Question text

The Lopez Company uses standard costing in its manufacturing plant for auto parts. , the budgeted output level for the year is 4,000 units ,The standard machine-hours allowed per unit of output is 6 machine hours. the budgeted Variable manufacturing overhead rate is $8per hour. The actual output produced was 4,400 units. The actual Variable manufacturing overhead costs were $245,000. The actual machine hours were 28,400.

The efficiency variance for V.MOH is :

Select one:

a. never a variance

b. 16,000 unfavorable

c. 17,800 unfavorable

d. 16,000 favorable

e. 17,800 favorable

Which of the following ignores the time value of money

Select one:

a. Net present value

b. non of them

c. payback period

d. both of them