Pepper's Pizza is considering adding an additional pizza oven to help meet their increased carryout and delivery demand. The oven would cost $20,000 and require a $500 increase in net operating working capital which will be recovered at the end of the life of the oven.. The oven has a 3-year expected life and falls into the 3-year MACRS depreciation class with the following annual depreciation percentages: yr 1: 33%
yr 2 45%
yr 3 15%
yr 4: 7%
The new oven would increase annual revenues by $20,000 and increased annual operating costs will be 40% of increased revenues. The company's tax rate is 30%. The oven would have a salvage value of $1000 at the end of its 3-year life. What is the year 3 total cash flow (operating + terminal) for this project?
A. 10,300.
B. 10,920.
C. 10,000.
D. 10,800.

Your take on decision making process

Nichols inc. manufactures remote controls. currently the company uses a plantminuswide rate for allocating manufacturing overhead. the plant manager is considering switchingminusover to abc costing system and has asked the accounting department to identify the primary production activities and their cost drivers which are as follows: activities cost driver allocation rate material handling number of parts $5 per part assembly labor hours $20 per hour inspection time at inspection station $10 per minute the current traditional cost method allocates overhead based on direct manufacturing labor hours using a rate of $20 per labor hour. what are the indirect manufacturing costs per remote control assuming an method is used and a batch of 10 remote controls are produced? the batch requires 100 parts, 5 direct manufacturing labor hours, and 3 minutes of inspection time.

The smelting department of kiner company has the following production and cost data for november. production: beginning work in process 3,700 units that are 100% complete as to materials and 23% complete as to conversion costs; units transferred out 10,500 units; and ending work in process 8,100 units that are 100% complete as to materials and 41% complete as to conversion costs. compute the equivalent units of production for (a) materials and (b) conversion costs for the month of november.