Answered step by step
Verified Expert Solution
Question
1 Approved Answer
AEU company uses job order costing system. There are 2 production departments, Machining and assembly. A predetermined rate is used in each department. The machining
AEU company uses job order costing system. There are 2 production departments, Machining and assembly. A predetermined rate is used in each department. The machining department bases its PR on machine hours and the assembly Department bases its rate on direct labour hours. The company made the following estimates at the beginning of the year: Machine hours Direct Labour Hours Overhead cost Machining 20,000 9000 $200,000 Assembly 15000 40,000 $850,000 The following information was available for Job No. 12 which was started and completed during December Machining Assembly Direct Materials $2,000 $-0 DL Cost $1200 $5,500 DLH 30 200 Machine Hours 250 50 Units completed 450 260 REQUIRED 1. Calculate predetermined rate used by each department 2. Compute the total cost of each department 3. Compute unit cost for each department 4. Calculate the total cost of the job AZ company has two projects to choose from. The following information is given about the projects in the table below Project A 4500 Project B 7500 Initial Investment CF1 1200 2300 CF2 2500 1500 CF3 1500 2500 1000 2800 CF4 Discount Rate 6% 11% Required 1. Calculate the Discounted Payback Period for each project 2. Find the NPV and Pl of the 2 projects 3. Compute the internal rate of return (IRR] 4. Judging from the above measures , which project is more attractive
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started