1. Prior Corp. produces chairs. It requires 5 feet of wood per chair. Sales are estimated to be: 2020 Units Jan. 10,000 units Feb. 12,000 March 14,000 April 8,000 Chairs on hand at December 31, 2019 were 900 chairs. The corporation wants to maintain an Inventory of 10% of the following months' sales in its ending Inventory. Prior Corp. had an inventory of wood at December 31, 2019 of 5,000 feet, and it desires to maintain ending Inventories of 5% of the following months production needs. Required: Prepare a materials budget for January and February 2. Robin Inc. is considering purchasing a new machine. The following information is available: Cost of machine $200,000 ($100,000 down, $25,000 at the end of years 1-4) 10 years Salvage value $5,000 Repairs Year 4, $3,000; Year 8. $2,000 Annual savings Years 1-7, $30,000 per year. Years 8-10, $20,000 per year. Working capital requirement $10,000 Old machine - The company has an old machine that it will not need and will sell if they purchase the new machine. Cost $160,000 Accumulated depreciation $140,000 Book value $20,000 Selle for $16,000 LOSS $4,000 Required: If the required rate of return is 8%, should Robin, Inc. purchase the new machine? A. Using the net present value method B. Using the payback method. The company wants a return within 5 years Show all work. 3. Wilson Corp. uses a standard costing system. The following information is available: Standards for 1 unit Materials 10 lbs @ $2/lb. Labor 2 hours @ $20/hr. Actual Results Manufactured 10,000 units Materials purchased 120,000 lbs @ $1.80/lb. Materials used 105,000 lbs Labor hours 18,500@ $18/hr. Material spending variance = $14,000 favorable Required - Calculate: A. Material purchase price variance B. Material quantity variance C. Labor rate variance D. Labor efficiency variance