1. farfetched, inc. thinks it can save $12,000 per year, after tax, over a four-year period if it starts using direct email instead of direct snail mail. a consultant that they’ve been working with will set up the spam email process for them for a fee of $40,000. there will be no changes in any of the capital asset or current accounts. farfetched requires a return of 9%. should they make the investment?

Warner inc. sells a high-speed retrieval system for mining information. it provides the following information for the year. budgeted actual overhead cost $965,700 $905,000 machine hours 58,570 49,200 direct labor hours 107,300 104,200 overhead is applied on the basis of direct labor hours. compute the predetermined overhead rate. predetermined overhead rate $ per direct labor hour link to text determine the amount of overhead applied for the year. the amount of overhead applied $