For Chapter 10 (Relevant Costing-Sales Mix) Questions: Product Q Product R Sales Price/unit 20.00 18.00 Direct Material/unit 7.50 6.70 Direct Labor/unit 4.20 5.50 Variable OH/unit 4.30 4.00 MH/unit 2.00 1.00 For Chapter 10 (Relevant Costing - Make vs. Buy) Questions: Historical Costs unit Q30,000 DM 6.70 201,000 DL 7.30 219,000 OH 8.00 240,000 selling expense 4.50 135,000 admin expense 2.60 78,000 total expense 29.10 873,000 Assume OH is 75% variable and 25% fixed Assume Selling Expense is 2/3 variable and 1/3 fixed Assume Admin Expense if 50% variable and 50% fixed For Chapter 11 (Capital Budgeting) Questions: Assume initial investment is $98,000 for all three projects: Project X Project Y Project Z Year Cash Flows Cash Flows Cash Flows 1 30,000 40,000 10,000 234 40,000 20,000 25,000 30,000 20,000 30,000 12,000 25,000 25,000 10,000 20,000 40,000 Also assume that cost of capital is 9.0% for all three projects