21 ABC Company is studying a project that would have a 4 year life and require a $1,600,000 investmentin equipment. At the end of eight years, the project would terminate and the equipment would have no value left over. The project would provide net income each year as follows: Sales Less COGS Gross Margin 3,200,000 300.000 2,900,000 Less: Operating Expenses Advertising, Salaries and other fixed Salary Expense Amortization Total Expenses 1,050,000 1,300,000 100.000 2,450,000 Net Income 450,000 The company's discount rate is 18% 1) compute the net annual cash intlow from project 2) compute the net present value of the project. Is it acceptable? Rate 02 Baron Ltd makes a commercial cleaning compound known as Loomp. The direct materials and direct labour standards for one unit of Loomp follow Standard Quantity Standard Price or Standard Cost or hours Direct materials 12.1 Kg S5.50 per kg $11.55 Direct Labour 10.2 hour 12.00 per hour 240 During the most recent month, the following activity was recorded a. 9,000 kg of materials were purchased at a cost of $5.20 per kg b. All of the material purchased was used to produce 4,000 units of Loomp c. A total of 750 hours of direct labour time was recorded at a total labour cost of $10,425 Required: 1. Compute the direct materials price and quantity variances for the month 2. Compute the direct labour rate and efficiency variances for the month Problem29 You have the following information about the activities of ABC Inc. 2016 2000 Factory manance Indirebut Direct Material purchase Factory Ending Direct material General and Adve Beginning work in process inventory Beginning in the good Erding work in process to Ending finished goods Beging director inventory Sellinen Director Factory Indirect Matera Amortion Factory 27.000 26.000 72200 20.000 63.000 1.000 11.000 67,400 83.000 5,000 7,600 Reinet 1. What was the ending direct material invertory? 2. What was the total manufacturing out 3. What was the continued What was the cast of goods sold? 5. Based on at the swerabow.peccate the net income for 2016 Cost delication Mr. so back began hi pottery manufacturing business seral years ago The following costred during 2016, see the state method to put this 1)As the buses were's $8.000 per month 2) Workshop $700 per month Gay and per Wages of production worker $12/ottery S1 Advertising 500 per month Sales.com 510/putter 7) Rent of production equipment, 5100/month #Amortization of office copier machine 5500 Rentals office 500 per month Phone for taking orders per month 1) terest lost on songs account $1200 per you 21 ABC Company is studying a project that would have a 4 year life and require a $1,600,000 investmentin equipment. At the end of eight years, the project would terminate and the equipment would have no value left over. The project would provide net income each year as follows: Sales Less COGS Gross Margin 3,200,000 300.000 2,900,000 Less: Operating Expenses Advertising, Salaries and other fixed Salary Expense Amortization Total Expenses 1,050,000 1,300,000 100.000 2,450,000 Net Income 450,000 The company's discount rate is 18% 1) compute the net annual cash intlow from project 2) compute the net present value of the project. Is it acceptable? Rate 02 Baron Ltd makes a commercial cleaning compound known as Loomp. The direct materials and direct labour standards for one unit of Loomp follow Standard Quantity Standard Price or Standard Cost or hours Direct materials 12.1 Kg S5.50 per kg $11.55 Direct Labour 10.2 hour 12.00 per hour 240 During the most recent month, the following activity was recorded a. 9,000 kg of materials were purchased at a cost of $5.20 per kg b. All of the material purchased was used to produce 4,000 units of Loomp c. A total of 750 hours of direct labour time was recorded at a total labour cost of $10,425 Required: 1. Compute the direct materials price and quantity variances for the month 2. Compute the direct labour rate and efficiency variances for the month