Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all, respond quickly, and check over work!! Thank you! Labor data for making one gallon of finished product in Bing Company are as

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Please answer all, respond quickly, and check over work!! Thank you!

Labor data for making one gallon of finished product in Bing Company are as follows. (1) Price-hourly wage rate $16.30, payroll taxes $0.50, and fringe benefits $1.40. (2) Quantity-actual production time 1.70 hours, rest periods and cleanup 0.30 hours, and setup and downtime 0.20 hours. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.) (a) Standard direct labor rate per hour. $ (b) Standard direct labor hours per gallon. hours (c) Standard labor cost per gallon. $ McKnight Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $496,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $72,400. Project B will cost $335,000, has an expected useful life of 12 years, a salvage value of zero, and is expected to increase net annual cash flows by $50,000. A discount rate of 8% is appropriate for both projects. Click here to view the factor table. Compute the net present value and profitability index of each project. (If the present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value - Project A $ Profitability index - Project A Net present value - Project B $ Profitability index - Project B Which project should be accepted based on Net Present Value? should be accepted. Which project should be accepted based on profitability index? 4 should be accepted. Wildhorse, Inc. is considering purchasing equipment costing $60000 with a 6-year useful life. The equipment will provide annual cost savings of $16600 and will be depreciated straight-line over useful life with no salvage value. Wildhorse requires a 10% rate of return. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 6 4.623 4.486 4.355 4.231 4.111 3.784 What is the approximate net present value of this investment? $39600 $10234 $14468 $12293 Concord Corporation recorded operating data for its shoe division for the year. $640000 160000 Sales Contribution margin Total fixed costs Average total operating assets 90000 200000 How much is ROI for the year if management is able to identify a way to improve the contribution margin by $10000, assuming fixed costs are held constant? 14% 40% O O O O 35% 25% Sheffield Corp. expects direct materials cost of $9 per unit for 50000 units (a total of $450000 of direct materials costs). Sheffield's standard direct materials cost and budgeted direct materials cost is Standard Budgeted $9 per unit $450000 per year o $450000 per year $450000 per year O $450000 per year $9 per unit O $9 per unit $9 per unit The per unit standards for direct labor are 2 direct labor hours per unit at $12 per hour. If the actual direct labor payroll cost was $25,600 for 2,000 direct labor hours worked to produce 1,200 units, the total direct labor variance is o $3,200 favorable. $3,200 unfavorable. $1,000 unfavorable. $960 unfavorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Case Study In Auditing

Authors: Donald H Taylor

1st Edition

0471046264, 978-0471046264

More Books

Students also viewed these Accounting questions

Question

7. List behaviors to improve effective leadership in meetings

Answered: 1 week ago

Question

6. Explain the six-step group decision process

Answered: 1 week ago