The standard cost of product 5252 includes 1.90 hours of direct labor at $13.20 per hour....

 

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The standard cost of product 5252 includes 1.90 hours of direct labor at $13.20 per hour. The predetermined overhead rate is $22.00 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $13.40 per hour and $82,600 of manufacturing overhead costs. It produced 2,000 units. (a) Compute the total, price, and quantity variances for labor. Total labor variance Labor price variance Labor quantity variance A +A (b) Compute the total overhead variance. Total overhead variance $ Bonita Corporation has decided to invest in renewable energy sources to meet part of its energy needs for production. It is considering solar power versus wind power. After considering cost savings as well as incremental revenues from selling excess electricity into the power grid, it has determined the following. Solar Wind Present value of annual cash flows $54,234 $134,912 Initial investment $39,300 $105,400 Determine the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to O decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25.) Net present value Profitability index Solar Which energy source should it choose? The company should choose energy source. Wind The standard cost of product 5252 includes 1.90 hours of direct labor at $13.20 per hour. The predetermined overhead rate is $22.00 per direct labor hour. During July, the company incurred 4,000 hours of direct labor at an average rate of $13.40 per hour and $82,600 of manufacturing overhead costs. It produced 2,000 units. (a) Compute the total, price, and quantity variances for labor. Total labor variance Labor price variance Labor quantity variance A +A (b) Compute the total overhead variance. Total overhead variance $ Bonita Corporation has decided to invest in renewable energy sources to meet part of its energy needs for production. It is considering solar power versus wind power. After considering cost savings as well as incremental revenues from selling excess electricity into the power grid, it has determined the following. Solar Wind Present value of annual cash flows $54,234 $134,912 Initial investment $39,300 $105,400 Determine the net present value and profitability index of each project. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round present value answers to O decimal places, e.g. 125 and profitability index answers to 2 decimal places, e.g. 15.25.) Net present value Profitability index Solar Which energy source should it choose? The company should choose energy source. Wind