Computation of Variances and Other Missing Data The following data for O'Keefe Company pertain to the production of 300 units of Product X during December. Selected data items are omitted. Fill in the missing amounts.
Direct materials (all materials purchased were used during period)
Standard cost per unit: AnswerIncorrect
pounds at $3.20 per pound
Total actual cost: AnswerIncorrect
pounds costing $5,676
Standard cost allowed for units produced: $5,760
Materials price variance:
Materials quantity variance: $128 U
Direct labor
Standard cost: 2 hours at $7.00
Actual cost per hour: $7.25
Total actual cost:
Labor rate variance:
Labor efficiency variance: $140 U
Variable overhead
Standard costs:
hours at $4.00 per direct labor hour
Actual cost: $2,250
Variable overhead spending variance:
Variable overhead efficiency variance:

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51