. The information shown below was taken from the annual manufacturing overhead cost budget of Samantha Company.

Variable manufacturing overhead costs		$28,140
Fixed manufacturing overhead costs		$13,132
Normal production level in labor hours		9,380
Normal production level in units		4,690
Standard labor hours per unit		2

During the year, 4,500 units were produced, 17,500 hours were worked, and the actual manufacturing overhead was $41,700. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours.

a. Compute the total, fixed, and variable predetermined manufacturing overhead rates. (Round answers to 2 decimal places, e.g. 1.25.)

Variable overhead

Fixed overhead

Total overhead

b. Compute the total, controllable, and volume overhead variances.

Total overhead variance $

Overhead controllable variance $

Overhead volume variance

4.

Henkel Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.

			Project Kilo		Project Lima		Project Oscar
Capital investment			$159,650		$169,950		$210,600
Annual net income:
Year	1		13,390		18,025		28,325
	2		13,390		16,995		23,175
	3		13,390		15,965		22,145
	4		13,390		11,845		13,905
	5		13,390		8,755		12,875
Total			$66,950		$71,585		$100,425

Depreciation is computed by the straight-line method with no salvage value. The companys cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) (use factor table)

a.

Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.)

Project Kilo years

Project Lima years

Project Oscar years

b. Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Net present value

c. Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, e.g. 10.50.)

Annual rate of return