Your company is contemplating the purchase of a large stamping machine. The machine will cost $180 comma 000180,000. With additional transportation and installation costs of $5 comma 0005,000 and $9 comma 0009,000, respectively, the cost basis for depreciation purposes is $194 comma 000194,000. Its MV at the end of five years is estimated as $31 comma 00031,000. The IRS has assured you that this machine will fall under a three year MACRS class life category. The justifications for this machine include $45 comma 00045,000 savings per year in labor and $28 comma 00028,000 savings per year in reduced materials. The before-tax MARR is 1414% per year, and the effective income tax rate is 3535%. What is the taxable income for year threethree?

4. the condition requires that only one of the selected criteria be true for a record to be displayed.

Is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) cooptation (b) coalition (c) competitive intelligence (d) competitive aggression (e) smoothing

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?