of Material K. 3) in producing 700 units of product last period, Bue Company used 5 costing $34,250. The company has established the standard of unit of product, at a price of $7.50 per pound. Calculate the materials associated with producing the 700 units, and indicate whether they usi ounds of Material K per and quantity variances or unfavorable: 4) Miami Inc. manufactures machine parts for aircraft engines. The CEO an offer fromm a subcontractor who would provide 2,800 units of product QR128 Miami does not purchase these parts from the subcontractor it must price of $190,000. If in-house with the following costs: Direct Materials Direct Labor Variable Overhead Allocated Fixed Factory Overhcad $22 16 Allocated Fixed Selling Costs Total Cost S75 If Miami produces part QR128, there would also be incremental fixed costs of period. Should Miami Inc. accept the offer from the subcontractor? per 5) BU Co. produces picture frames. It takes 3 hours of direct labor to produce a frame. standard labor cost is $11.00 per hour. During March, LJ produced 4,000 frames and used 12,400 hours at a total cost of $133,920. What is BU's labor rate variance for March? 6) Dolphin Company is planning to acquire a $250,000 machine to improve manufacturing efficiencies, thereby reducing annual cash operating costs (before taxes) by $80,000 for each of the next five years. The company's estimated weighted-average cost of capital (WACC) is 8%. The machine will be depreciated using straight-line method over a five-year life with no salvage value. Fritz is subject to a combined 40% income tax rate. Required: Show all work! a. What is the estimated net present value (NPV) of the proposed investment? b. What is the Payback Period