Marco Company shows the following costs for three jobs worked on in April.Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at

a $$503,000$ cost with an expected four$-$year life and a $$20,000$ salvage value. Additional annual information for this new product line

follows. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Determine income and net cash flow for each year of this machine's life.

Compute this machine's payback period, assuming that cash flows occur evenly throughout each year.

Compute net present value for this machine using a discount rate of $7\%.$

Additional Information

a$.$ Raw Materials Inventory has a March $31$ balance of $$83,200.$

b$.$ Raw materials purchases in April are $$508,000,$ and total factory payroll cost in April is $$371,000.$

c$.$ Actual overhead costs incurred in April are indirect materials, $$52,000$; indirect labor, $$25,000$; factory rent,

$$34,000$; factory utilities, $$21,000$; and factory equipment depreciation, $$53,000.$

d$.$ Predetermined overhead rate is $50\%$ of direct labor cost.

e$.$ Job $306$ is sold for $$643,000$ cash in April.

a$.$ Materials purchases $($on credit$).$

b$.$ Direct materials used.

c$.$ Direct labor used $($and paid in cash$)$ and assigned to Work in Process Inventory.

d$.$ Indirect materials used and assigned to Factory Overhead.

e$.$ Indirect labor used $($and paid in cash$)$ and assigned to Factory Overhead.

f$.$ Overhead costs applied to Work in Process Inventory.

g$.$ Actual other overhead costs incurred $($Factory rent and utilities are paid in cash.$)$

h$.$ Transfer of Jobs $306$ and $307$ to Finished Goods Inventory.

i$.$ Cost of goods sold for Job $306.$

j$.$ Revenue from the sale of Job $306$ received in cash.

k$.$ Close underapplied or overapplied overhead to the Cost of Goods Sold account.Marco Company shows the following costs for three jobs worked on in April.

Additional Information

a$.$ Raw Materials Inventory has a March $31$ balance of $$85,600.$

b$.$ Raw materials purchases in April are $$514,000,$ and total factory payroll cost in April is $$377,000.$

c$.$ Actual overhead costs incurred in April are indirect materials, $$53,500$; indirect labor, $$26,500$; factory rent,

$$35,500$; factory utilities, $$22,500$; and factory equipment depreciation, $$54,500.$

d$.$ Predetermined overhead rate is $50\%$ of direct labor cost.

e$.$ Job $306$ is sold for $$649,000$ cash in April.

Required:

Determine the amount of overhead applied to each job in April.