QUESTION 12 Grayson Industries has collected the following data for one of its products when they produced 20,000 finished units of product. Direct materials standard 2 pounds per unit @ $0.50/lb. Actual price paid $.75 per pound Actual direct materials purchased 40,000 pounds Actual direct material used 39,500 pounds Determine the direct material price variance. A. $10,000 Unfavorable B.$10,000 Favorable C. $9,875 Unfavorable D. $9,875 Favorable QUESTION 13 Conrad Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $10,000. Budgeted cash receipts are $120,000, while budgeted cash disbursements are $140,000. The company wants to have an ending cash balance of $20,000. How much would Conrad Company need to borrow to achieve its desired ending cash balance? Tyler's Tubas has projected sales of 500 in March and 900 in April. Inventory at the end of February was 70 tubas. The company wants to have 10% of the next month's sales on hand at the end of each month. How many tubas does the company need to produce in March? Your answer should be in whole numbers. QUESTION 15 Fischer Corp. is considering an investment that costs $80,000 and is expected to yield the following net cash inflows. The company has set a maximum payback period of 3 years to determine if an invesment should be screened further. Year 1 $40,000 Year 2 $30,000 Year 3 $30,000 Year 4 $10,000 Year 5 $10,000 Year 6 $5,000 The payback period for this investment is A. 2 and 1/3 years B. 3 years C.6 years D.2.5 years QUESTION 16 Murphy's Paw produces and sells 1,000 units of a single product per year (with excess capacity of 400 units). The full cost per unit at the 1,00-0 level of production is as follows: Direct material $15 Direct labor Variable overhead Allocated fixed overhead 17 4 The normal selling price is $50.00 per unit. An order has been received from an overseas company for 100 units at the special price of $40.00 per unit. What would the additional income (or loss) of taking on this special order? Use a - sign for a loss and no dollar signs