41) (6 points) Bryant Company has obtained the following data about a possible planned investment:

Cost $155,000

Terminal salvage value in 10 years $5,000

Annual cash operating savings for 10 years (end of year) $25,000

Estimated useful life in years 10

Minimum desired rate of return 8%

The company uses straight-line depreciation method for financial reporting. Ignore income taxes. The cash operating savings of $25,000 do not include depreciation expense.

Required:

A) Compute the net present value of the investment.

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B) Compute the payback period.

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C) Compute the accounting rate of return using the initial required investment.

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43) (4 points) Parker Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours (they do not use a standard costing system). Last year manufacturing overhead and direct labor-hours were estimated at $50,000 and 20,000 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour. At the end of the year, it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs. Required: a. Job #461 contained 100 units. Determine the unit product cost that would appear on the job cost sheet.

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b. Determine the underapplied or overapplied overhead for the year.

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44) (4 points) Nixon's Diner bakes pies in large batches. One batch of pies has the following standard costs and amounts:

Standard direct labor hours per batch of pies	1.5
Standard direct labor cost per hour	$19.00

Nixon's Diner baked 425 batches of pies in the most recent month. Actual costs and usage levels were as follows:

Actual direct labor hours per batch of pies	2
Actual direct labor cost per hour	$17.75

Required:

a. Calculate the labor rate variance.

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b. Calculate the labor efficiency variance.

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45) (5 points) The following data is related to sales and production of the Tauro Corporation for last year.

Selling price per unit	$60.00
Variable manufacturing cost per unit	$25.00
Variable selling and administrative expense per unit	$6.00
Fixed manufacturing overhead (in total)	$50,000
Fixed selling and administrative expenses (in total)	$8,000
Units produced during year	10,000
Units sold during year	8,000
Units in beginning inventory	0

a) Prepare an income statement for last year using variable costing.

b) Reconcile the variable and absorption costing income amounts (show at least an indication of your calculations for the difference).