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Slav-nsk [51]
3 years ago
14

Variable overhead is applied based on direct labor hours. The variable overhead rate is $220 per direct-labor hour. The fixed ov

erhead rate (at the master budget level of activity) is $110 per unit. All non-manufacturing costs are fixed and are budgeted at $3.2 million for the coming year.Variable overhead is applied based on direct labor hours. The variable overhead rate is $220 per direct-labor hour. The fixed overhead rate (at the master budget level of activity) is $110 per unit. All non-manufacturing costs are fixed and are budgeted at $3.2 million for the coming year. At the end of the year, the costs analyst reported that the sales activity variance for the year was $1,110,000 unfavorable. The following is the actual income statement (in thousands of dollars) for the year. Sales revenue $50,638 Less variable costs Direct materials 5,268 Direct labor 4,010 Variable overhead 13,980 Total variable costs $23,258 Contribution margin $27,380 Less fixed costs Fixed manufacturing overhead 1,250 Non-manufacturing costs 1,430 Total fixed costs $2,680 Operating profit $24,700 During the year, the company purchased 216,000 pounds of material and employed 60,400 hours of direct labor.
Required:
a. Compute the direct material price and efficiency variances.
b. Compute the direct labor price and efficiency variances.
c. Compute the variable overhead price and efficiency variances.
Business
1 answer:
Dmitriy789 [7]3 years ago
6 0

Answer:

Missing word at inception of the question <em>"Paynesville Corporation manufactures and sells a preservative used in food and drug manufacturing. The company carries no inventories. The master budget calls for the company to manufacture and sell 140000 liters at a budgeted price of $375 per liter this year. The standard direct cost sheet for one liter of preservative follows: Direct materials (2 pounds at $24) $48 Direct labor (0.5 hours at $64) $32"</em>

<em />

a . Direct Material Price Variance = (Actual Qty * Std. Price) - (Actual Qty * Actual Price)

= (216,000 * $24) - ($ 5,268,000)

= $5,184,000 - $5,268,000

= $84,000 U

Direct Material Efficiency Variance = (Actual Qty - Std. Qty) * Std. Price

= (216,000 – 280,000) * $24

= -64,000 * $24

= $1,536,000 U

b. Direct Labor Price Variance = (Actual Hrs * Std. Rate) - (Actual Hrs *  Actual Rate)

= (60,400 * $ 64) - ($ 4,010,000)

= $3,865,600 - $4,010,000

= $144,400 U

Direct Labor Efficiency Variance = Std. Rate *(Std. Hrs - Actual Hrs)

= $ 64 * (70,000 - 60,400)

= $614,400 F

c. Variable OH Price Variance = (Std. Hrs * Std. Rate) - (Actual Variable OH)

= (70,000 * $220) - 1,398,000

= $ 15,400,000 - $13,980,000

= $1,420,000 F

Variable OH Efficiency Variance = (Std. Hrs - Actual Hrs) * Std. Rate

= (70,000 - 60,400) × $ 220

= $2,112,000 F

<u>Workings</u>

Standard Qty = 140,000 litres × 2 Pound per litre = 280,000 pounds

Standard Hrs = 140,000 litres × 0.5 hrs per litre = 70,000 hrs

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3 years ago
The last dividend paid by Wilden Corporation was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years,
shtirl [24]

Answer:

e)  $37.05

Explanation:

Using the dividend growth model, the value of a stock is the present value of the future dividends receivable discounted at the required rate of return . The required rate of return is given as 12%.

So we discount the year 3 dividend using the dividend growth model formula

P = D (1+g)/r-g

r- rate of return, g = growth rate

Present value of the future dividends:

PV of Year 1 = 1.55(1.015)m × 1.12^(-1)

                     = 1.4047

PV of Year 2 = 1.55 (1.015)(1.015) × 1.12^(-2)

                     =  1.27

PV of Year 3 (this will be done in two steps)

Step 1; PV (in yr 2) of year 3 dividend

= (1.55)(1.015)^2×(1.08)/(0.12-0.08)

=43.114

Step 2 : PV (in yr 2) of year 3 dividend

  =43.114 × (1.12^(-2))

   = 34.37

Best estimate of stock = 1.40 + 1.27 +34.37

                                       = $37.05

Note

To discount the year 3 dividend, we use two steps. The first stp helps get the PV in year 2, and step 3 helps to take it further to the PV in year 0

         

8 0
3 years ago
Moral entrepreneurs people who wage moral crusades to control criminal law are a part of which view of crime?​
Sindrei [870]
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A $2,000 cash dividend is planned in 2019. No dividend was paid in 2018. 1,000 shares of 5% cumulative $10 par value preferred s
Irina-Kira [14]

Answer:

C) $1000

Explanation:

First lets calculate the cumulative preferred stock dividend for 2 years

(1000 * 10 ) * 5% = 500 / year

so for 2 years = $1000 since it is cumulative and not paid in one year is added to next year.

Total dividend payable = $2000

so for common stock whatever is left over is paid thus,

Common stock share = Total - Preferred cumulative = 2000 - 1000 = $1000

Hope that helps.

4 0
3 years ago
19. An investor has purchased a property that is giving him a 10% rate of return. Potential gross rents total $10,000.00 a month
gogolik [260]

Answer:

the market value of the property is $628,300

Explanation:

The computation of the market value of the property is shown below;

Gross rent $10,000 × 12= $120,000

Now

= $120,000 ×  .92 (occupancy rate)

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After that

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= $62,830

And ,finally the market value of the property is

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hence, the market value of the property is $628,300

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