Question 1:

A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable			Fixed
Indirect materials	$90,000		Depreciation	$37,500
Indirect labor	120,000		Taxes	7,500
Factory supplies	15,000		Supervision	30,000

A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of

Question 2:

Use the following table,

	Present Value of an Annuity of 1
Period		8%		9%		10%
1		0.926		0.917		0.909
2		1.783		1.759		1.736
3		2.577		2.531		2.487

A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $379,650 and is expected to generate cash inflows of $150,000 each year for three years. The approximate internal rate of return on this project is