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### 2. How much overhead was applied to production during the year (Ans.pdf

1. 2. How much overhead was applied to production during the year? (Answer is not 306,507 even though I thought it would be since that is the Actual hours worked x Predetermined overhead rate) Overhead applied \$ 3. Using one or more answers above, what were the total costs assigned to work in process? Total costs assigned \$ 4. Mark Barton owns a garage and is contemplating purchasing a tire retreading machine for \$26,000. After estimating costs and revenues, Mark projects a net cash flow from the retreading machine of \$4,400 annually for 8 years. Mark hopes to earn a return of 8 percent on such investments. What is the present value of the retreading operation? Solution Not complete information on 2 and 3 are available 4 Net present value calculation Here is the annuity value of 8% return for 8 years 5.746639 PV of cash inflow = \$4,400 x 5.746639 = \$25,285.21 Investment = \$26,000 Present value of retreading operation = (\$714.7884) 11.080.92592621.16640.85733931.2597120.79383241.3604890.7350351.4693280.68058361.58 68740.6301771.7138240.5834981.850930.540269 5.746639
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