Mover Company Has Developed the Following Standards for One of Its

question 58

Multiple Choice

Mover Company has developed the following standards for one of its products: $\begin{array}{ll}\text { Direct materials: } & 7.5 \text { kilograms } \times \$ 8 \text { per kilogram } \\\text { Direct labour: } & 2 \text { hours } \times \$ 12 \text { per hour } \\\text { Variable manufacturing overhead: } & 2 \text { hours } \times \$ 7 \text { per hour }\end{array}$


$\text { The following activity occurred during the month of March: }$

$\begin{array}{ll}\text { Materials purchased: } & 5,000 \text { kilograms costing } \$ 42,500 \\\text { Materials used: } & 3,600 \text { kilograms } \\\text { Units produced: } & 500 \text { units } \\\text { Direct labour: } & 1,150 \text { hours at } \$ 11.80 / \text { hour } \\\text { Actual variable manufacturing overhead: } & \$ 7,500\end{array}$ The company records materials price variances at the time of purchase.
What is the variable standard cost per unit?

• A)$38
• B)$74
• C)$84
• D)$98

Recognize the importance of cash flow timing and its effect on project viability through the payback method.

Understand the principles and applications of the Net Present Value (NPV) and Equivalent Annual Annuity (EAA) method for evaluating projects.

Identify and explain the limitations and advantages of the replacement chain method in capital budgeting.

Calculate and interpret the Internal Rate of Return (IRR), NPV, and Profitability Index (PI) for different projects.

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Definitions:

Abstract Method

A method without an implementation, declared within an abstract class or interface, that must be implemented by subclasses.

Derived Classes

Classes that are created by extending the properties and functionalities of an existing class.

Inheritance Hierarchy

An inheritance hierarchy is a structure in object-oriented programming where a class inherits properties and behavior from a parent class, forming a hierarchical relationship.

Shoe Object

An instance of a class in object-oriented programming that models the properties and behaviors of a real-world shoe.