7. A manufacturer allocates manufacturing overhead to jobs on the basis of direct labour hour. Job CV19 required 4 units of direct materials at a cost of 25 per unit and 12 direct labour hours at 16 per hour. Estimated total manufacturing overhead for the year was 56,000 and estimated total direct labour hours were 7,000. (a) Compute the predetermined overhead rate. (2 marks) (b) Compute the total cost of job CV19. (4 marks) 8. A company is considering purchase of a piece of equipment that costs 23,000. Projected net annual cash flows over the project's life are: Year Net Cash Flows 4,000 7,000 15,000 10,000 (a) Calculate the payback period for the project. (3 marks) (b) Calculate the net present value for the project, assuming a cost of capital of 11%. (4 marks) (c) Determine the internal rate of return for the project