1. Which of the following is not an advantage of post-audits of capital investments? a. They indicate whether project should continue or should be abandoned. b. They help managers make better estimates for future projects. c. They encourage managers to submit realistic net cash inflows with their project proposals. d. They help managers to decide which project should be selected. 2. What does the variable overhead efficiency variance tell management? a. How efficiently variable manufacturing overhead was used b. How efficiently fixed manufacturing overhead was used c. How efficiently employees applied manufacturing overhead to each unit d. How much of the total variable manufacturing overhead variance is due to machine hours used given the actual volume of output 3. The costs to develop a major website for a company would be considered to be a capital asset if those costs are significant and material (for example, the costs to develop the website exceed $100,000). a. True b. False 4. Myles Company budgeted 10,500 pounds of direct materials costing $23.50 per pound to make 5,300 units of product. The company actually purchased 11,000 pounds of direct materials costing $25.00 per pound to make the 5,300 units. What is the direct materials price variance? a. $16,500 favorable b. $16,500 unfavorable c. $15,750 unfavorable d. $15,750 favorable