36	Quip Corporation wants to purchase a new machine for $340,000. Management predicts that the machine will produce sales of $230,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $90,000 per year. The firm uses the straight-line depreciation and expects the machine to have a residual value of $57,000. Quip's combined income tax rate, t, is 50.00%. The required rate of return is 10.00%
	What is the IRR?
41	National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders.
		Model		Annual Sales in Units
		High F		9,000
		Great P		14,480
	National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows:
				High F		Great P
	Direct materials			$34.25		$23.22
	Direct labor			$15.57		$11.52
	Budgeted Factory Overhead
	Engineering and Design				2,141	engineering hours			$365,873
	Quality Control				11,380	inspection hours			$236,309
	Machinery				30,705	machine hours			$473,265
	Miscellaneous Overhead				23,480	direct labor hours			$117,681
	Total								$1,193,128
	National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities:
					High F		Great P
	Engineering and design hours				833		1,280
	Quality control inspection hours				5,002		6,230
	Machine hours				17,986		11,940
	Labor hours				10,430		12,420
	What is the overhead application rate using the firm's volume-based costing system (rounded to the nearest percent or cents)?
43	Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5.30 kilograms $12.00/kilogram) = $63.60/unit. Direct labor (3.80 hours $20.00 per hour) = $76.00/unit. All materials were issued at the beginning of processing. The operating data shown below were taken from the records for December:
		In-process beginning inventory						None
		In-process ending inventory - 90.00% complete as to labor						1,014	units
		Units completed during he period						7,120	units
		Budgeted output						7,760
		Purchases of materials (in kilograms)						41,000
		Total actual direct labor cost incurred						$555,059
		Direct labor hours worked (AQ)						28,010	hours
		Materials purchase-price variance						$1,690	favorable
		Increase in materials inventory in December						1,634	kilograms
	The actual total cost of direct materials used in production is:
46	Nerrod Company sells its products at $630 per unit, net 30. The firm's gross margin ratio is 50 percent. The firm has estimated the following operating costs:
		Activity				Cost Driver and Rate
		Sales calls			$500	per visit
		Ordering processing			$130	per order
		Deliveries			$62	per order +	$.65	per mile
		Sales returns			$76	per return +	$3.73	restocking per unit returned
	Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers:
					XBT		NINTO
		Number of orders			12		2
		Number of parts per order			630		2,490
		Sales returns
		Number of items			4		12
		Number of units returned			51		62
		Number of sales calls			7		12
		Miles per delivery			13		24
		Shipping terms			FOB, Factory		FOB, Destination
	What is Nerrod's total customer batch-level cost applicable to Ninto?