13. If a company's required rate of return is 10% and, in using the net present value method, a project's net present value is zero, this indicates that the a. project's rate of return exceeds 10%. b. project's rate of return is less than the minimum rate required. c. project earns a rate of return of 10%. d. project earns a rate of return of 0%.

14. Using the net present value method, the present value of cash inflows for Project A is $44,000 and the present value of cash inflows of Project B is $24,000. If Project A and Project B require initial investments of $40,000 and $20,000, respectively, and have the same useful life, the project that should be accepted is a. Project A. b. Project B. c. either; they are both the same. d. not capable of being calculated.

8. The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 600 units, the actual direct labor cost was $12,800 for 1,000 direct labor hours worked, the total direct labor variance is a. $480 unfavorable. b. $1,600 favorable. c. $1,000 unfavorable. d. $1,600 unfavorable.