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3. ABC is evaluating a new project. The after-tax cash flows for the project will be $10,000; $10,000;$10,000;$10,000; and $7,000, respectively, for each of the

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3. ABC is evaluating a new project. The after-tax cash flows for the project will be $10,000; $10,000;$10,000;$10,000; and $7,000, respectively, for each of the Years 1 through 5 . The initial cash outlay will be $40,000. The required rate is 10%. Required: Calculate NPV, PBP for this project. PVIF (10%,1)=0.909,PVIF(10%,2)=0.826, PVIF (10%,3)=0.751, PVIF(10%,4)=0.683,PVIF(10%,5)=0.621. (15-point) DEF Products uses a job-costing sy stem for its units, which pass from the Machining Departunent, to the Asembly Department, to finished-goods imventory. The Machining Department is heavily automated; in contrast, the A ssembly. Department perfornts a number of manual-assembly activities. The company uses machine hours to apply manufacturing overhead to products in the Machining Department, and direct labor cost to apply manufacturing overticad to products in the Assembly Department. The following information relates to the Machining Department for the ycar just ended: The Machining Department data that follow pertain to job no. 69 , the only job in production at year-end. Required: A. Assuming the use of normal costing, calculate the predetermined overhead rate that is used in the Machining Department. B. Compute the cost of the Machining Department's year-end work-in-process inventory. C. Determine the amount that overhead was under- or overapplied during the year in the Machining Department. Indicate whether it is overapplied or underapplied. D. If Dodger disposes of the Machining Department's under-or overapplied overhead as an adjustment to Cost of Goods Sold, would the company's Cost-of-Goods-Sold account increase or decrease? Explain. E. How much overhead would have been charged to the Machining Department's Work-in-Process account during the year? (20-point)

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