Awareness level is currently 77%, or .77.
Awareness decreases by 33% per year, so without any additional promotion spending, awareness next year would be .77 * .66 (2/3 of 77%)
The 1 million dollar spending will increase awares by 26%, so the effect on awareness will be 0.77 * 1.26
To calculate awareness next year:
77% times (1.26 - .33)
= .77 * 0.93
= .716, or 71.6%
Answer:
Actual Quantity= 151.57
Actual Rate= $3.17
Explanation:
Giving the following information:
Standard Hours 2.50
Standard Rate $35.00
Standard Cost $87.50
Number of tune-ups= 60
Labor rate variance $ 50 F
Labor spending variance $ 55 U
<u>First, we need to calculate the actual number of hours. We need to use the direct labor efficiency variance:</u>
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Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
-55 = (60*2.5 - Actual Quantity)*35
-55 = 5,250 - 35Actual Quantity
35Actual Quantity = 5,305
Actual Quantity= 151.57
<u>Now, the actual hourly rate. We need to use the direct labor rate variance formula:</u>
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
50 = (3.5 - Actual Rate)*151.57
50= 530.5 - 151.57Actual Rate
151.57Actual Rate= 480.5
Actual Rate= $3.17