Whatney Co. is considering the acquisition of a new, more ef…

Whatney Co. is considering the acquisition of a new, more efficient press. The cost of the press is $360,000, and the press has an estimated 6-year life with zero salvage value. Whatney uses straight-line depreciation for both financial reporting and income tax reporting purposes and has a 40% corporate income tax rate. In evaluating equipment acquisitions of this type, Whatney uses a goal of a 4-year payback period. To meet Whatney’s desired payback period, the press must produce a minimum annual before-tax operating cash savings of

This question and the following question is based on the fol…

This question and the following question is based on the following information. Soard, Inc. manufactures a product that has the direct materials standard presented below. Budgeted and actual information for the current month for the manufacture of the finished product and the purchase and use of the direct materials is also presented.  Standard cost for direct materials: 1.60 lb. @ $2.50 per lb.                                                                                                Budget             Actual Finished goods (in units)                                                         30,000             32,000 Direct materials usage (in pounds)                                             ?                   51,000 Direct materials purchases (in pounds)                                   48,000             50,000 Total cost of direct materials purchases                                     ?                  120,000 Soard’s direct materials price variance for the current month is: