ACC Misc Questions – North Wind Manufacturers

M22-17: Materials VarianceNorth Wind Manufacturers decorative weather that has a standard materials cost of two poundsof raw materials at $1:60 per pound. During September 10,000 pounds of raw materials costing$1:55 per pound were used in making 4,800 weather vanes.Determine the materials price and quantity variance?M22-19: Direct Labor VariancesAssume that Nortel manufacturers specialty electronic circuitry through a unique photoelectronic process. One of the primary products, Model ZX40, has a standard labor time of 0.5hour and a standard labor rate of $13:50 per hour. During February, the following activitiespertaining to direct labor for ZX40 were recorded:Direct labor hours used..2,180Direct labor cost..$34,000Units of ZX40 manufactured..4,600a. Determine labor rate varianceb. Determine the labor efficiency variancec. Determine the total flexible budget labor cost varianceM22-20: Significance of Direct labor variancesThe Morgan Companys April budget called for labor costs of $125,000. Because the actuallabor costs were exactly $125,000, management concluded there were no labor variances.Comment on managements conclusion.M24-15a: NPV and IRR: Equal Annual Net Cash InflowM24-16a: NPV and IRR: Equal Annual Net Cash InflowM24-17a: Payback period and Accounting Rate of Return: Equal Annual Operating cashFlows with Disinvestment.M24-28(a, b) Ranking Investment Proposals: Payback Period, Annual Accounting Rate ofReturn, and Bet Present Value (only use NPV and Payback Period).Proposal XProposal YProposal ZInitial investmentCash Flow fromoperationsYear 1Year 2Year 3DisinvestmentLife (years)a. Rank these investment proposals using the payback period, the accounting rate of returnon initial investment, and the net present value criteria. Assume that the organizationscost of capital is 14%. Round calculations to four decimal places.b. Explain the difference in rankings. Which investment would you recommend?