QUESTION 13

1. Hawk, Inc. has a 30% required rate of return. Three divisions of Hawk have proposed three projects to increase income over the next 12 years. Three divisions report different measures as follows: Project A was reported to have an NPV of $500. Project B was reported with an internal rate of return of 25%. Project C was reported to have a payback period of 18 years. With which of these projects should Hawk move forward?

   		Project A
   		All three sound great!
   		Project B
   		Project C

QUESTION 23

1. At Jamal's Juices, each smoothie requires 18 oz of juice, which costs $0.20/oz. It takes 0.10 hrs of direct labor to make smoothies, at $9.55 per DLH. Variable overhead costs $2.2/smoothie, and fixed costs total $95,000 per year. They expect to produce 95,000 smoothies next year.

   Calculate the manufacturing overhead budget for next year.

   		$209,000
   		$90,725
   		$299,725
   		$304,000

QUESTION 24

1. Dex, Inc. installs pre-built decks on mobile homes. They expect to make 250 decks next year, where each deck requires 200 ft of lumber, at $2.75 per foot.

   Calculate the standard cost of direct materials (per deck).

   		$86,400
   		$288
   		$768
   		$550