Question 1.1. A company used the net present value method and determined that project 34 had a zero net present value. What does this tell management about the project? (Points : 2)

The return from this project is equal to the cost of capital. It guarantees company profitability. The project's cash inflows will equal its cash outflows. It earns the company's desired minimum rate of return.

Question 2.2. What is meant by a favorable variance? (Points : 2)

It is an indication that the company is not operating in an optimal manner. It implies a positive result if quality control standards are met. It implies a positive result if standards are flexible. It means that standards are too loosely specified.

Question 3.3. The total variance is $35,000. The total materials variance is $8,000. The total labor variance is twice the total overhead variance. What is the total overhead variance? (Points : 2)

$4,500 $8,000 $9,000 $13,500

Question 4.4. The per-unit standards for direct materials are 2 gallons at $3 per gallon. Last month, 5,600 gallons of direct materials that actually cost $16,200 were used to produce 3,000 units of product. What was the direct materials quantity variance for last month? (Points : 2)

$1,200 unfavorable. $1,200 favorable. $2,800 unfavorable. $9,000 unfavorable.

Question 5.5. The following information was taken from the annual manufacturing overhead cost budget of Moen Company. Variable manufacturing overhead costs $69,300 Fixed manufacturing overhead costs $41,580 Normal production level in labor hours 23,100 Normal production level in units 5,775 Standard labor hours per unit 4