1. Hien, Inc. uses machine-hours as the base to apply its manufacturing overhead. the following information relates to variable manufacturing overhead standards at Hien:
Standard rate per machine-hour: $50
Total standard machine-hours allowed for units produced during september: 4000
Hien's variable overhead rate variance for september was $800 favorable. Its Variable overhead efficiency variance was $3600 unfavorable. How many machine-hours did Hien actually use during september?
A. 3928
B. 3944
C. 4056
D. 4072
2. Which of the following will have the largest dollar effect on the net present value of a 10 year investment project?
A. a decrease of $20,000 in the initial investment required with no effect on the expected salvage value in 10 years.
B. an increase of $20,000 in the expected salvage value in 10 years with no effect on the initial investment.
C. a decrease of $20,000 in both the working capital needed to start the project and the amount being released at the end of the 10 years.
D. an increase of $2,000 in the annual cash inflows from this project