Supplemental Instruction Acct 201B Use the following information for the following two problems Amanda Corporation makes...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Supplemental Instruction Acct 201B Use the following information for the following two problems Amanda Corporation makes a product with the following standard costs: Direct Materials Direct Labor Variable Overhead Standard Quantity 4 grams 0.5 hours 0.5 hours The company reported the following results in August: Actual Output RM used in production Purchases of RM Actual Direct Labor-hours Actual price of RM purchased Actual Direct Labor Rate Actual Variable Overhead Rate 8) The materials price variance is $3,510 Favorable a) b) $3,381 Unfavorable c) $3,510 Unfavorable 3,000 units 11,270 grams 11,700 grams 1,950 hours $1.30 per gram $10.40 per hour $2.00 per hour Standard Price/Rate $1.00 per gram $11.00 per hour $3.00 per hour d) $3,381 Favorable 9) The labor efficiency variance is a) $4,950 Favorable b) $4,950 Unfavorable c) $900 Favorable d) $900 Unfavorable 10) Cash flows at the end of each of the next four years will be $10,000, $12,000, $8,000, and $14,000 respectively. What is the total discounted value of the cash flows if the discount rate is a constant 8% per year? a) $44,000 b) $32,340 c) $36,186 d) $34,936 11) A company has unlimited funds to invest at a discount rate of 6%. What projects should the company invest in? a) An internal rate of return greater than zero b) A simple rate of return greater than its discount rate c) A net present value greater than zero d) A payback period less than the projects estimated life 12) Jeffery Corporation is considering the following investment projects Investment Required PV of cash inflows Project F $41,000 $47,560 Project G Project I $30,000 $85,400 $45,230 $93,650 The profitability index of the investment for Project F is closest to: a) 0.16 b) 0.55 c) 1.16 d) 0.86 13) Kyle Corporation has provided the following data concerning an investment project it has considered for its upcoming period Initial Investment Working Capital $680,000 51,000 Annual Cashflows 225,000 per year Salvage Value at end of project 20,000 Expected Life Discount Rate 3 years 10% The working capital can be released and used elsewhere when the project ends. The NPV of the project would be closest to: a) ($118,104) b) ($156,405) c) $240,000 d) ($151,658) Supplemental Instruction Acct 201B Use the following information for the following two problems Amanda Corporation makes a product with the following standard costs: Direct Materials Direct Labor Variable Overhead Standard Quantity 4 grams 0.5 hours 0.5 hours The company reported the following results in August: Actual Output RM used in production Purchases of RM Actual Direct Labor-hours Actual price of RM purchased Actual Direct Labor Rate Actual Variable Overhead Rate 8) The materials price variance is $3,510 Favorable a) b) $3,381 Unfavorable c) $3,510 Unfavorable 3,000 units 11,270 grams 11,700 grams 1,950 hours $1.30 per gram $10.40 per hour $2.00 per hour Standard Price/Rate $1.00 per gram $11.00 per hour $3.00 per hour d) $3,381 Favorable 9) The labor efficiency variance is a) $4,950 Favorable b) $4,950 Unfavorable c) $900 Favorable d) $900 Unfavorable 10) Cash flows at the end of each of the next four years will be $10,000, $12,000, $8,000, and $14,000 respectively. What is the total discounted value of the cash flows if the discount rate is a constant 8% per year? a) $44,000 b) $32,340 c) $36,186 d) $34,936 11) A company has unlimited funds to invest at a discount rate of 6%. What projects should the company invest in? a) An internal rate of return greater than zero b) A simple rate of return greater than its discount rate c) A net present value greater than zero d) A payback period less than the projects estimated life 12) Jeffery Corporation is considering the following investment projects Investment Required PV of cash inflows Project F $41,000 $47,560 Project G Project I $30,000 $85,400 $45,230 $93,650 The profitability index of the investment for Project F is closest to: a) 0.16 b) 0.55 c) 1.16 d) 0.86 13) Kyle Corporation has provided the following data concerning an investment project it has considered for its upcoming period Initial Investment Working Capital $680,000 51,000 Annual Cashflows 225,000 per year Salvage Value at end of project 20,000 Expected Life Discount Rate 3 years 10% The working capital can be released and used elsewhere when the project ends. The NPV of the project would be closest to: a) ($118,104) b) ($156,405) c) $240,000 d) ($151,658)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
7 ) MI has a $ 1 , 0 0 0 par value, 3 0 - year bond outstanding that was issued 2 0 years ago at an annual coupon rate of 1 0 % , paid semiannually. Market interest rates on similar bonds are 7 % ....
-
Rog Corporation makes a product with the following standard costs: Standard input/ output ratio Standard Price per Unit of Input Direct materials 7 grams$6.00 per grab direct labor 2 hours$16.00 per...
-
Green Mountain Ltd is a merchandising company that is trying to decide how many units of merchandise to order each month. The company's policy is to have 20% of the next month's sales in inventory at...
-
Bonita Company's income statement contained the following condensed information. BONITA COMPANY Income Statement For the Year Ended December 31, 2022 Service revenue Operating expenses, excluding...
-
Jaclyn Biggs, who files as a head of household, never paid AMT before 2015. In 2015, her $197,900 taxable income included $178,000 ordinary income and a $19,900 capital gain taxed at 15 percent. Her...
-
The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Wright Company. Additional information from Wright's accounting records is provided also....
-
Place the letter of each system principle in the blank next to its best description. A. Control principle D. Flexibility principle B. Relevance principle E. Cost-benefit principle C. Compatibility...
-
On January 1, 2012, Brittany Corporation had $1,000,000 of common stock outstanding that was issued at par. It also had retained earnings of $750,000. The company issued 40,000 shares of common stock...
-
Small Factory: - Regular time 8 hrs per day. - 60 workers. - Worker productivity 1.5 units per hr. - 4 hr as over time in (Jan, Feb, and Mar.) - R.T cost of labor hr $ 30 per worker. - O.T cost of...
-
2. Suppose there are two sources (i.e., A and B) of CO2 emission in the economy for a given year and the total abatement cost (TAC) for the two sources of pollution are given respectively as: TACA =...
-
Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Federal Way, Incorporated, is one of America's most prestigious retailers....
-
On 1 April 2 0 1 6 , Amanah Berhad purchased a 2 5 - storey building for the investment purposes. The cost of the building was RM 8 9 , 0 0 0 , 0 0 0 . 0 0 and the building is expected to have a...
-
Even with relatively stable economies, the Gulf States are not immune to economic hardships. Let's take a moment to look at the economic "underbelly" of the sub-region for a moment. Which of the...
-
At December 31, Hawke Company reports the following results for its calendar year, Cash sales $640,000 Credit sales $ 1,600,000 In addition, its unadjusted trial balance includes the following items....
-
Economic Theory uses a lot of simplification to get to its key analytical points. One type of simplification is an assumption that economic actors are sensitive to changes in the price and supply of...
-
Rohit and Sita are married with two children, ages 5 and 3 . Rohit is an account manager at a bank earning $ 6 5 , 0 0 0 a year, and Sita works at an accounting firm as senior auditor earning $ 1 2 0...
-
Why is it important to understand the macro-environment when making decisions about an international retail venture?
-
What factors should be taken into account when designing a system of accounting for inflation?
-
Historical cost accounting is the worst possible accounting convention, until one considers the alternatives. Discuss this statement in relation to CPP, CCA and NRVA.
-
Discuss the effect on setting performance bonuses for staff if financial performance for a period contains both realised and unrealised gains/losses.
Study smarter with the SolutionInn App