Differential Analysis for Machine Replacement Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $78, 400, the accumulated depreciation is $31,400, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $163, 100. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:

Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $94,400, the accumulated depreciation is $37,800, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $196,400. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:   Present Operations   Proposed Operations   Sales $299,200   $299,200   Direct materials $102,000   $102,000   Direct labor 70,800   —   Power and maintenance 6,600   34,900   Taxes, insurance, etc. 2,400   7,800   Selling and administrative expenses 70,800   70,800   Total expenses $252,600…

Your company is considering the purchase of a new 623K Wheel Tractor-Scraper. Use the following information to calculate the hourly owning costs, hourly operating costs, and total owning and operating costs.  -         Delivered price (with tires): $420,000 -         Cost of Tires: $30,000 and their life is determined by the average operation in zone B. -         Salvage value is zero - the equipment is new and it is anticipated to be used for 5 years, until end of its service life. -         Anticipated operating hours per year: 2,000 hrs/yr -         Simple interest rate for purchase loan: 12% -         Annual cost of Insurance: $5,500 (See optional method) -         Property tax rate: 2% -         Fuel use will be average value in medium range -         Cost of fuel: $3.10 per gallon -         Hourly Maintenance Cost: $5.00 per hour -         Repair cost: $11.00 per hour -         Operator cost (with fringes): $75 per hour -         No undercarriage or special wear items costs…

A machine with a book vale of $305,000 has an estimated 6-year life. A proposal is offered to sell the old machine for $390,000 and replace it with a new machine at a cost of $473,000. The new machine has a 6-year life with no residual value. The new machine would reduce annual direct labor costs from $91,000 to $74,000. Prepare a differential analysis dated October 3 on whether to Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2).

Assume Plain Ice Cream Company, Incorporated, in Ithaca, NY, bought a new ice cream production kit (pasteurizer/homogenizer, cooler, aging vat, freezer, and filling machine) at the beginning of the year at a cost of $28,000. The estimated useful life was four years, and the residual value was $2,560. Assume that the estimated productive life of the machine was 10,600 hours. Actual annual usage was 4,240 hours in Year 1; 3,180 hours in Year 2; 2,120 hours in Year 3; and 1,060 hours in Year 4. Required: 1. Complete a separate depreciation schedule for each of the alternative methods. a. Straight-line. b. Units-of-production. c. Double-declining-balance. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Complete a depreciation schedule using the straight-line method. Year Depreciation Expense At acquisition 1 2 3 Accumulated Depreciation Net Book Value

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Lacey Manufacturing is considering replacing one of its machines. You are provided with the following information:             Old Machine:             Original purchase price                    $100,000             Est. annual variable costs                  225,000             Est. selling price                                   25,000             Est. remaining useful life                    5 years         New Machine:             Purchase price                                 $250,000             Est. annual variable costs                  150,000             Est. residual value                                         0             Est. useful life                                      5 years               Determine if the company should keep using the old machine or sell it and replace it with the new machine. Show your work to justify your answer

Gayner Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for November. Variable Actual Fixed Element Element per Total for per Month November Well Serviced 4,300 $ 148,400 Revenue Employee salaries and 1,000 $ 006 wages 009 2$ 20,200 Servicing materials $29,600 30,300 Other expenses When the company prepared its planning budget at the beginning of November, it assumed that 30 wells would have been serviced. However, 34 wells were actually serviced during November. The spending variance for "Servicing materials" for November would have been closest to: MacBook Air い DD 888 delete 8. 6 9 %24 %24 %24 %24 %24