One of the employees of Davenport Corporation recently was involved in an accident with one of the corporation’s delivery vans. The corporation is either going to repair the damaged van or sell it as is and buy a comparable used van. Information related to this decision is provided below: Initial cost of the damaged van $30,000 Accumulated depreciation to date on van $18,000 Salvage value of van immediately before crash $9,000 Salvage value of van immediately after crash $1,000 Cost to repair damaged van $5,000 Cost of a comparable used van $10,000 Based on the information above, Davenport would be financially better off: 

All of Brayland Corporation’s sales are on account. Thirty-five percent of the sales on account are collected in the month of sale, 45% in the month following sale, and the remainder are collected in the second month following sale. The following are budgeted sales data for the company:   January February March April Total sales $50,000 $60,000 $40,000 $30,000 What is the amount of cash that should be collected in March?

Rylie Corporation applies manufacturing overhead to products on the basis of standard machine-hours. The company’s standard variable manufacturing overhead rate is $2.40 per machine-hour. The actual variable manufacturing overhead cost for the month was $5,240. The original budget for the month was based on 2,100 machine-hours. The company actually worked 2,270 machine-hours during the month. The standard hours allowed for the actual output of the month totaled 2,280 machine-hours. What was the variable overhead efficiency variance for the month?

Jasmine Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project (Ignore income taxes.): Sales     $ 500,000 Less cash variable expenses       200,000 Contribution margin       300,000 Less fixed expenses:         Fixed cash expenses $ 150,000     Depreciation expenses   45,000   195,000 Net operating income     $ 105,000   The company’s required rate of return is 12%. The payback period for this project is closest to:

Freddy Framing’s cost formula for its supplies cost is $2,300 per month plus $6 per frame. For the month of March, the company planned for activity of 861 frames, but the actual level of activity was 856 frames. The actual supplies cost for the month was $7,790. The activity variance for supplies cost in March would be closest to:

The following labor standards have been established for a particular product: Standard labor-hours per unit of output   8.7 hours Standard labor rate $ 18.10 per hour   The following data pertain to operations concerning the product for the last month: Actual hours worked   3,800 hours Actual total labor cost $ 67,640   Actual output   500 units   What is the labor efficiency variance for the month?

Parker Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The investment would provide cash inflows of $2,000 per year for six years. The working capital would be released for use elsewhere when the project is completed. If the company’s discount rate is 10%, the investment’s net present value is closest to (Ignore income taxes.):See separate Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

Wallen Corporation is considering eliminating a department that has an annual contribution margin of $80,000 and $160,000 in annual fixed costs. Of the fixed costs, $90,000 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be:

IBT Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,500 client-visits, but its actual level of activity was 3,490 client-visits. The clinic has provided the following data concerning the formulas used in its budgeting and its actual results for January:Data used in budgeting:   Fixed element per month Variable element per client-visit Revenue   –   $ 38.20             Personnel expenses $ 33,600   $ 11.00 Medical supplies   1,900     6.20 Occupancy expenses   10,200     1.90 Administrative expenses   6,600     0.30 Total expenses $ 52,300   $ 19.40 ​ Actual results for January:     ​ Revenue $ 127,218   Personnel expenses $ 71,860 ​ Medical supplies $ 24,058 ​ Occupancy expenses $ 17,371 ​ Administrative expenses $ 7,547 ​ ​ ​ The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for January would be closest to: 

Star Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 1,300 units are planned to be sold in March. The variable selling and administrative expense is $4.20 per unit. The budgeted fixed selling and administrative expense are $19,240 per month, which includes depreciation of $3,380 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: