BUS 202 Test 3 Sample - BUS 202 Test 3 Sample Student 1 The...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
BUS 202 Test 3 Sample Student: ___________________________________________________________________________ 1. The budget for May called for production of 9,000 units. Actual output for the month was 8,500 units with total direct materials cost of $127,500 and total direct labor cost of $77,775. The direct labor standards call for 45 minutes of direct labor per unit at a cost of $12 per direct labor-hour. The direct materials standards call for one pound of direct materials per unit at a cost of $15 per pound. The actual direct labor-hours were 6,375. Variance analysis of the performance for the month of May would indicate: A. $7,500 favorable materials quantity variance. B. $1,275 favorable direct labor efficiency variance. C. $1,275 unfavorable direct labor efficiency variance. D. $1,275 unfavorable direct labor rate variance. 2. Elliott Company makes and sells a single product. Last period the company's labor rate variance was $14,400 U. During the period, the company worked 36,000 actual direct labor-hours at an actual cost of $338,400. The standard labor rate for the product in dollars per hour is: 3. A preference decision: 4. In calculating the "investment required" for the project profitability index, the amount invested should be reduced by any salvage recovered from the sale of old equipment. True False 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
5. (Ignore income taxes in this problem.) Virginia Company invested in a four-year project. Virginia's discount rate is 10%. The cash inflows from this project are: Assuming a positive net present value of $1,000, the amount of the original investment was closest to: 6. Residual income is: A. Net operating income plus the minimum required return on average operating assets. B. Net operating income less the minimum required return on average operating assets. C. Contribution margin plus the minimum required return on average operating assets. D. Contribution margin less the minimum required return on average operating assets. 7. Amster Corporation has not yet decided on the required rate of return to use in its capital budgeting. This lack of information will prevent Amster from calculating a project's: 2
Image of page 2
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern