Questions from Engineering

Q: A capital-budgeting problem is defined as follows: three projects

A capital-budgeting problem is defined as follows: three projects are to be evaluated at a MARR of 12.5% per year. No more than $3.0 million can be invested. (a) Use a spreadsheet to select from the i...

Q: The net annual operating cost (AOC) for a water treatment

The net annual operating cost (AOC) for a water treatment filtration plant for a semi-conductor fabrication line was estimated to be $1.5 million per year. The estimate was based on the $200,000 per y...

Q: Estimate the cost in 2011 of chemical processing equipment if the cost

Estimate the cost in 2011 of chemical processing equipment if the cost of a unit one-fourth its size was $60,000 in 2005. The exponent in the cost capacity equation is 0.24. Use the M&S equipment cost...

Q: Nicole is an engineer on temporary assignment at a refinery operation in

Nicole is an engineer on temporary assignment at a refinery operation in Seaside. She has reviewed a cost estimate for $430,000, which covers some new processing equipment for the ethylene line. The e...

Q: The Director of Street Maintenance wants to allocate his annual IDC budget

The Director of Street Maintenance wants to allocate his annual IDC budget of $1.2 million to the three divisions around the city. The recorded amounts for this year are as follows: The Director plans...

Q: At Williams Corp., all indirect costs are allocated by accounting.

At Williams Corp., all indirect costs are allocated by accounting. One department manager obtained records for her department of allocation rates and actual charges for the prior 3 months and estimate...

Q: The Mechanical Components Division manager asks you to recommend a make/

The Mechanical Components Division manager asks you to recommend a make/buy decision on a major automotive subassembly that is currently purchased externally for a total of $3.9 million this year. Thi...

Q: CarryALL, Inc., makes and sells small cargo trailers to individuals

CarryALL, Inc., makes and sells small cargo trailers to individuals and small businesses. Since its opening in 1990, it has allocated indirect costs (IDC) to its three manufacturing plants based on di...

Q: The municipal water and desalinization utility in a California city currently allocates

The municipal water and desalinization utility in a California city currently allocates some costs for maintenance shop workers to pumping stations based on the number of pumps at each station. At the...

Q: Historically, The Travel Club has distributed advertising costs to its resort

Historically, The Travel Club has distributed advertising costs to its resort sites in Europe on the basis of the size of the resort budget. For this year, in round numbers, the budgets and allocation...