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Engr 301 Assignment Submission

ENGR 301/4 - Assignment 8 Deadline: due 17:30 (5:30 pm), Monday April , 2013 Assignments must be submitted on-line using the multiple choice answer sheet on the Moodle course website. No submissions will be accepted after the deadline. Question 8-1 Manufacturing equipment was acquired for $12,000. Determine the undepreciated capital cost of this equipment after 3 years of depreciation using CCA depreciation as a Class 43 asset. (Hint: Use the CCA classes and rates posted on the course website)  $5880  $4998  $7140  $4116 Answer: UCC 3 = $12,000(1–0.3/2)(1–0.3) 2 = $4,998 The complete depreciation scheme for 4 years is as follows: Year UCC at start of year CCA Rate Depreciation Charge for year t = d t UCC at end of year t 1 $ 12,000 15% $ 1,800 $ 10,200 2 $ 10,200 30% $ 3,060 $ 7,140 3 $ 7,140 30% $ 2,142 $ 4,998 4 $ 4,998 30% $ 1,499 $ 3,499 Note the 50% rule or half-year convention in year 1. Question 8-2 On July 1, 2000 Sarah Engineer paid $600,000 for a commercial building made of brick and an additional $150,000 for the land on which the building stands. Compute the UCC at the end of year 2.

Unformatted text preview: ENGR-301 Assignment 3 Assignments must be submitted ONLINE on the course website (using Moodle) Due 23:59 Thursday (28-May-2015) Check the best answer (closest to the exact answer such that the absolute value |answer given – exact answer| is minimum) for each question. 3-1 Your company intends to purchase a 400 tonne capacity injection moulding machine. A similar machine was purchased eight years ago for $89,500. The price index for heavy duty equipment in the plastics industry was 163.6 eight years ago and is 207.6 now. Estimate the current cost of the machine. ($125,000 $113,000 $108,000 $98,000) 3-2 – 3-3 Nadia, John, Saba and Kumar are working together on a project. These are the data for each: Nadia: 60 hours, overhead rate 75%, personal time 10%, $20/hr John: 80 hours, overhead rate 55%, personal time 12%, $40/hr Saba: 80 hours, overhead rate 75%, personal time 10%, $36/hr Kumar: 40 hours, overhead rate 55%, personal time 12%, $20/hr 3-2 Who has the highest direct labour costs? 3-3 Calculate the total direct labour costs (Nadia John Saba Kumar) ($14,800 $14,000 $15,100 $14,300) 3-4 – 3-6 Weldex Industries begins to manufacture a newly designed, small, spot welding machine. The labour hours required for making the second and third units are 28.6 and 28.2 hours respectively. 3-4 Calculate the labour hours required to manufacture the first unit. (28.8 29.1 29.3 29.5) 3-5 Calculate the labour hours required to manufacture the 50th unit. (29.3 27.9 25.5 23.8) 3-6 If labour costs are $18/hour, calculate the total labour costs to produce the first four machines ($1900 $1950 $2000 $2050) 3-7 – 3-10 A 50-mgpd (million gallons per day) water treatment plant was proposed in 2013 for Ureka. A 60mgpd plant using the same treatment process was built in 2007 in Vancouver for $50,000,000. Given the following additional information and assumptions: • • • • • • Poor site condition in Vancouver required an additional $3,000,000 for foundations, which is not anticipated for Ureka. Assume the power sizing size exponent = 0.67. Assume inflation will persist at an average 4% per annum. Assume the location index for Vancouver is 1.17 and 1.24 for Ureka. A new high-pressure filter process will be added at Ureka at an additional cost of $4,000,000. The construction period for the new plant will include winter construction. The Vancouver plant was not constructed through a winter season. Assume an increase in construction costs for Ureka of 12%. In order to make an order of magnitude estimate of the water treatment plant in Ureka, various multiplication factors need to be calculated. 3-7 Calculate the multiplication factor based on the different capacities (0.80 0.90 1.00 1.10) 3-8 Calculate the multiplication factor based on effect of inflation (1.37 1.22 1.42 1.27) 3-9 Calculate the multiplication factor based on the different location indexes (1.07 1.03 0.99 0.95) 3-10 Calculate the order of magnitude estimate of the water treatment in Ureka (35M 50M 65M 85M) ...
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