a)

b)

c)

An accountancy practice had an overhead budget of $21,060 for a period. Actual overhead expenditure in the period was $21,720. Overheads are absorbed on the basis of client hours worked which totalled 2,375 in the period and resulted in under absorption of $345. What was the budgeted overhead absorption rate per client hour (to two decimal places)? The following data refers to a particular inventory item: Receipts (units) Issues (units) Total cost ($) Day 1 200 1,100 Day 3 140 Day 6 150 840 Day 7 140 The weighted average method is used to value inventory issues. A revised weighted average price is calculated after each purchase. At what cost price per unit (to two decimal places) will the issue on Day 7 be made? A business is considering a project requiring an investment of $200,000 now and with estimated cash inflows of $23,000 per annum in perpetuity. The first cash inflow would be received in one year's time. The cost of capital is 10% per annum. What is the net present value of the investment