Dilwater furniture purchased a corner lot in pittsburg five years ago at a cost of $890,000. the lot was recently appraised at $1,070,000. at the time of the purchase, the company spent $80,000 to grade the lot and another $120,000 to pave the lot for commuter parking. the company now wants to build a new retail store on the site. the building cost is estimated at $1.8 million. what amount should be used as the initial cash flow for this building project?

Harris fabrics computes its predetermined overhead rate annually on the basis of direct labor-hours. at the beginning of the year, it estimated that 34,000 direct labor-hours would be required for the period’s estimated level of production. the company also estimated $599,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. harris's actual manufacturing overhead for the year was $768,234 and its actual total direct labor was 34,500 hours. required: compute the company's predetermined overhead rate for the year. (round your answer to 2 decimal places.)