1. Once set, standards should not be changed during the year. true or false

2. Assuming lower quality (inferior) material is purchased to save on price, which variance is mostly likely to occur? a.Favorable materials quanity variance b.Favorable total overhead variance c.Unfavorable controllable overhead variance d.Unfavorable labor quantity variance

3. A company's cost of funds from creditors and stockholders is the a.hurdle rate b.cost of capital c.cutoff rate d.all of these answers are correct

4. Which of the following considers the time value of money? a.annual rate of return method b.return on stockholders equity method c.cash payback technique d. internal rate of return method

5. Which tables is used for an investment with uneven annual cash flows? a.future value of 1 table b. future value of annuity table c.present value of 1 table d.present value of annuity table

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Compute the price, quantity, and total variances for direct materials of the Wright Co. using the following information for the month of December. Each correct answer is worth point(s) Standard materials price per pound $5.00 Actual pounds of materials purchased and used 16,500 16,000 Standard quantity (pounds) Cost of pounds of materials purchased. $4.80 Actual Quantity x Actual Price Actual Quantity x Standard Price Standard Quantity x Standard Price Price Variance Quantity Variance 1. 2. 3. 4. U or F U or F Total Material Variance 5. 6. U or F Compute the price, quantity, and total variances labor of the Wright Co. using the following information for the month of December. Each correct answer is worth point(s). Actual labor rate per hour $12.25 Actual hours used 18,000 Standard labor rate per hour $12.00 Standard hours allowed 17,100 Actual Hours x Actual Hours x Standard Rate Standard Hours x Standard Rate Actual Rate Price Variance Quantity Variance 2. 3. 4. U or F U or F Total Labor Variance 6. U or F A company is considering purchasing new equipment with the following variables: Cost $900,000 Life 5 years Salvage Value $300,000 Net Income $135,000 Dolo 1. What is the annual rate of return on this investment? a. 15.0% b. 22.5% c. 30.0% Mussina Company had an investment with the following factors Cost $250,000 Life 0 Salvage Value 0 Net Income $15,000 2. What is the annual rate of return on this investment? a. 6.0%. b. 10.2%. c. 12.0%