A carefully predetermined cost that is usually expressed on a per unit basis

A stream of equal installments made at equal time intervals

Assume that the Tarr Corporation's manufacturing facility actually incurred $2980,000 of manufacturing overhead for the year. Total fixed manufacturing overhead was budgeted at $3,080,000. Using a standard costing system, the company allocated $2,947,000 of manufacturing overhead to production. What is the fixed overhead volume variance?

Assuming an interest rate of 5%. If you invest a lump sum of $6,400 now, what will the balance of your investment in 6 years be? (the future value for this scenario is 1.34)

Standards that do not allow for any waste in the production process, machine breakdown, or other inefficiencies.

The most useful variance in assessing the performance of the purchasing department that is negotiating all of the purchasing contracts for raw materials.

The interest rate that makes NPV equal 0

Given the following:
Direct materials standard (4 lbs./unit @0.46/lb) $1.84 per finished good
Actual Direct materials used: 20,000
Actual Direct materials purchased: 38,000
Actual Price paid per pound $0.65
What is the direct materials price variance?

If you invest $3,000 at the end of every year for nine years at an interest rate of 8%, What will the balance of your investment be in 6 years? (The FVA is 7.336)

assets used for a long period of time. (give an example)

The cost of units not produced

These capital budgeting methods ignore the time value of money.

Given the following:
Direct materials Standard: 11 lbs per unit
Direct materials standard cost: $0.61 per pound
Actual Direct materials Used: 50,000 lbs
Actual finished goods purchased: 5,000 units
What is the direct materials quantity variance?

A company is adding a new product for an initial investment of $1,450,000. Managers estimate that this investment will have a 10-year life and generate net cash inflows of $325,000 the first year, $300,000 the second year, and $230,000 each year thereafter for 8 years. There is no residual value. What is the payback period

What are other names for the desired rate of return?

This Variance can be found by subtracting budgeted fixed overhead from Actual fixed overhead.

Give the formula for Accounting rate of return.

Hull Guard, which used a standard cost accounting system, manufactured 220,000 boat fenders during the year, using 1,590,000 feet of extruded vinyl purchased at $1.15 per foot. Production required 4,200 direct labor hours that cost $13.50 per hour. The materials standard was 7 feet of vinyl per fender at a standard cost of $1.30 per foot. The labor standard was 0.027 direct labor hour per fender at a standard cost of $13.00 per hour. What is the direct labor efficiency variance?

Trent would like to have $3,500,000 saved by the time he retires in 30 years. How much does he need to invest now at a 12% interest rate to fund his retirement? (PV= .033, PVA = 8.055, FV = 29.960 FVA = 241.330)

Cheap, low quality direct materials will often result in a

Describe a scenario where an unfavorable variance could be a good thing

How does depreciation affect the calculation of a projects payback period?

When auto manufacturer BMW purchased the Rolls-Royce brand name, BMW had to hire and train a new staff of assembly workers. The new workers were paid $29 per hour, worked a total of 7,100 hours, and produced 1,600 cars. BMW budgeted for a standard labor rate of $31 per hour and 1.5 direct labor hours per car. What is the direct labor rate variance for the Rolls-Royce division?

A company finds that the residual value of $10,000 for the equipment in a capital budgeting project has been inadvertently omitted from the calculation of Net present Value for the project. How does this omission affect the NPV of that project?

What happens to the NPV of a project if the discount rate is increased from 6% to 10%