1a.

The standard amount of materials required to make one unit of Product Q is 4 pounds. Tusa's static budget showed a planned production of 6,000 units. During the period the company actually produced 6,100 units of product. The actual amount of materials used averaged 4.1 pounds per unit. The standard price of material is $2 per pound. Based on this information, the materials usage variance was:

$610 favorable.

$600 unfavorable.

$600 favorable.

$1,220 unfavorable.

1b.

When calculating the present value of an ordinary annuity, it is assumed that:

cash flows will be reinvested at the required rate of return.

cash flows are withdrawn at the end of each year.

the investor will wait until the end of the investment period to withdraw cash flows.

Both cash flows will be reinvested at the required rate of return and cash flows are withdrawn at the end of each year are correct.