The following direct materials data pertain to the operations of Cheyenne Co. for the month of December.Standard materials priceActual quantity of materials purchased and usedThe standard cost card shows that a finished product contains 4 pounds of materials. The 16,550 pounds were purchased in Decemberat a discount of 4% from the standard price. In December, 4,050 units of finished product were manufactured.Calculate the materials variances. Identify whether each variance is favorable or unfavorable.Materials Price VarianceMaterials Quantity VarianceTotal Materials VarianceSave for LaterO185D$$$5.00 per pound16,550 poundsSVVAttempts: 0 of 1 usedSubmit Answer Sunland Inc. manufactures snowsuits. Sunland is considering purchasing a new sewing machine at a cost of $2.45 million. Its existingmachine was purchased 5 years ago at a price of $1.8 million; six months ago, Sunland spent $55,000 to keep it operational. Theexisting sewing machine can be sold today for $244,395. The new sewing machine would require a one-time, $85,000 training cost.Operating costs would decrease by the following amounts for years 1 to 7:Year 1234567$389,500400,400410,500425,400O433,000435,400436,600The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage valueexpected to be $379,200. This new equipment would require maintenance costs of $98,000 at the end of the fifth year. The cost ofcapital is 9%.Click here to view PV table.Use the net present value method to determine the following: (If net present value is negative then enter with negative signi preceding thenumber eg.-45 or parentheses e.g. (45). Round present value answer to 0 decimal places, e.g. 125. For calculation purposes, use 5 decimalplaces as displayed in the factor table provided.)Calculate the net present value.Net present value!!!(S"US

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The following direct materials data pertain to the operations of Cheyenne Co. for the month of December. Standard materials price Actual quantity of materials purchased and used The standard cost card shows that a finished product contains 4 pounds of materials. The 16,550 pounds were purchased in December at a discount of 4% from the standard price. In December, 4,050 units of finished product were manufactured. Calculate the materials variances. Identify whether each variance is favorable or unfavorable. Materials Price Variance $5.00 per pound 16,550 pounds S

The following direct materials data pertain to the operations of Cheyenne Co. for the month of December. Standard materials price Actual quantity of materials purchased and used The standard cost card shows that a finished product contains 4 pounds of materials. The 16,550 pounds were purchased in December at a discount of 4% from the standard price. In December, 4,050 units of finished product were manufactured. Calculate the materials variances. Identify whether each variance is favorable or unfavorable. Materials Price Variance $5.00 per pound 16,550 pounds S

Cornerstones of Cost Management (Cornerstones Series)

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Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

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Problem 31P: Jonfran Company manufactures three different models of paper shredders including the waste...

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Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $240,438. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 2 3 4 5 6 7 No $390,900 399,800 410,100 425,400 434,000 434,900 436,400 The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $379,100. This new equipment would require maintenance costs of $94,000 at the end of the fifth year. The cost of capital is 9%. Click here to view the factor table. Use the net present value method to determine the following: (If net present value is negative then enter with negative sign preceding the number…
Oriole Inc. manufactures snowsuits. Oriole is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased 5 years ago at a price of $1.8 million; six months ago, Oriole spent $55,000 to keep it operational. The existing sewing machine can be sold today for $211,855. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 2 3 4 5 6 7 $390,600 399,400 411,000 425.900 432,000 434,600 436,400 The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $379,400. This new equipment would require maintenance costs of $94,200 at the end of the fifth year. The cost of capital is 9%. Click here to view PV table
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Hillsong Inc. manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased five years ago at a price of $1.8 million; six months ago, Hillsong spent $55,000 to keep it operational. The existing sewing machine can be sold today for $250,000. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7: Year 1 $390,000 2 400,000 3 411,000 4 426,000 5 434,000 6 435,000 7 436,000 The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $400,000. This new equipment would require maintenance costs of $100,000 at the end of the fifth year. The cost of capital is 9%
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An automobile manufacturer is considering a change in an assembly line that should save moneyby reducing labor and material cost. The change involves the installation of four new robots thatwill automatically install windshields. The cost of the four robots, including installation and initial programming, is $400,000. Current practice is to amortize the initial cost of robots over two years on a straight-line basis. The process engineer estimates that one full-time technician will be needed to monitor, maintain, and reprogram the robots on an ongoing basis. This person will cost approximately $60,000 per year. Currently, the company uses four full-time employees on this job and each makes about $52,000 per year. One of these employees is a material handler, and this person will still be needed with the new process. To complicate matters, the process engineer estimates that the robots will apply the windshield sealing material in a manner that will result in a savings of $0.25 per…
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