Factory Overhead Cost Variances Blumen Textiles Corporation began April with a budget for 39,000 hours of production in the Weaving Department. The department has a full capacity of 52,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $132,600 Fixed overhead 93,600 $226,200 Total w The actual factory overhead was $228,900 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 41,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required. a. Variable factory overhead controllable variance: 30,750 X Unfavorable X b. Fixed factory overhead volume variance: $ 19,800 Unfavorable Feedback Year Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Quest Media Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: Radio Station TV Station $290,000 $520,000 2 290,000 520,000 290,000 520,000 4 290,000 520,000 1 3 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar. Radio Station TV Station Present value of annual net cash flows 919,300 1,648,400 Less amount to be invested 750,810 1,484,600 Net present value 168,490 163,800 1b. Compute a present value index for each project. If required, round your answers to two decimal places. Present Value Index Radio Station 1.22 TV Station 1.11 2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest whche percent. Radio Station TV Station Present value factor for an annuity of $1 2.855 X 3.037 x Internal rate of return 15 X % 12 X % 3. The net present value, present value index, and internal rate of return all indicate that the radio station is a better financial opportunity compared to the tv station , although both investments meet the minimum return criterion of 10% Instructions The condensed product-line income statement for Dish N' Dat Company for the month of March is as follows: Dish N' Dat Company Product-Line Income Statement For the Month Ended March 31 1 Bowls Plates 2 Sales Cups $31,760.00 $105,450.00 16,710.00 } Cost of goods sold Gross profit Selling and administrative expenses & Income from operations $70,960.00 32,990.00 $37,970.00 27,350.00 42,680.00 $62,770.00 42,530,00 $15,050.00 16,670.00 $10,620.00 $20,240,00 $(1,620.00) ysis Shaded cells have feedback. Score: 56/89 Differential Analysis Continue (Alternative 1) or Discontinue (Alternative 2) Cups March 31 I 1 Continue Cups Discontinue Cups 2 (Alternative 1) $31,760.00 Differential Effect on Income (Alternative 2) $(31,760.00) 5 Revenues (Alternative 2) $0.00 4 Costs: 5 0.00 28,041.50 Variable cost of goods sold 6 Variable selling and administrative expenses 7 Fixed costs * Income (loss) 28,041.50 16,410.00 0.00 16,410.00 15,888.50 15,888.50 0.00 $(29,101.50) $(15,888.50) $12,691.50 b. Should the Cups line be retained? Explain. No O Yes Points: 1/1 As indicated by the differential analysis in part (a), the income will decrease by $12,691.50 X if the Cups line is discontinued