Kaia Co. purchased a new manufacturing machine for $605,000. The machine was shipped from Europe at a cost of $11,000. Kaia also paid $7,000 in custom fees. The machine was secured to the building foundation at a cost of $2,000. It is estimated that the machine will have a $25,000 salvage value at the end of its 4-year useful service life. The maximum estimated production is 30,000: 12,000 in year one, 8,000 in year two, 6,000 in year three, and 4,000 in year four, respectively. Instructions: Compute the total cost, then using the straight line, units of activity, prepare a schedule that shows the 1) annual depreciation expense, 2) annual accumulated depreciation, and 3) net book value on the machine for each of the years in its 4-year life.

Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 2.0 grams $ 7.00 per gram direct labor 1.6 hours $ 12.00 per hour variable overhead 1.6 hours $ 6.00 per hour the company produced 5,000 units in january using 10,340 grams of direct material and 2,320 direct labor-hours. during the month, the company purchased 10,910 grams of the direct material at $7.30 per gram. the actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour. the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for january is: