22.

The following data is given for the Stringer Company:

Budgeted production	917 units
Actual production	1,002 units
Materials:
Standard price per ounce	$1.75
Standard ounces per completed unit	11
Actual ounces purchased and used in production	11,353
Actual price paid for materials	$23,274
Labor:
Standard hourly labor rate	$14.38 per hour
Standard hours allowed per completed unit	5.0
Actual labor hours worked	5,160.3
Actual total labor costs	$78,695
Overhead:
Actual and budgeted fixed overhead	$1,124,000
Standard variable overhead rate	$28.00 per standard labor hour
Actual variable overhead costs	$144,488
Overhead is applied on standard labor hours.

The direct materials quantity variance is

a.3,406.25 favorable

b.3,406.25 unfavorable

c.579.25 unfavorable

d.579.25 favorable

35.

Below is a table for the present value of $1 at compound interest.

Year	6%	10%	12%
1	0.943	0.909	0.893
2	0.890	0.826	0.797
3	0.840	0.751	0.712
4	0.792	0.683	0.636
5	0.747	0.621	0.567

Below is a table for the present value of an annuity of $1 at compound interest.

Year	6%	10%	12%
1	0.943	0.909	0.893
2	1.833	1.736	1.690
3	2.673	2.487	2.402
4	3.465	3.170	3.037
5	4.212	3.791	3.605

Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, what would be the present value of the investment cash inflows, assuming an earnings rate of 12%?

a.$22,190

b.$20,352

c.$21,259

d.$3,969

41.

A setup is the time required to prepare an operation for a new production run.

True

False