Acct 621 Accounts Numerical Assignment
[ad_1]
Acct 621 Accounts Numerical Assignment
- 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
- What is the Net Present Value of each of the two projects? (10 Marks)
- Evaluating the two projects on the Payback method, which project would you select as the more attractive. Please state your reasons why. (10 Marks).
- 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)
- 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)
- 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
- What is the optimal product mix that will maximize profits for Zander? (5 Marks)
- What is the optimal profit for Zander? (5 Marks)
Acct 621 Accounts Numerical Assignment
Need Help with a similar Assignment?
The post Acct 621 Accounts Numerical Assignment appeared first on homeworkcrew.
[ad_2]
Source link