The standard materials cost to produce 1 unit of Product M is 6 pounds of material at a standard price of $50
In manufacturing 8,000 units, 47,000 pounds of material were used at a cost of $51 per pound.
What is the overall direct material cost variance?
The Brown Company has decided to purchase some machinery that is expected to produce the following
cash flows: $8,000, $6,000 and $4,000 for years 1 through 3 respectively.
Assuming interest at rate of 6
percent, what is the maximum amount the company should pay for the machinery?
You recently borrowed $32,000 to purchase a new car and agreed to make annual payments on your loan of
$6,713.52 for 6 years.
What is the interest rate on your loan?
23. Coffer Company is analyzing two projects for the future.
Assume that only one project can be selected.
Cost of machine
Net cash flow:
If the company is using the payback period method and it requires a payback of three years or less, which
project should be selected?
Which of the following interest rates will produce the largest present value?
You are planning on buying a new boat in 4 years and want to have a $5,000 down payment at that time.
the bank pays interest of 3 percent, how much should you deposit in your account today to reach your goal?
-- Page 4 --