I think it is the return or benefits in other ways....
Answer and Explanation:
a. The computation of the material price variance is shown below:
= Actual Quantity × (Standard Price - Actual Price)
= 725,000 × ($2.95- $3)
= 725,000 × $0.5
= $36,250 unfavorable
b. The computation of the material quantity variance is shown below:
= Standard Price × (Standard Quantity - Actual Quantity)
= $2.95 × (730,000 - 725,000)
= $2.95 × 5,000
= $14,750 favorable
And, the total direct material cost variance is
= Material price variance + material cost variance
= $36,250 unfavorable + 14,750 favorable
= $21,500 unfavorable
Tony is able to purchase the shares even before the dividend are distributed to the shareholders. Hence, he will be part of the payment to be made by the XYZ corporation.
To determine the amount that Tony will receive as dividend for taking part in the company's generation of capital, we multiply the number of shares he has by the amount that he is to get per share. That is,
dividend = (number of shares)(amount per share)
Substituting,
dividend = (100 shares)($1.25/share)
dividend = $125
ANSWER: $125