s of $40,000 each year, the cash payback period is

Defining the benefits of setting cost standards and calculating materials and labor variances Murry, Inc. produced 1,000 units of the company’s product in 2018. The standard quantity of direct materials was three yards of cloth per unit at a standard cost of $1.35 per yard. The accounting records showed that 2,500 yards of cloth were used and the company paid $1.40 per yard. Standard time was two direct labor hours per unit at a standard rate of $10.00 per direct labor hour. Employees worked 1,700 hours and were paid $9.50 per hour. Requirements What are the benefits of setting cost standards? Calculate the direct materials cost variance and the direct materials efficiency variance as well as the direct labor cost and efficiency variances.

What must the annual earnings be from a new piece of equipment that costs $10 million and has a projected operating life of 10 years? Assume the salvage value is $800,000 at the end of year 10. Use an interest rate of 10% compounded annually.

Determine the internal rate of return for an equipment that costs $150,000 and would provide positive cash flows of $60,000 , $50,000, $40,000, and $40,000  at the end of each year for the next four years.