29.) Consider the followings:

Actual labor hours: 6,000

Actual rate: $5/hr

Standard labor hours: 5,500

Standard rate: $5.50/hr

Determine the direct labor rate variance

Select one:

A.$3,000 favorable

B.$3,000 unfavorable

C.$3,200 unfavorable

D.$2,500 favorable

30.) In a factory where it takes 2.5 standard hours per unit, the standard variable overhead cost per unit is $2.20 per hour. If 3,000 units are produced at an actual variable overhead cost of $16,850, what is the variable factory overhead controllable variance?

Select one:

A.$4,200 favorable

B.$12,200 unfavorable

C.$350 unfavorable

D.None of the above

31.) In a capital investment analysis, when the annual net cash inflows are not equal the cash payback period cannot be determined.

Select one:

True

False

32.) The main difference between a static budget and a flexible budget is that a static budgetis prepared for several activity levelsand a flexible budget is prepared for only one level of activity.

Select one:

True

False

33.) The management of ABC company has established 10% as the minimum acceptable rate of return for its invested assets. The following information is available for its two divisions:

RetailEntertainmentIncome from operations$343,200$320,000Invested assets$1,320,000$1,600,000What is the rate of return for the entertainment division?

Select one:

A.20%

B.26%

C.23%

D.25%

34.) The management of ABC company has established 10% as the minimum acceptable rate of return for its invested assets. The following information is available for its two divisions:

RetailEntertainmentIncome from operations$343,200$320,000Invested assets$1,320,000$1,600,000What is the residual income for the retail division?

Select one:

A.$343,200

B.$250,000

C.$211,200

D.None of the above

35.) The management of ABC company has established 10% as the minimum acceptable rate of return for its invested assets. The following information is available for its two divisions:

RetailEntertainmentIncome from operations$343,200$320,000Invested assets$1,320,000$1,600,000What is the residual income for the entertainment division?

Select one:

A.$160,000

B.$320,000

C.$170,000

D.None of the above

36.) The management of ABC company has established 10% as the minimum acceptable rate of return for its invested assets. The following information is available for its two divisions:

RetailEntertainmentIncome from operations$343,200$320,000Invested assets$1,320,000$1,600,000Which division has the highest ROI and therefore most profitable?

Select one:

A.Entertainment

B.Retail

C.Both have same ROI

D.None of the above

37.) Which of the following statements is correct regarding transfer pricing?

Select one:

A.When divisions transfer products or services to each other, a transfer price must not be charged.

B.When the negotiated price approach is used, the transfer price should be more than the market price.

C.If variable cost per unit is used to determine the transfer price, fixed factory overhead cost is excluded from the transfer price.

D.None of the above

38.) The objective of setting a transfer price is to benefit the overall company income.

Select one:

True

False

39.) A cost center manager is responsible making decisions affecting revenues, expenses, and income from operations.

Select one:

True

False