7. Xavier Company purchases a single product. Variable manufacturing overhead is applied to products on the basis of direct labor hours. The standard costs for one unit of product are as follows Direct material: 6 ounces at 0.50 per ounce Direct labor: 0.6 hours at $30.00 per hour Variable manufacturing overhead: 0.6 hours at $10 per hour $6 S3 18 Total standard variable cost per unit $27 During June, 2,000 units were produced. The costs associated with June's operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce $10,800 Material used in production: 14,000 ounces Direct Labor: 1,100 hours at $30.50 per hour Variable manufacturing overhead costs incurred $33,550 $12,980 Compute the a) direct materials cost variance, b) direct labor cost variance, and c) variable manufacturing overhead cost variances 8. The following data relate to direct labor costs for the current period for 4,000 units produced Standard costs Actual costs 9,000 hours at $5.50 8,500 hours at $5.75 What is the direct labor rate variance? What is the labor time variance? 9. The following data relate to direct labor costs for the current period Standard costs Actual costs 36,000 hours at $22.00 35,000 hours at $23.00 What is the direct labor time variance? 10. The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The present value factors for SI at compound interest of 10% for l through 5 years are 0 909 0826, 0751,0083, and 0 621. respectively In addition to the foregoing information, use the following data in determining the acceptability in this situation Income fronm Operations $100,000 60,000 20,000 10,000 10,000 Net Cash Flow $180,000 170,000 100,000 90,000 90,000 Year a) What is the net present value of this investment? b) Required: What is the present value index of this investment