Answer:
Barber's Return on Equity (ROE) is 1.28%
Explanation:
The formula to compute the ROE of Barber is:
ROE = Net Income / Shareholder's Equity
= $250,000 / $195,000
= 1.28%
It is a measure of the profitability ratio which evaluates the firm ability for generating profits from investment of shareholders.
Working Note:
Shareholder Equity of Barber = Beginning capital - Withdrew amount
= $285,000 - $90,000
= $195,000
Answer:$163 which is favorable
Explanation:
Standard Cost per month is given as =Actual Quantity × Standard Rate
= Actual activity for number of jobs per month × Standard rate per job + Actual activity for meals× standard Rate per meal + Cost of Catering supplies
= 9 jobs×$101 per job + 126 meals × $24 per meal +$470
= $909 + $3,024 + $470 = $4,403
Also, Spending Variance = Actual cost of Catering in May- Standard cost of catering per month.
$4,240- $4,403= $163---- Favorable . This is because the actual cost for catering supplies is less than the Standard cost estimated.
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