Exercise 24-09 You have been given the following information about the production of Usher Co., and are asked to provide the plant manager with information for a meeting with the vice president of operations. Standard Cost Card Direct materials (9 pounds at $4 per pound) $36.00 Direct labor (0.80 hours at $10) 8.00 Variable overhead (0.80 hours at $3 per hour) 2.40 Fixed overhead (0.80 hours at $8 per hour) 6.40 $52.80 The following is a variance report for the most recent period of operations. Costs Direct materials Direct labor Total Standard Cost $405,000 90,000 Variances Price Quantity $10,365 F $9,600 U 4,885 U 7,700 U How many units were produced during the period? Number of units LINK TO TEXT How many pounds of raw materials were purchased and used during the period? Raw material pounds LINK TO TEXT What was the actual cost per pound of raw materials? (Round answer to 2 decimal places, e.g. 1.25.) Actual cost per pound of raw materials LINK TO TEXT How many actual direct labor hours were worked during the period? Actual direct labor hours hours LINK TO TEXT What was the actual rate paid per direct labor hour? (Round answer to 2 decimal places, e.g. 1.25.) Actual rate paid per direct labor hour $ /hr Click if you would like to Show Work for this question: Open Show Work - Kimmel, Accounting, 7e Help System Announcements CALCULATOR PRINTER VERSION BACK Exercise 25-03 Hillsong Inc, manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million six month ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $241,115. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 2 3 4 5 6 7 $389,000 400,400 411,000 425,700 433,800 435,200 437,500 The new sewing machine would be depreciated according to the declining balance method at a rate of 20%. The salvage value is expected to be $380,100. This new equipment would require maintenance costs of $95,300 at the end of the fifth year. The cost of capital is 9%. Click here to view the factor table. Use the net present value method to determine the following: (If net present value is negative then enter with negative sign preceding the number eg. 45 or parentheses e.g. (45). Round present value answer to decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Calculate the net present value. Net present value Determine whether Hillsong should purchase the new machine to replace the existing machine? Click if you would like to Show Work for this question: Open Show Work LINK TO VIDEO LINK TO TEXT