1. In Swifty Corporations income statement, they report actual gross profit of $54500 and the following variances:

Materials price	$420 F
Materials quantity	600 F
Labor price	420 U
Labor quantity	1000 F
Overhead	900 F

Swifty would report gross profit at standard of

$49500.

$48660.

$55340.

$52000.

2. Oriole Company is considering buying a machine for $400000 with an estimated life of 10 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $10000 each year. The cash payback period on this investment is

4.00 years.

20.00 years.

10.00 years.

8.00 years.

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