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QUESTION 14 Cuevas Company produces magic swords. It uses units as the cost driver for overhead. The following information was provided concerning its standard cost system for 2014: Standard/Budgeted Data Material y lb. @ $15.00 per Labor 1.2 hrs. @ $12 per Fixed overhead $62,000 Variable $11 per unit overhead Production 2,000 units Actual Data Produced 12,100 units Materials 1,050 lbs. for $14,700 purchased Materials used 1,080 lbs. Labor worked 12,500 hrs. costing $29,375 Overhead $82,000 How much is the standard cost per unit? $21.90 $63.90 $69.00 $62.42 QUESTION 19 Which of the following statements is true? 1. Managers have a tendency to overinvest when return on investment is used as a performance measure. II. Managers have a tendency to underinvest when profit is used as a performance measure. Ol only Oll only O Both I and I Neither I nor II QUESTION 21 An adjustment is made to net income when calculating residual income to remove O noninterest-bearing current liabilities. interest and the related tax effect. O financing costs that the manager is able to control. O accounting distortions. QUESTION 24 Economic value added is residual income adjusted for noninterest-bearing current liabilities. interest and the related tax effect. financing costs that the manager is unable to control. accounting distortions

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