Question 11 (Mandatory) (2 points) ABC Corporation has three service departments with the following costs and activity base: Service Department Cost Activity Base for Allocation Graphics Production $200,000 # of copies Accounting $500,000 # of invoices processed Personnel Department $400,000 # of employees ABC has three operating divisions, Micro, Macro and Super. Their revenue, cost and activity information are as follows: Direct Revenues Direct Operating Expenses # of copies made # invoices processed # of employees Micro $700,000 $50,000 20,000 700 130 Macro $850,000 $70,000 30,000 800 145 Super $650,000 $100,000 50,000 500 125 What is the service department charge rate for the Personnel Department? $2,758 $3,200 $3,077 $1,000 Question 23 (Mandatory) (2 points) The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Income from Net Cash Year Operations Flow 1 $18,750 $93,750 2 18,750 93,750 3 18,750 93,750 4 18,750 93,750 5 18,750 93,750 The cash payback period for this investment is: 4 years 5 years 20 years 3 years Question 24 (Mandatory) (2 points) The management of River Corporation is considering the purchase of a new machine costing $380,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Income from Net Cash Year Operations Flow 1 $20,000 $95,000 2 20,000 95,000 3 20,000 95,000 4 20,000 95,000 5 20,000 95,000 M+n The average rate of return for this investment is: 5% 10.5% 25% 15%