27) Sheffield Corp.prepared a fixed budget of60000direct labor hours, with estimated overhead costs of $300000for variable overhead and $90000for fixed overhead.Sheffieldthen prepared a flexible budget at58000labor hours. How much is total overhead costs at this level of activity?

a. $377000

b. $380000

c. $290000

d. $390000

28) Swifty Corporationproduced78000units in36000direct labor hours. Production for the period was estimated at90000units and45000direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at

a. 48000hours and45000hours.

b.45000hours and36000hours.

c.36000hours and36000hours.

d. 48000hours and36000hours.

31) Which of the following statements is false?

a. The standard cost of a product is equivalent to the budgeted cost per unit of product.

b. A standard is a unit amount.

c. In concept, standards and budgets are essentially the same.

d. A standard cost is more accurate than a budgeted cost.

32) Crane Companyhas a materials price standard of $2.00per pound.5100pounds of materials were purchased at $2.20a pound. The actual quantity of materials used was5100pounds, although the standard quantity allowed for the output was4300pounds.

Crane Company's materials price variance is

a. $1020U.

b. $160U.

c. $860U.

d. $1020F.

33) Information onWaterway's direct labor costs for the month of August is as follows:

Actual rate$8

Standard hours11000

Actual hours10000

Direct labor price varianceunfavorable$4000

What was the standard rate for August?

a. $8.04

b.$7.60

c.$7.96

d.$8.40

34) The per-unit standards for direct labor are2direct labor hours at $15per hour. If in producing3000units, the actual direct labor cost was $88000for5500direct labor hours worked, the total direct labor variance is

a.$2000unfavorable.

b.$1250unfavorable.

c.$2000favorable.

d.$3000unfavorable.

35) A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $87116and is expected to generate cash inflows of $35000each year for three years. The approximate internal rate of return on this project is

a. 9%.

b. 11%.

c. less than the required 8%.

d. 10%.

36) MarigoldCompany is considering two capital investment proposals. Estimates regarding each project are provided below:

Project Soup Project Nuts

Initial investment $305000 $504000

Annual net income 30000 46000

Net annual cash 110000 156000

inflow

Estimated useful life 5years 6years

Salvage value 0 0

The company requires a10% rate of return on all new investments.

The net present value for Project Nuts is

a. $679380.

b. $336316.

c. $84000.

d. $175380.

37) A company is considering purchasing a machine that costs $296000and is estimated to have no salvage value at the end of its8-year useful life. If the machine is purchased, annual revenues are expected to be $100000and annual operating expenses exclusive of depreciation expense are expected to be $38000. The straight-line method of depreciation would be used.

If the machine is purchased, the annual rate of return expected on this machine is

a. 20.95%.

b. 41.90%.

c. 16.89%.

d. 8.45%.