Answer:
The standard cost is $5 per lbs
each units uses 2 lbs, so the unit stadard cost is $10
Explanation:
Volume variance
std quantity 2800.00 (1,400 units times 2 pounds per unit)
actual quantity 3000.00
std cost ??
difference -200.00
efficiency variance $(1,000.00)
-200 x Std cost = -1,000
Standard cost = -1,000/-200 = 5
The standard cost is $5 per lbs
each units uses 2 lbs, so the unit stadard cost is $10
Answer:
11.11%
Explanation:
<em><u>The full question with table is attached.</u></em>
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We need the rate of return formula using Capital Asset Pricing Model (CAPM). The formula is:
Where
R is rate of return (what we need)
is risk-free return rate (5% = 0.05)
is the market rate of return (11% = 0.11)
To get , we take the weighted average of the portfolio.
Weight of Stock A = 1,075,000/3,000,000 = 0.3583
Weight of Stock B = 675,000/3,000,000 = 0.225
Weight of Stock C = 750,000/3,000,000 = 0.25
Weight of Stock D = 500,000/3,000,000 = 0.1667
Portfolio Beta = (0.3583*1.2) + (0.225*0.50) + (0.25*1.40) + (0.1667*0.75) = 1.02
Now, we calculate rate of return using CAPM formula:
That is 11.12%, or from answer choice, it is <u>11.11%</u>
