ACC 211-The following data pertains to an investment
The following data pertains to an investment:
Cost of the investment…………………………………..$18,955
Life of the project………………………………………………5 years
Annual cost savings……………………………………...$5,000
Estimated salvage value………………………………….$1,000
Discount rate………………………………………………..10%
Present value of $1 at 10% for 5 years…………………….0.621
Present value of an Annuity of $1 at 10% for 5 years……..3.791
Future value of $1 at 10% for 5 years……………………..1.611
Future value of an Annuity of $1 at 10% for 5 years……...6.105
The net present value of the proposed investment is:
a. $3,355
b. $(3.430)
c. $0
d. $621
By converting dollars to be received in the future into current dollars, the present value methods take into consideration that money:
a. Has an international rate of exchange
b. Is the language of business
c. Is the measure of assets, liabilities, and stockholders’ equity on financial statement.
d. Has a time value
The following labor standards have been established for a particular product:
Standard labor-hours per unit of output…………….3.3 hours
Standard labor rate………………………………$16.15 per hour
The following data pertains to operations concerning the product for the last month:
Actual hours worked…………………….………6.300 hours
Actual total labor cost………………………$103,635
Actual output……………………………………2,000 units
What is the labor rate variance for the month?
a. $2,955 F
b. $4,935 F
c. $2,955 U
d. $1,890 U
UCM has collected the following data for one of its products:
Direct materials standard (6 pounds per unit @ $0.55/lb.) | $3.30 per finished good |
Direct materials flexible budget variance-unfavorable | $12,000 |
Actual direct materials used | 35,000 pounds |
Actual finished goods produced | 26,000 units |
How much is the direct materials quantity variance?
a. $78,550 favorable
b. $27,940 unfavorable
c. $66,550 favorable
d. $78,550 unfavorable
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Rating:
/5
Solution: ACC 211-The following data pertains to an investment