 C (’1. Number incorrect on this page D 11 | P a g e Year Starting Book Value (Jan. 1“) Annual Depreciation Accumulated Depreciation |~——1——+———A—l—— } 3&1 07670 Number Incorrect on this page Ending Book Value (Dec 315‘) cgfk‘ A 4 13|Page Table 3. Accumulated Repair Costs as 3 Percentage of New List Price Type 01 Machine Accumulated Hours 1,000" 2,000 7 3,000. 4,000 5,000 6.000 7,000 8,000 9.000 10.000 Two-wheeldrivetraotor , 1% 3% ’ 6% 11% 19% 25% 34% 7 V 45% 57% 70% Four-wheel drive tractor 0%. 1% 3% 5% 8% 11% 15% 19% 24% 30% TweolMachine Accumulatedliours 2m. ' 405* ‘ our son ' 71.000, 21200,. 1.400 ‘ mm 1.800 2.000 Moldboard plow 2% y 6%: 12% 19% 29% 40% , 53% 7 58% 84% 101% Heavy4dutydisk , 1% 4% 8% 12% _ 18% ‘ 25% 32% 40% 49% 58% , Tandem disk , 1% ' 4% 8% 12% 18% 25% 32% 40% 49% 58% Chisel plow . 3% 8% 14% ' 20% 28% 36% 45% 54% 64% 74% Fieid cultivator ' 3% , 7% 13% 20% 27% » 35% 43% 52% 61% 71% Harrow ’ 3% 7% 13% , 20% 27% y 35% 43% 52% 61% 71% Roller-packer,mulcher ' 2% ' . 5% 8% ' 12% 16% , 20% , 25% 29% 34% 39% Rotary hoe 2% 6% 11% 17% 23% 30% 37% ' 44% 52% 51% Row crop cultivator 0% 2% 5% 10% 17% 25% 36% _ 48% 62% 78% Type olMaolrina Accumulated Hours 200 400 600 800 ' 1,000 1,200 1,400 1,600 1,800 2.000 Corn picker ' , 0% 2% 4% 8% 14% 21% 30% 41% 54% 69% Combine1pull) 0% 1% 4% V 7% , 12% 18% 20% 35% ' 46% 59% Potato harvester 2%, 5% 9% 14% 19% , 25% 90% 37% , 43% 50% Mowewonditioner 1% , 4% 8% , 13% 18% 24% 31%. 38% 46% 55%. Mowervconditioner(rotary) ‘ 1% 3% ' , 6% 10% 16% 23% ‘ 31% 41% 52% 64% Rake , _ , 2% 5% 8% 12% 17% 22% 27% 33%. 39% 45% Rectangular baier 1% 4%. 9% 15% 23% - 32% ' 42% 54% 65% 80% Large square baler' , 1% 2% , 4% V 7 7% 10%, 14% ‘ 18% 23%, 29% 35% Forage harvesterlpulil . 1% ' 3% 77% 10% 15% 20% 26%, 32% 38% 45% W Type oiMachine- . Accumulated Hours 300;: 600" 900,1 1.200 1,500" 1,800. 2,100 7 2.40 2,700 3.000 Forage harvester1SP) , . 0% . 71%; 2% . 4% 7% 10% 13% , . 17% 22% 27% Combine (3P1 ' ‘ L ' 70% ,, 1% .. 3% 5% ' 9% 1 14% 19% , 23% 32% 40% WindrowerISP), ' r ' 1% 2% , 5% , 9% , x {14% 19% 26% 35% , 44% 54% _ Cotton p10ker1SP) ‘ 1% 4% 9% 15% 7 23% 32% 42% 53% _ 56% 79% Type of Machine Accumulated Hours 100 200 300 400 500 000 700' 800 900 1,000 Mower (sickle) , 1% 3% 6% 10%: 14% 19% 25% 31% 38% 46% Mower (rotary) , 0% 2% ' ‘ 4% 7% 11% 15% 22% 29% 36% 44% Large round baler 1% 2% 5% 8% 12% 17% 23% 29% 36% 43% Sugar beet harvester 3% 7% 7 12% 18% 24% 30% 37% 44% 51% 59% Rotary til1er 0% 1% 3% 6%, 9% 13% 18% 23% ' 29% , 36% Row crop planter 0% 1% 3% 5% 7% 11% 15% 20% 25% 32% Grain drill 0% 1% 3% 5% , 7% 11% 15% 20% 26% 32% Fertilizer spreader 3% 8% 13% - 19% 26% 32% 40% 47% 55% 63% Type of Machine Accumulated Hours 200 ‘ 400 500 _ 800 1,000 1,200‘ 1,400 1,600 1.8007 2,000 Boom-type sprayer . 5% 12% 21% 31% _ 41% 52% 63% 76% 80% 101% Air—carrier sprayer 2% 5% 9% 14% 20% 27% 34% 42% 51% 61% Bean puller—windrower 2% - 5% r 9% 14% 20% 27% 34% 42% 51% 61% Sta1k chopper , , 3% 7 ’ 8% 14% 20% 28% 35% 45% 54% y 64% 74% Forage blower , 1%: ‘ 4% 9% . 15% 22% 31% 40% 51% 63% 77% Wagon 1% 4% 7% 11% , 16% 21% 27% 34% 41% 49% Forage wagon 2% 6% 10%, 14% 19% 24% , 29% 35% 41% 47% Source: American Society of Agricultural Engineers, 1996. ' 1 _/ ...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern