Calculate the payback period for the following scenario: Round your answer to 2 decimal places. Direct Costs• 15 laptops-$1,850/eachA server-$2,100Network installation-$16,500Software-$22,500Indirect Costs• Training-$10,000Annualized BenefitsIncreased capacity-$250,000

Payback period: It is the time within which the initial outlay of a project is recovered.

Answered: Calculate the payback period for the…

Business

Finance

Calculate the payback period for the following scenario: Round your answer to 2 decimal places.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

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What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000
Income Statement Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials ? Direct labor $475,000 Variable overhead 15,000 Fixed overhead 18,000 Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct Materials Inventory Beginning $4,000 Ending 2,600 There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of $45 each next year. Total selling expense is projected at $23,000, and total administrative expense is projected at $53,000.
Income Statement Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house one time) takes a team of three house cleaners about 1.5 hours. On average, HHH completes about 15,000 cleanings per year. The following total costs are associated with the total cleanings: Direct materials ? Direct labor $475,000 Variable overhead 15,000 Fixed overhead 18,000 Next year, HHH expects to purchase $25,600 of direct materials. Projected beginning and ending inventories for direct materials are as follows: Direct Materials Inventory Beginning $4,000 Ending 2,600 There is no work-in-process inventory and no finished goods inventory; in other words, a cleaning is started and completed on the same day. HHH expects to sell 15,000 cleanings at a price of $45 each next year. Total selling expense is projected at $23,000, and total administrative expense is projected at $53,000. Required: 1.…
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Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs: Setting up equipment $3,000 Machining $15,000 The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production. Excellent Laptops Outstanding Computers Direct labor $25,000 $10,000 Direct materials $20,000 $5,000 Expected production in units 3,000 3,000 Machine hours 850 2,000 Setup hours 80 75 Calculate the overhead cost per unit for Excellent Laptops using a plantwide rate based on direct labor costs. (Note: Round the overhead rateto two decimal places; round the final answer to two decimal places.)
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PROBLEM 1 The School of Management and Accountancy is planning to begin an online MSA (Master of Science in Accountancy) program. The initial start-up costs for computing equipment, facilities, course development, and staff recruitment and development are P350,000. The school plans to charge tuition of P18,000 per student per year. However, the university administration will charge the school P12,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments. Required: PROVIDE A DETAILED EXCEL SOLUTION a. How many students does the school need to enroll in the first year to break even? b. If the school can enroll 75 students the first year, how much profit will it make? c. The school believes it can increase tuition to P24,000, but doing so would reduce enrollment to 35. Should the school consider doing this?
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