NAME___MD Mahamudul Hasan Rifat___________________

ID___1911315630_______________________

FRANK HENRY WADE, CPA, CIA,CMA,CISA

NorthSouth University

ACC202SEC8 NAC739, Office Hours 2 hours before class,

01706310786 Sec11November18181818-7.4

AMENDMENT VARIANCE ANALYSIS-EXAM 4

Xavier Company produces a single product. Variable manufacturing overhead is applied to products on
the basis of direct labor-hours. The standard costs for one unit of product are as follows:
Direct material: 6 ounces at $0.57 per ounce .................................... $ 3.42
Direct labor: 1.8 hours at $11 per hour .............................................. 19.80
Variable manufacturing overhead: 1.8 hours at $5.10 per hour .............. 9.18
Total standard variable cost per unit .................................................. $32.40

During June, 7,400 units were produced. The costs associated with June’s operations were as follows:
Material purchased: 66,600 ounces at $0.60 per ounce .............. $39,960
Material used in production: 51,800 ounces ................................. —
Direct labor: 14,800 hours at $9.75 per hour .................................. $144,300

Variable manufacturing overhead costs incurred .......................... $76,960

Actual Fixed Overhead $308,000

Budgeted Fixed Overhead (50k machine hours x 6/hour) $300,000

Fixed Overhead Applied to WIP (40k machine hours X $6/hour) $240,000

REQUIRED: DM Rate and Quantity Variance, DL Rate, Efficiency and total variance, Variable Mfg Overhead Rate,
Efficiency, and total variance, Fixed Overhead Budget, Volumne, and total variance SHOW ALL Work
AMENDMENT EXAM 5

1. SIX STEPS NPV ANALYSIS

a)$ 200,000 initial investment，$40,000 cash flow; Hurdle rate 11% ，10 years

1. What is the NPV?

2. What is PI？
3. What is it PV of Gross future annuity flows?
4. What is its annual annuity flows ??
5. What is its IRR, interpolate answer from PV tables?
6. What is its Payback period

4..Discounting of receviables.; Example 40k NR, Interest 13% for 99 months, Discounted at 2%,
What are the proceeds after discounting the Note Receviable.

Do the Journal entries

 AMENDMENT EXAM 6
1.Prices of Bond sold at discount and premium ;TWO Bonds sold.

• 554k Bond , 9 years @14% Interest, MKT rate 10%, yearly

• 226k Bond , 10 years @ 8% Interest, MKT rate 12%, yearly

Do JE for the sales . What is Price of bond (for example 98, 101, 103) for each Bond sale

6)NPV;Daughtery Car Hire: Puzzel of should you buy a car verses rent a car if you are using the car for 2
year. Hurtle rate 4%, your income tax rate is 26%. Consider tax shield of yearly depreciation and tax loss

Buy Car and sell it

You buy a $15,000 Car Bluebook car January year 1, 2012 (period 1)which has a 5 year depreciable life is
sold in year 2 December 2014 (period 24)for Kelly Blue Book value $8000

Insurance on car is $150 monthly,

There is no maintence cost for first month, maintaince is $200 for month 2-8, $210 for months 9-19 ,
$250 for months 20-24

RENTAL CAR

You can rent the same car for $600 monthly. Insurance is the same, no maintence charge.PS CJ
Daughtery called me up in Dubai after I left to complain about “taking advantage” of him. Explain Which
choice buy or rent; is better