Before 1993, the U.S. Forest Service sold timber-cutting rights:

Material and Labor Variances The following actual and standard cost data for direct material and direct labor relate to the prod

Damm [24]

Answer:

Materials:

price 800U

quantity 510 F

Labor:

rate 1,860 F

efficiency 1,740 U

Explanation:

DIRECT MATERIALS VARIANCES

$(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance$

std cost $5.10

actual cost $5.30

quantity 4,000

$(5.1 - 5.3) \times 4,000 = DM \: price \: variance$

price variance $(800.00)

$(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance$

std quantity 4000.00

actual quantity 3900.00

std cost $5.10

$(4,000 - 3,900) \times 5.1 = DM \: quantity \: variance$

quantity variance $510.00

DIRECT LABOR VARIANCES

$(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance$

std rate $8.70

actual rate $8.40

actual hours 6,200

$(8.7 - 8.4) \times 6,200 = DL \: rate \: variance$

rate variance $1,860.00

$(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance$

std hours 6000.00

actual hours 6200.00

std rate $8.70

$(6,000 - 6,200) \times 8.70 = DL \: efficiency \: variance$

efficiency variance $(1,740.00)

4 0

3 years ago

Suver Corporation has a standard costing system. The following data are available for June: Actual quantity of direct materials

tatuchka [14]

Answer: $3.10

Explanation:

The actual price per pound of direct materials purchased in June will be calculated as follows:

Let the actual price be represented by x.

Material price variance is calculated as:

= (standard price-actual price) × actual quantity

-2000 = (3 × 20000) - 20000x

-2000 = 60000 - 20000x

20000x = 60000 + 2000

20000x = 62000

x = 62000/20000

x = 3.1

Therefore, the actual price per pound of direct material bought in June is $3.10

4 0

3 years ago

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______________

Blababa [14]

Answer:

opportunity cost

Explanation:

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the opportunity cost of investing in physical capital.

6 0

2 years ago

Since the politicians are unwilling to get rid of the rent controls, they offer you a list of suggestions to make housing more a

nika2105 [10]

<span>For statement 1; Government provided housing, this may be costly but the way that the people are provided with houses can decrease the number of homeless people. For statement 2; Tax deductions to renters, this has been going on for thousand years, taxes are used to provide services to people if the government properly used it. For statement 3; Tax breaks to construction companies who provide affordable housing, this is common to developers who intend to maximize their profit and the available area for people whose income is not that high. I would suggest statement 3.</span>

6 0

3 years ago

Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its befor

Arturiano [62]

Answer:

Cost of common equity is 15.7% and WACC is 7.2%

Explanation:

D1 is

D1= 2.25 (1+0.05)

The cost of common equity is

Rs = 2.36/ 22.00 + 5% =0.157= 15.7%

The cost of common equity is weighted average cost of capital (WACC)

WACC = (0.35) * (0.08) (1- 0.40) + 0 preferred stock+ (0.35) * (0.157)

WACC = 0.03 *0.6 + 0 + 0.054

WACC = 0.018 + 0.054

WACC = 7.2%

4 0

3 years ago