Hobart Industries is trying to estimate its first-year operating cash flow (at t = 1) for a proposed project. The financial staff has collected the following Information: Projected sales $3,000,000
Operating costs 1,200,000
Depreciation 450,000
Interest expense 330,000
The company faces a 40% tax rate, what is the project's operating cash flow for the first year (t -1)?
a. $810,000.
b. $1,080,000.
c. $1,500,000.
d. $1,800,000.
e. $1,260,000.

Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget.the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead.a total of 119,300 units, using 478,000 direct labor hours, were produced during the year.actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.