Acct 621 Accounts Numerical Assignment

Acct 621 Accounts Numerical Assignment

[ad_1]

Acct 621 Accounts Numerical Assignment

1. AZTEC Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Project Candy    Project Cracker

Initial investment    $400,000    $600,000

Annual net income    30,000    46,000

Net annual cash inflow    110,000    143,000

Estimated useful life    5 years    6 years

Salvage value    -0-    -0-

 

The company requires a 10% rate of return on all new investments.

Present Value of an Annuity of 1

Periods      9%        10%        11%        12%

5    3.890    3.791    3.696    3.605

6    4.486    4.355    4.231    4.111

1. What is the Net Present Value of each of the two projects? (10 Marks)
2. Evaluating the two projects on the Payback method, which project would you select as the more attractive.  Please state your reasons why. (10 Marks).
3. MaxCo has a standard of 2 hours of labor per unit, at $12 per hour. In producing 2,000 units, MaxCo used 3,860 hours of labor at a total cost of $46,970.

Please calculate what MaxCo’s total labour variance is. (5 Marks)

1. The master budget of Wax Co. shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:

Indirect labor    $720,000

Machine supplies    180,000

Indirect materials    210,000

Depreciation on factory building      150,000

Total manufacturing overhead    $1,260,000

What would a flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs at? (5 Marks)

6. Zander Brick Co. produces several products that can be sold at the split-off point or processed further and then sold. The following results are from a recent period:

Sales Value    Additional    Sales Value after

Product        at Split-off     Variable Costs    Further Processing

Soft Bricks    $159,600    $24,000    $188,000

Hard Bricks    124,000    28,200    163,600

Hard Baked Bricks    102,000    19,600    130,000

1. What is the optimal product mix that will maximize profits for Zander? (5 Marks)
2. What is the optimal profit for Zander? (5 Marks)

Acct 621 Accounts Numerical Assignment

The post Acct 621 Accounts Numerical Assignment appeared first on homeworkcrew.

[ad_2]

Source link

"96% of our customers have reported a 90% and above score. You might want to place an order with us."