Piechocki Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 7,200 units, but its actual level of activity was 7,150 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Variable element per unit Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses Fixed element per month $ 0 $ 0 0 42,000 26,000 $ 68,000 $ 34.70 $ 6.70 13.20 2.20 0.70 $ 22.80 Actual results for May: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses $ 249,300 $ 48, 110 $ 95,680 $ 46,000 $ 30,520 The direct materials in the flexible budget for May would be closest to: Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January. Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $19,400. Monthly depreciation is $28,500. Ignore taxes. . Balance Sheet October 31 Assets Cash Accounts receivable 34,000 84,500 170,800 920,000 Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets $ 1,209,300 $ Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity 254,000 755,000 200,300 $ 1,209,300 The difference between cash receipts and cash disbursements for December would be: Almendarez Corporation is considering the purchase of a machine that would cost $150,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $17,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $42,000. The company requires a minimum pretax return of 7% on all investment projects. (Ignore income taxes.) The net present value of the proposed project is closest to: (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Multiple Choice $5,225 $(5,050) $(4,775) $5,005
