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Piper Corporation, which manufactures dog toys, is developing direct labor standards. The basic direct labor rate is $12.00 per hour. Payroll taxes are 13% of the basic direct labor rate, while fringe benefits such as vacation and health care insurance, are $6.00 per hour. What is the standard rate per direct labor hour?

A $13.56 B.$18.00 C.$12.00 D.$19.56

Kotrick Company has beginning inventory of 15,000 units and expected sales of 23,000 units. If the desired ending inventory is 18,000 units, how many units should be produced?

56,500 B.10,000 C.20,000 D.26,000

Lakewood Jet Skis has budgeted sales for June and July at $420,000 and $480,000, respectively. Sales are 75% credit, of which 40% is collected in the month of the sale and 60% is collected in the following month. What is the accounts receivable balance on July 31?

A.$288,000 B.$360,000 C.$216,000 D.$189,000

Your wealthy neighbor has promised to give you $2,000 a year at the end of each of the next four years to help with college. Using a discount rate of 8%, the present value of the gift can be stated as

A.PV = $2,000 (Annuity FV factor, i = 8%, n = 4).

B.PV = $2,000 (PV factor, i = 4%, n = 4).

C.PV = $2,000 times 8% times 5.

D.PV = $2,000 (Annuity PV factor, i = 8%, n = 4).

Capital budgeting methods will not work with unequal cash flows during the capital asset's life. Other methods must be utilized in those cases. True False

The term ________ is described as a "formal means of analyzing longminusrange investment alternatives."

A.payback period B.Annuity C.capital budgeting D.time value of money

The Porch Cushion Company manufactures foam cushions. The number of cushions to be produced in the upcoming three months follows: Number of foam cushions to be produced in July 12,000 Number of foam cushions to be produced in August 15,000 Number of foam cushions to be produced in September 10,000

Each cushion requires 2 pounds of the foam used as stuffing. The company has a policy that the ending inventory of foam each month must be equal to 25% of the following month's expected production needs. How many pounds of foam does The Porch Cushion Company need to purchase in August?

A. 22,500 B. 42,500 C. 27,500 D.20,000

The term ________ is best described as a relationship among principal, interest rate, and time.

A.Annuity B.payback period C. time value of money D.capital budgeting

Two Brothers Moving prepared the following sales budget:

Month Cash Sales Credit Sales

March $20,000 $10,000

April $36,000 $16,000

May $42,000 $40,000

June $54,000 $48,000

Credit collections are 25% in the month of sale, 60% in the month following the sale, and 10% two months following the sale. The remaining 5% is expected to be uncollectible.

What are the total cash collections in May at Two Brothers Moving?

A.$65,000 B.$62,600 C.$20,600 D.$76,100

Which of the following areas does not make significant use of time value of moneyconcepts?

A. Lending and borrowing B. Personal finance planning C. Capital investment analysis D. Marketing research

The following information describes a company's usage of direct labor in a recent period:

Actual direct labor hours used 34,000

Actual rate per hour $17.00

Standard rate per hour $16.75

Standard hours for units produced 33,500

How much is the direct labor efficiency variance?

A.$8,500 favorable B.$8,375 favorable C.$8,375 unfavorable D.$8,500 unfavorable