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On variance problems make sure you include F or favorable or U for unfavorable. The letter must be by the number, do not skip a space. Also, all variances will be reported in absolute (positive numbers). Do not use a -sign for unfavorable variances.

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Question 2

You deposited $10,000 in a savings account. The account will earn 8 percent annual compound interest, which will be added to the fund balance at the end of each year.

Factors to use for n = 10, I = 8% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS)

Present Value of $1 0.46319

Present Value of an Annuity of $1 6.71008

Future Value of $1 2.15892

Future Value of an Annuity of $1 14.48656

What is the total interest earned for the 10 years?

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Question 3

Garfield Inc is considering a new project that requires an initial investment of $30,850 and will generate a net income of $5,945 per year, if the projects profitability index is 1.4, the present value of the projects future cash flows is $________________ Round to the nearest dollar.

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Question 4

Mark, Inc purchases equipment for $54,430. The equipment will be depreciated over 6 years with no residual value. Mark annual net income for the year will be $86,940. Mark annual cash flows will be $_________

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Question 5

The standard price of materials is $4.7 per pound and the standard quantity allowed for actual output is 5,070 pounds. If the actual quantity purchased and used was 5,620 pounds, and the actual price per pound was $3.6, the direct materials quantity variance is ___________

Indicate whether the variance is F (favorable) or U (Unfavorable) by placing the letter next to the amount. For example, if your answer is 1,000 Favorable, answer 1000F, Do Not use a space between the amount and the letter. Show your answer as an absolute number (no negative signs)

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Question 6

You plan to retire in 40 years. Assume you are able to earn 10 percent interest on your investments.

Factors to use for n = 40, I = 10% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS)

Future Value of $1 45.259

Future Value of an Annuity of $1 442.59

Present Value of $1 .022

Present Value of an Annuity of $1 9.779

If you invest $2,300 each year for the next 40 years, how much will you have when you retire?

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Question 7

You purchase a home for $168,000 that you expect to appreciate 6% in value on an annual basis. How much will the home be worth in ten years?

Factors to use for n = 10, I = 6% (DO NOT USE ANY OTHER FACTORS OR EQUATIONS)

Present Value of $1 0.55839

Present Value of an Annuity of $1 7.36009

Future Value of $1 1.79085

Future Value of an Annuity of $1 13.18079

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Question 8

The standard price of materials is $4.8 per pound and the standard quantity allowed for actual output is 5,110 pounds. If the actual quantity purchased and used was 5,670 pounds, and the actual price per pound was $3.4, the direct materials price variance is ___________

Indicate whether the variance is F (favorable) or U (Unfavorable) by placing the letter next to the amount. For example, if your answer is 1,000 Favorable, answer 1000F, Do Not use a space between the amount and the letter. Show your answer as an absolute number (no negative signs)

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Question 9

Parker, Inc purchased new equipment for $59,100. The new equipment would save on operating costs over the next 5 years as follows: $22,000 in year 1; $21,700 in year 2; $24,000 in year 3; $12,900 in year 4; and $13,000 in year 5. The payback period for the new equipment is ______ years. Enter your answer rounded to 2 decimals

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Question 10

Warren Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $24,800. The equipment will have an initial cost of $199,700 and have a 10-year life and no salvage value of the equipment.

What is the payback period? ____________Round your answer 2 decimals

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Question 11

Tina Company manufactures pans. Below is the information related to its direct material costs:

Standard hours required per pan 1.9

Standard cost per hour $15.3

Actual amount of hours per pan 1.2

Actual cost per hour $14

Actual number of pans produced and sold 2,263

Tinas direct labor spending variance is $__________

Indicate the amount and whether it is Favorable or Unfavorable by placing F or U by amount, do not skip a space and do not use $ in your answer. For example, if your answer is $1,000 favorable, answer 1000F

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Question 12

Carla Companys standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $188,000 and budgeted production of 39,000 units. Actual results for the month of October reveal that Carla produced 30,222 units and spent $160,826 on fixed manufacturing overhead costs.

What is the fixed overhead that was applied to Carlas actual production units?

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Question 13

Abba, Inc is considering the purchase of some new equipment that costs $171,600. The new equipment is expected to increase revenues by $115,800 annually. Cash expenses are expected to be $58,800 and depreciation expense is $17,600. The accounting rate of return of the equipment is ___%

Enter your answer as a whole number rounded to 2 decimal places. If your calculation is .1234, answer as 12.34

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