Answer:
DL, DM, and VOH.
Explanation:
Under the variable costing method, direct labor cost, direct material cost and variable manufacturing overhead cost are cost assigned to the product. administrative, fixed manufacturing overhead cost are not variable cost and hence cannot be assigned to a product under variable costing method. Variable costing methods considers only manufacturing costs that change in total with changes in production level.
Answer:
Explanation:
Income statement
Sales commission 52,800
Expenses :
Rent expense -4,500
Automobile expense -1,100
Miscellaneous expense -1,200
Office salaries -5,250
Supplies expense -1,000
Net income $39,750
Western Realty
Statement of Stockholders' Equity
For the month ended August 31, 2019
Common Stock Retained Earnings Total
1 Balances, August 1,2019 35,000 35,000
2 Net income 39,750 39,750
3 Dividends -3,000 -3,000
4 Balance August 31, 2019 $35,000 $36,750 $71,750
The question is incomplete. The complete question is,
Presently, Stock A pays a dividend of $1.00 a share, and you expect the dividend to grow rapidly for the next four years at 20 percent. Thus the dividend payments will be
Year Dividend
1 $1.20
2 1.44
3 1.73
4 2.07
After this initial period of super growth, the rate of increase in the dividend should decline to 8 percent. If you want to earn 12 percent on investments in common stock, what is the maximum you should pay for this stock?
Answer:
The maximum that should be paid for the stock today is $40.29
Explanation:
We will use the two stage dividend growth model of DDM to calculate the price of the stock today. The DDM values the stock based on the present value of the expected future dividends from the stock. The formula for price under the two stage model is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [Dn * (1+g2) / (r - g2)] / (1+r)^n
P0 = 1.2 / (1+0.12) + 1.44 / (1+0.12)^2 + 1.73 / (1+0.12)^3 + 2.07 * (1+0.12)^4 +
[2.07 * (1+0.08) / (0.12 - 0.08)] / (1+0.12)^4
P0 = $40.2853 rounded off to $40.29
Answer:
Direct labor time (efficiency) variance= $5,400 unfavorable
Explanation:
Giving the following information:
Standard= Direct Labor 0.25 hour $ 7.20 per hour
Actual= 6,000 hours
Number of units= 21,000
<u>To calculate the direct labor efficiency variance, we need to use the following formula:</u>
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (21,000*0.25 - 6,000)*7.2
Direct labor time (efficiency) variance= (5,250 - 6,000)*7.2
Direct labor time (efficiency) variance= $5,400 unfavorable
