skip to Main Content

The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

1. Uncertain Future Cash Flows
Union Bay Plastics is investigating the purchase of automated
equipment that would save $100,000 each year in direct labor and inventory carrying
costs. This equipment costs $750,000 and is expected to have a 10-year
useful lift with no salvage value. The companys required rate of
return is 15% on all equipment purchases. This equipment would provide
intangible benefits such as greater flexibility and higher-quality output
that are difficult to estimate and yet are quite significant.
Required:
(Ignore income taxes)
What dollar value per year would the intangible benefits have to
have in order to make the equipment an acceptable investment?

2. Production Budget
Chrystal Telecom has budgeted the sales of its innovative mobile
phone over the next four months as follows:

Sales in Units

July30,000
August.45,000
September..60,000
October.50,000

The company is now in the process of preparing a production
budget for the third quarter. Past experience has shown that
end-of-month finished goods inventories must equal 10% of the next months
sales. The inventory at the end of Jun was 3,000 units.
Required:
Prepare a production budget for the third quarter showing the
number of units to be produced each month and for the quarter in total.

3. Manufacturing Overhead
Budget
The direct labor budget of Krispin Corporation for the upcoming
fiscal year includes the following budgeted direct labor-hours.

1st
quarter 2nd quarter 3rd
quarter 4th quarter

Budgeted direct
labor-hours.
5,000
4,800
5,200 5,400

The companys variable manufacturing overhead rate is $1.75 per
direct labor-hour and the companys fixed manufacturing overhead is $35,000
per quarter. The only noncash item included in fixed manufacturing overhead
is depreciation, which is $15,000 per quarter.
Required:
1.
Construct the
companys manufacturing overhead budget for the upcoming fiscal year.
2. Compute the companys manufacturing overhead
rate (including both variable and fixed manufacturing overhead) for the
upcoming fiscal year. Round off to the nearest whole cent.

4. Residual Income
Midlands Design Ltd. Of Manchester, England, is a company
specializing in providing design services to residential developers.
Last year the company had net operating income of 400,000 on sales of
2,000,000. The companys average operating assets for the year were
2,200,000 and its minimum required rate of return was 16%. (The
currency in the United Kingdom is the pound, denoted by )
Required:Compute
the companys residual income for the year.

1.

1. Uncertain Future Cash Flows Union Bay Plastics is investigating the purchase of automated
equipment that would save $100,000 each year in direct labor and inventory carrying
costs. This equipment costs $750,000 and is expected to have a 10-year
useful lift with no salvage value. The companys required rate of
return is 15% on all equipment purchases. This equipment would provide
intangible benefits such as greater flexibility and higher-quality output
that are difficult to estimate and yet are quite significant.Required:(Ignore income taxes)What dollar value per year would the intangible benefits have to
have in order to make the equipment an acceptable investment?2. Production Budget Chrystal Telecom has budgeted the sales of its innovative mobile
phone over the next four months as follows:Sales in UnitsJuly30,000August.45,000September..60,000October.50,000The company is now in the process of preparing a production
budget for the third quarter. Past experience has shown that
end-of-month finished goods inventories must equal 10% of the next months
sales. The inventory at the end of Jun was 3,000 units.Required:Prepare a production budget for the third quarter showing the
number of units to be produced each month and for the quarter in total. 3. Manufacturing Overhead
Budget The direct labor budget of Krispin Corporation for the upcoming
fiscal year includes the following budgeted direct labor-hours.
1st
quarter 2nd quarter 3rd
quarter 4th quarterBudgeted direct
labor-hours.
5,000
4,800
5,200 5,400The companys variable manufacturing overhead rate is $1.75 per
direct labor-hour and the companys fixed manufacturing overhead is $35,000
per quarter. The only noncash item included in fixed manufacturing overhead
is depreciation, which is $15,000 per quarter.Required:1.
Construct the
companys manufacturing overhead budget for the upcoming fiscal year.2. Compute the companys manufacturing overhead
rate (including both variable and fixed manufacturing overhead) for the
upcoming fiscal year. Round off to the nearest whole cent.4. Residual IncomeMidlands Design Ltd. Of Manchester, England, is a company
specializing in providing design services to residential developers.
Last year the company had net operating income of 400,000 on sales of
2,000,000. The companys average operating assets for the year were
2,200,000 and its minimum required rate of return was 16%. (The
currency in the United Kingdom is the pound, denoted by )Required:Compute
the companys residual income for the year. 1.

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don't hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®