Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500. The total fixed overhead budgeted for the coming year is $832,500. Predetermined overhead rates are calculated using expected production, measured in direct labor hours. Actual results for the year are: Actual production (units) 594,000 Actual variable overhead $928,000 Actual direct labor hours (AH) 446,000 Actual fixed overhead $835,600 1. Compute the applied fixed overhead 2. Compute the fixed overhead spending and volume variances 3 Compute the applied variable overhead 4. Compute the variable overhead spending and efficiency variances.

The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead:

1. The variable overhead spending variance is:

2. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:

3. Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance is:

Silver Sun Aviation is considering a project that would last for 2 years and have a cost of capital of 17.06 percent. The relevant level of net working capital for the project is expected to be 16,000 dollars immediately (at year 0); 12,000 dollars in 1 year; and 0 dollars in 2 years. Relevant expected revenue, costs, depreciation, and cash flows from capital spending in years 0, 1, and 2 are presented in the following table (in dollars). The tax rate is 50 percent. What is the net present value of this project?

there's a table with all the values above

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $3,170,000 this year. Depreciation, the increase in net working capital, and capital spending are expected to be $241,000, $106,000, and $495,000, respectively. You expect that over the next five years, EBIT will grow at 15 percent per year, depreciation and capital spending will grow at 20 percent per year, and NWC will grow at 10 percent per year. The company currently has $18.3 million in debt and 380,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 8.9 percent and the tax rate is 22 percent.

What is the price per share of the company's stock?

Principles of Macroeconomics

Discussion: Fiscal Policy
Please respond with a minimum of 100 words

Compare and contrast the use of government spending changes versus tax changes as a means of influencing the course of the economy. Is one or the other preferable in specific situations? Imagine for a moment that you have two roommates, who each have opposing viewpoints on nearly everything, including politics and economics. Taylor is adamant that the best way to manage the economy is through tax changes, while Morgan insists that it’s better to adjust the economy through government spending. What would a Neoclassical economist say? What would a Keynesian economist say? Which roommate do you agree with, and why? Find a news article to help support your opinion. Summarize the article and include the link to in your response.

This week, you will discuss how you are affected by fiscal policy. For instance, you could write about how infrastructure projects in your community affect you and your community, and then how they affect the economy as a whole.

1. Please identify and explain an important infrastructure project in your city, state, or region that is currently underway or being discussed. Such a project could be an airport, a highway, a bridge, a light rail or subway system, a tunnel, new school buildings, new landfills and so on.
2. Please include information about the expected costs of the project, and how public spending on the project could stimulate the economy in your area. How would the multiplier effect work here? Do you think that spending on such a project would create new jobs beyond the project itself?

OVERHEAD APPLICATION, FIXED AND VARIABLE OVERHEAD VARIANCES

Tules Company is planning to produce 2,400,000 power drills for the coming year. The company uses direct labour hours to assign overhead to products. Each drill requires 0.5 standard hour of labour for completion. The total budgeted overhead was $2,700,000. The total fixed overhead budgeted for the coming year is $1,320,000. Predetermined overhead rates are calculated using expected production, measured in direct labour hours. Actual results for the year are:

Actual production (units)      2,360,000

Actual direct labour hours    1,190,000

Actual variable overhead   $1,410,000

Actual fixed overhead         $1,260,000

Required:

1. Compute the applied fixed overhead.

2. Compute the fixed overhead spending and efficiency variances.

3. Compute the applied variable overhead.

4. Compute the variable overhead spending and volume variances.

1.5 TRACE THROUGH THE SHORT-RUN, INTERMEDIATE, AND LONG-RUN EFFECTS OF AN INCREASE IN CONSUMER WEALTH. (REMEMBER THERE ARE SEVERAL AD DETERMINANTS. BE ABLE TO DO THIS QUESTION FOR ANY OF THEM—THINGS LIKE CONSUMER OPTIMISM, CONSUMER PESSIMISM, DECREASES IN WEALTH, DECREASE IN HOUSEHOLD INDEBTEDNESS, INCREASE IN HOUSEHOLD TAXES, DECREASES IN HOUSEHOLD TAXES, INCREASED EXCESS CAPACITY OF CAPITAL, DECREASED EXCESS CAPACITY OF CAPITAL, INCREASES IN THE COST OF MAINTAINING CAPITAL, DECREASES IN THE COST OF MAINTAINING CAPITAL, INCREASES IN GOV’T SPENDING, DECREASES IN GOV’T SPENDING, INCREASES IN INCOME ABROAD, DECREASED VALUE OF CURRENCY, ETC). USE MONETARY POLICY TO OFFSET THE RESULTING BUSINESS CYCLE. INCLUDE A GRAPH AND EXTENDED 4-STEP ANALYSIS.

1)start:

2)Shock:

3)Shift:

4)Result: Short Run

Intermediate

Long Run

you have looked at the current financial statements for reigie homes co. the company has an ebit of 3130000 this year. depreciation the increase in net working capital, and capital spending are expected to be 239,000, 104,000 and 485,000 respectively. you expected that over the next five years, ebit will grow at 20 percent per year, depreciation and capital spending will grow at 25 percent per year, and nwc will grow at 15 percent per year. the company currently has 17.9 million in debt and 515,000 shares outstanding. after year 5 the adjusted cash flow from assets is expected to grow at 3.5 percent indefinitely. the company's wacc is 8.7 percent and the tax rate is 25 percent. what is the price per share of the company's stock