36 Quip Corporation wants to purchase a new machine for $340,000. Management pre

Question

36 Quip Corporation wants to purchase a new machine for $340,000. Management predicts that the machine will produce sales of $230,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $90,000 per year. The firm uses the straight-line depreciation and expects the machine to have a residual value of $57,000. Quip's combined income tax rate, t, is 50.00%. The required rate of return is 10.00% What is the IRR? 41 National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F 9,000 Great P 14,480 National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows: High F Great P Direct materials $34.25 $23.22 Direct labor $15.57 $11.52 Budgeted Factory Overhead Engineering and Design 2,141 engineering hours $365,873 Quality Control 11,380 inspection hours $236,309 Machinery 30,705 machine hours $473,265 Miscellaneous Overhead 23,480 direct labor hours $117,681 Total $1,193,128 National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities: High F Great P Engineering and design hours 833 1,280 Quality control inspection hours 5,002 6,230 Machine hours 17,986 11,940 Labor hours 10,430 12,420 What is the overhead application rate using the firm's volume-based costing system (rounded to the nearest percent or cents)?   43 Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5.30 kilograms × $12.00/kilogram) = $63.60/unit. Direct labor (3.80 hours × $20.00 per hour) = $76.00/unit. All materials were issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory None In-process ending inventory - 90.00% complete as to labor 1,014 units Units completed during he period 7,120 units Budgeted output 7,760 Purchases of materials (in kilograms) 41,000 Total actual direct labor cost incurred $555,059 Direct labor hours worked (AQ) 28,010 hours Materials purchase-price variance $1,690 favorable Increase in materials inventory in December 1,634 kilograms The actual total cost of direct materials used in production is: 46 Nerrod Company sells its products at $630 per unit, net 30. The firm's gross margin ratio is 50 percent. The firm has estimated the following operating costs: Activity Cost Driver and Rate Sales calls $500 per visit Ordering processing $130 per order Deliveries $62 per order   + $.65 per mile Sales returns $76 per return   + $3.73 restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: XBT NINTO Number of orders 12 2 Number of parts per order 630 2,490 Sales returns Number of items 4 12 Number of units returned 51 62 Number of sales calls 7 12 Miles per delivery 13 24 Shipping terms FOB, Factory FOB, Destination What is Nerrod's total customer batch-level cost applicable to Ninto?   36 Quip Corporation wants to purchase a new machine for $340,000. Management predicts that the machine will produce sales of $230,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $90,000 per year. The firm uses the straight-line depreciation and expects the machine to have a residual value of $57,000. Quip's combined income tax rate, t, is 50.00%. The required rate of return is 10.00% What is the IRR? 41 National Inc. manufactures two models of CMD that can be used as cell phones, MPX, and digital camcorders. Model Annual Sales in Units High F 9,000 Great P 14,480 National uses a volume-based costing system to apply factory overhead based on direct labor dollars. The unit prime costs of each product were as follows: High F Great P Direct materials $34.25 $23.22 Direct labor $15.57 $11.52 Budgeted Factory Overhead Engineering and Design 2,141 engineering hours $365,873 Quality Control 11,380 inspection hours $236,309 Machinery 30,705 machine hours $473,265 Miscellaneous Overhead 23,480 direct labor hours $117,681 Total $1,193,128 National's controller had been researching activity-based costing and decided to switch to it. A special study determined National's two products have the following budgeted activities: High F Great P Engineering and design hours 833 1,280 Quality control inspection hours 5,002 6,230 Machine hours 17,986 11,940 Labor hours 10,430 12,420 What is the overhead application rate using the firm's volume-based costing system (rounded to the nearest percent or cents)?   43 Shade Company adopted a standard cost system several years ago. The standard costs for direct labor and direct materials for its single product are as follows: Materials (5.30 kilograms × $12.00/kilogram) = $63.60/unit. Direct labor (3.80 hours × $20.00 per hour) = $76.00/unit. All materials were issued at the beginning of processing. The operating data shown below were taken from the records for December: In-process beginning inventory None In-process ending inventory - 90.00% complete as to labor 1,014 units Units completed during he period 7,120 units Budgeted output 7,760 Purchases of materials (in kilograms) 41,000 Total actual direct labor cost incurred $555,059 Direct labor hours worked (AQ) 28,010 hours Materials purchase-price variance $1,690 favorable Increase in materials inventory in December 1,634 kilograms The actual total cost of direct materials used in production is: 46 Nerrod Company sells its products at $630 per unit, net 30. The firm's gross margin ratio is 50 percent. The firm has estimated the following operating costs: Activity Cost Driver and Rate Sales calls $500 per visit Ordering processing $130 per order Deliveries $62 per order   + $.65 per mile Sales returns $76 per return   + $3.73 restocking per unit returned Nerrod Company has gathered the following data pertaining to activities it performed for two of its customers: XBT NINTO Number of orders 12 2 Number of parts per order 630 2,490 Sales returns Number of items 4 12 Number of units returned 51 62 Number of sales calls 7 12 Miles per delivery 13 24 Shipping terms FOB, Factory FOB, Destination What is Nerrod's total customer batch-level cost applicable to Ninto?  

Explanation / Answer

36 Quip Corporation wants to purchase a new machine for $340,000. Management pre

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.