Answer:
Portfolio SD = 0.18439 or 18.439%
Explanation:
The standard deviation of a stock or a portfolio is the measure of the total risk contained in the stock or portfolio. Risk can be defined as the volatility of the stock returns. To calculate the standard deviation of a two stock portfolio, we use the attached formula.
If the weight of stock x is 40%, the weight of stock y will be 1 - 40% = 60%
SD = √(0.4)^2 * (0.35)^2 + (0.6)^2 * (0.15)^2 + 2 * 0.4 * 0.6 * 0.25 * 0.35 * 0.15
SD = 0.18439 or 18.439%
Answer:
a. The cutoff value for investigation if the controller’s rule of thumb is to investigate all variances equal to or greater than 6 percent of standard cost is $2,280.
b.The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.
Explanation:
According to the given data, the standard direct-labor cost during each of these months was $38,000, therefore, in order to calculate the cutoff value for investigation, we would have make the following calculation:
Cutoff value for investigation =6% of Standard cost =$38,000 *6% =$2,280
The month that will have their direct-labor efficiency variance investigated will be the month of since june variance is 2,400 and hence is above $2,280.
Answer:
The total cost of direct material purchases for October is $6,788
Explanation:
For computing the total cost, first, we have to find the production cost which is shown below:
= October units + November or ending units × percentage given - October or beginning units × percentage given
= 4,500 units + 4,750 units × 10% - 4,500 units × 10 units
= 4,500 units + 475 units - 450 units
= 4,525 units
Now the total cost of material would be
= Production units × number of ounces × price per ounces
= 4,525 units × 3 ounces × $0.50
= $6,788