The following data is given for the zoyza company: budgeted production (at 100% production capacity) 26,000 unitsactual production 27,500 unitsmaterials: standard price per ounce $6.50 standard ounces per completed unit 8 actual ounces purchased and used in production 228,000 actual price paid for materials $1,504,800labor: standard hourly labor rate $22 per hour standard hours allowed per completed unit 6.6 actual labor hours worked 183,000 actual total labor costs $4,020,000overhead: actual and budgeted fixed overhead $1,029,600 standard variable overhead rate $24.50 per standard labor hour actual variable overhead costs $4,520,000 overhead is applied on standard labor hours. the factory overhead controllable variance is: a $73,250fb $73,250uc $59,400fd $59,400u

Goals that are overly ambitious can discourage employees and decrease motivation, yet the idea of stretch goals is proposed as a way to get people fired up and motivated. as a manager, how might you decide where to draw the line between a “good” stretch goal and a “bad” one that is unrealistic?

Alicia has a collision deductible of $500 and a bodily injury liability coverage limit of $50,000. she hits another driver and injures them severely. the case goes to trial and there is a verdict to compensate the injured person for $40,000 how much does she pay?

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?