Stone Company uses a standard costing system that allows 2.0…

Stone Company uses a standard costing system that allows 2.0 pounds of direct materials for one finished product unit. During July, the company purchased 44,000 pounds of direct materials for $277,200, and manufactured 12,400 finished units. The standard direct materials cost allowed for the units manufactured is $148,800. The performance report shows that Stone has an unfavorable variance in direct materials usage of $4,900. Also, the company records any price variance for materials at the time of purchase.What was the flexible material variance?

A firm is evaluating a proposed project with a 4-year life….

A firm is evaluating a proposed project with a 4-year life. The project requires an initial investment in equipment of $500,000. The equipment will be depreciated on a straight-line basis to zero over the 4 years. In addition, the project requires an increase in net working capital of $40,000 at the start of the project, which will be fully recovered at the end of Year 4. The project is expected to generate operating cash flows of $180,000 in Year 1, $200,000 in Year 2, $210,000 in Year 3, and $190,000 in Year 4. The firm’s tax rate is 30%, and the project’s cost of capital is 10%. At the end of Year 4, the equipment is expected to have an after-tax salvage value of $56,000. Calculate the project’s Internal Rate of Return (IRR).