Answer:
The materials price variance for the month is $5,265 favorable
Explanation:
The material price variance is computed by taking a difference between the actual price - standard price and multiply with actual quantity.
In the given question, the actual price is not given. So, we need to calculate the actual price by using the formula which is shown below:
= Actual cost of material purchased ÷ Actual materials purchased
= 151,065 ÷ 8,100 meters
=$18.65 per meters
Now, we can easily calculate. The equation is shown below:
= (Actual Price - Standard Price) × Actual Quantity
= ($18.65 - $18.00) × 8,100
= $5,265 favorable.
Thus, the materials price variance for the month is $5,265 favorable.
Answer:
The answer is: After-tax rate of return = 9.8% .
Explanation:
Please find the calculations which are shown in details as below:
Pre-tax dividend earning is $0.75, Tax rate on ordinary income is 28% => After-tax dividend earning = 0.75 x (1 - 28%) = $0.54;
Pre-tax capitals gain is $3 ( that is, $33 -$30), tax rate on capital gains is 20% => After-tax capital gains = 3 x ( 1 - 20%) = $2.4 ;
=> Total after-tax return = After-tax capital gains + After-tax dividend earning = 2.4 + 0.54 = $2.94 .
Thus, in percentage term, after-tax rate of return is 2.94/30 = 9.8%.
Answer:
B) To maximize profit, firms should produce at a level of output where price equals average variable cost
Explanation:
Firms maximize their profit by equating Marginal revenue with The Marginal cost. So, since for perfectly competitive firms, the price equals the Marginal revenue, for these firms profit is maximized by equating Price with Marginal cost not the average variable cost.
Answer:
Debited to Retained Earnings of $500,000.
Explanation:
At the time of declaration of the dividend, the journal entry is recorded which is shown below:
Retained earning A/c Dr $500,000
To Dividend payable A/c $500,000
(Being cash dividend declared)
On the declaration date, the dividend amount is recorded. So while recording we debited the retained earning account and credited the dividend payable account
All other information which is given is not relevant. Hence, ignored it
