Training costs for workers who will operate the machine | 16000 |
Ordinary repairs to the machine before the first production run | 1000 |
Cost of platform used to properly secure the machine | 30000 |
Cost of trial run which took place before the first production run | 13000 |
Cost of the machine | 60000 |
Option B $60,000 is correct |
Dorman Company purchased a new machine for its production process. The following costs were incurred for...
New project analysis Garcia's Truckin' Inc. is considering the purchase of a new production machine for $300,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $40,000 per year. To operate the machine properly, workers would have to go through a brief training session that would cost $7,000 after taxes. It would cost $4,000 to install the machine properly. Also, because this machine is extremely efficient, its purchase would necessitate an...
(New project analysis) Garcia's Truckin' Inc. is considering the purchase of a new production machine for $150,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $40,000 per year. To operate the machine properly, workers would have to go through a brief training session that would cost $5,000 after taxes. It would cost$6,000 to install the machine properly. Also, because this machine is extremely efficient, its purchase would necessitate an increase in...
(New project analysis) Garcia's Truckin' Inc. is considering the purchase of a new production machine for $250,000.The purchase of this machine will result in an increase in earnings before interest and taxes of $60,000 per year. To operate the machine properly, workers would have to go through a brief training session that would cost $3,000 after taxes. It would cost $6,000 to install the machine properly. Also, because this machine is extremelyefficient, its purchase would necessitate an increase in inventory...
(New project analysis) Garcia's Truckin' Inc. is considering the purchase of a new production machine for $150,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $60,000 per year. To operate the machine properly, workers would have to go through a brief training session that would cost $7,000 after taxes. It would cost $6,000 to install the machine properly. Also, because this machine is extremely efficient, its purchase would necessitate an increase...
Garcia's Truckin' Inc. is considering the purchase of a new production machine for $150,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $60,000 per year. To operate the machine properly, workers would have to go through a brief training session that would cost $4,000 after taxes. It would cost $4,000 to install the machine properly. Also, because this machine is extremely efficient, its purchase would necessitate an increase in inventory of...
Raymobile Motors is considering the purchase of a new production machine for $500,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $150,000 per year. To operate this machine properly, workers would have to go through a brief training session that would cost $25,000 after tax. In addition, it would cost $5,000 after tax to install this machine correctly. Also, because this machine is extremely efficient, its purchase would necessitate an increase...
Raymobile Motors is considering the purchase of a new production machine for 350,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $120,000 per year. To operate this machine properly, workers would have to go through a brief training session that would cost $27,000 after tax. In addition, it would cost $4,000 after tax to install this machine correctly. Also, because this machine is extremely efficient, its purchase would necessitate an...
Classifying Costs The following is a list of costs that were incurred in the production and sale of lawn mowers. Classify each of the costs as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Attorney fees for drafting a new lease for headquarter offices b....
A company incurred the following costs for a new delivery truck: Purchase price Sales tax Delivery charge from seller's location Special racks for storage Normal repairs to the truck before it was used for the first time Signs painted on the truck Insurance on truck before it was used for the first time What is the cost of the delivery truck? $120,000 7,200 1,500 3,000 1,100 2,000 3,000 O A. $128,700 OB. $130,700 O c. $133,700 OD. $137,800
A new machine costs $25,000 and has the estimated maximum (physical) life of 5 years. It also has the estimated salvage (market) value (S) and operating and maintenance costs (O&M) in each of the 5 years of use as shown below: Year n Sn O&Mn EACn 0 $25,000 1 $16,000 $5,000 $16,000 2 $13,000 $8,000 $14,212 3 $11,000 $11,000 $14,159 4 $10,000 $14,000 $14,541 5 $9,500 $17,000 $15,181 MCn $16,000 $12,280 $14,040 $15,880 $18,300 Suppose the MARR is 8%. The...