Question 8

If $31000 is deposited in a savings account at the end of each year and the account pays interest of 5% compounded annually, what will be the balance of the account at the end of 10 years?

$389915

$325500

$460500

$50496

A company purchases 20000 pounds of materials. The materials price variance is $6000 favorable. What is the difference between the standard and actual price paid for the materials?

$1.00

$0.30

$3.33

Cannot be determined from the data provided

Marigold Corp. has just purchased equipment that requires annual payments of $40000 to be paid at the end of each of the next 5 years. The appropriate discount rate is 15%. What is the present value of the payments?

$134086

$179887

$170022

$66862

Splish Brothers Company is considering buying a machine for $360000 with an estimated life of 10 years and no salvage value. The straight-line method of depreciation will be used. The machine is expected to generate net income of $12000 each year. The cash payback period on this investment is

10.00 years.

7.50 years.

3.00 years.

15.00 years.

The predetermined overhead rate for Coronado Industries is $5, comprised of a variable overhead rate of $3 and a fixed rate of $2. The amount of budgeted overhead costs at normal capacity of $150000 was divided by normal capacity of 30000 direct labor hours, to arrive at the predetermined overhead rate of $5. Actual overhead for June was $12680 variable and $8040 fixed, and standard hours allowed for the product produced in June was 4000 hours. The total overhead variance is

$4040 F.

$720 F.

$720 U.

$4040 U.