1. An investment that costs $68,000 will provide a return of $18,500 per year for each of the next five years. What is the net present value of the investment if the required rate of return in 8 percent?

$73,865

$6,000

$5,865

$17,636

2. Factor Company has budgeted sales for the quarter as follows:

January	10,000 units
February	12,000 units
March	8,000 units

The ending inventory of finished goods each month should equal 20% of the next month's budgeted sales in units. How much is scheduled production for February?

10,400 units

11,200 units

16,000 units

12,800 units

3.At the start of 2012, Rockand Company determined its standard labor cost to be 2.5 hours per unit at $14.00 per hour. The budget for variable overhead was $8 per unit and budgeted fixed overhead was $15,000 for the year. Expected annual production was 5,000 units. During 2012, the actual cost of labor was $14.30 per hour. Rockand produced 4,900 units requiring 11,700 direct labor hours. Actual overhead for the year was $52,100. How much is the overhead volume variance?

$300 unfavorable.

$1,800 favorable.

$2,100 favorable.

$800 favorable.

4. The Uptown Company uses standard costing. Variable overhead is applied at $8 per direct labor hour. Data for the month of September follows:

Actual variable overhead costs	$78,000
Standard hours allowed for actual production	10,000
Actual labor hours worked	9,800

How much is the controllable overhead spending variance?

$2,000 favorable.

$400 favorable.

$400 unfavorable.

$2,000 unfavorable.

5. Last year, Vent Division of Air Ducts Company earned NOPAT of $200,000 on sales of $2,600,000. The division had invested capital of $1,600,000 with $62,000 noninterest-bearing current liabilities. What is the division's return on investment?

12.5%

13.0%

7.7%

61.5%