ning Ena GMODUL din Nick's Novelties, Inc. is considering the purchase of electronic pinball machines to place in game arcades. The machines would cost a total of $420,000, have an eight-year useful life, and have a total salvage value of $40,000. The company estimated that annual revenues and expenses associated with the machines would be as follows: $250, eee Revenues Operating expenses: Commissions to game arcades Insurance Depreciation Maintenance Net operating income $120,000 7.000 47,500 18,eee 0:15 192.500 $ 57,5ee Click here to view Exhibit 10.1 and Exhibit 10.2. to determine the appropriate discount factor(s) using tables Required: 1-a. Compute the payback period. (Round your answer to 1 decimal place.) Payback period 4.2 years 1-b. Assume that Nick's Novelties, Inc. will not purchase new equipment unless it provides a payback period of 5 years or less. Will the company purchase the pinball machines? Yes No 2-a. If Nick's Novelties, Inc. has a discount rate of 18%, what is the NPV of this investment? (Hint Identify the relevant costs and then perform an NPV analysis.) (Negative amount should be indicated with a minus sign. Round discount factor(s) to 3 decimal places.) Net present value Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is as follows: Direct material: 6 pounds at 58 per pound Direct labour: 3 hours at 514 per hour Variable overhead: 3 hours at $5 per hour Total standard variable cost per unit 5 48 42 15 5105 23 Fixed overhead was budgeted at $595,000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per per Month Unit Sold Advertising $250,000 Sales salaries and commissions $150,000 $12.00 Shipping expenses $ 4.00 The static (i e. planning) budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $7.2 per pound. All of this material was used in production b. Direct-labourers worked 60,000 hours at a rate of $15 per hour. c. Total variable manufacturing overhead for the month was $336,600. And fixed manufacturing overhead was $590.000 d. Total advertising, sales salaries and commissions, and shipping expenses were $259,000, $430,000, and $120,000, respectively Required: What is the materials price variance for March? (Input the amount as a positive value. Leave no cells blank.be certain to enter wherever required. Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for n effect (i.e., zero variance...) Materials price variance Help Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is as follows: Direct material: 5 pounds at 59 per pound Direct labour: 3 hours at $14 per hour Variable overhead: 3 hours at 59 per hour Total standard variable cost per unit $ 45 42 27 5114 316 Fixed overhead was budgeted at $605,000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses: Fixed Cost Variable Cost per per Month Unit Sold Advertising $300,eee Sales salaries and commissions $200, eee $12.00 Shipping expenses $ 4.00 The static (i.e. planning) budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs: a. Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production b. Direct-labourers worked 65,000 hours at a rate of $15 per hour. c. Total variable manufacturing overhead for the month was $612,000. And fixed manufacturing overhead was $600,000. d. Total advertising, sales salaries and commissions, and shipping expenses were $308,000, $480,000, and $106,000, respectively Required: What is the materials quantity variance for March? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance.).) Materials quantity variance Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour hours and its standard cost card per unit is as follows: Direct material: 6 pounds at $8 per pound Direct labour: 3 hours at $14 per hour Variable overhead: 3 hours at $5 per hour Total standard variable cost per unit $ 48 42 15 $105 Fixed overhead was budgeted at $595,000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses Variable Cast per Unit Sold Fixed Cost per Month $250,000 $150,000 Advertising Sales salaries and commissions Shipping expenses $12.00 $ 4.00 The static (i.e. planning) budget for March was based on producing and selling 19,000 units. However, during March the company actually produced and sold 24,000 units and incurred the following costs: a. Purchased 160,000 pounds of raw materials at a cost of $72 per pound. All of this material was used in production b. Direct-labourers worked 60,000 hours at a rate of $15 per hour. c. Total variable manufacturing overhead for the month was $336,600. And fixed manufacturing overhead was $590.000 d. Total advertising, sales salaries and commissions, and shipping expenses were $259,000, $430,000 and $120,000, respectively, Required: If Preble had purchased 175,000 pounds of materials at $72 per pound and used 160.000 pounds in production, what would be the materials price variance for March? (Input the amount as a positive value. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e.. zero variance.).) Materials price variance Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labour-hours and its standard cost card per unit is as follows: $36 Direct material: 4 pounds at $9 per pound Direct labourt 3 hours at $15 per hour Variable overhead: 3 hours at 56 per hour Total standard variable cost per unit 18 $99 08 Fixed overhead was budgeted at $587.000. Fixed overhead is applied on the basis of direct labour-hours. The company also established the following cost formulas for its selling expenses. Fixed Cost Variable Cost per per Month Unit Sold Advertising $210,000 Sales salaries and commissions $11e,eee $13.ee Shipping expenses $ 4.ee The static (ie, planning) budget for March was based on producing and selling 26,000 units. However, during March the company actually produced and sold 31,000 units and incurred the following costs: a. Purchased 155,000 pounds of raw materials at a cost of $72 per pound. All of this material was used in production. b. Direct-labourers worked 56,000 hours at a rate of $16 per hour. c. Total variable manufacturing overhead for the month was $524,600. And fixed manufacturing overhead was $582,000. d. Total advertising, sales salaries and commissions, and shipping expenses were $211.000, $500,000, and $142,000, respectively. Required: If Preble had purchased 171.000 pounds of materials at $72 per pound and used 155,000 pounds in production, what would be the materials quantity variance for March? (Input the amount as a positive value. Leave no cells blank - be certain to enter "o" wherever required. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e.. zero variance...) Materials quantity variance