Answer:
The option (c) $89,100 unfavorable is correct
Explanation:
Solution
Recall that:
The actual price per gallon = $11.75
Actual gallons of material used= 5,000
Actual hourly labor rate= $17.00
Actual hours of production= 24,300
Standard price per gallon =$12.00
Rate of labor = $12.00
Now,
We find the total direct labor variance which is computed as follows:
Total Direct Labor Variance = Actual Direct Labor Cost - Standard Labor Cost
=24300*17 -3*9000*12
= 413,100 -32400
= -89,100 (unfavorable)
Therefore, the total direct labor variance is $89,100
Answer:
Cost of common from reinvested earnings = 10.44 %
so correct option is c. 10.44%
Explanation:
given data
D1 = $0.67
Po = $27.50
g = 8.00%
to find out
cost of common from reinvested earnings based on the DCF approach
solution
we get here Cost of common from reinvested earnings that is express a s
Cost of common from reinvested earnings =
+ g ............1
put here value we get
Cost of common from reinvested earnings =
+ 8%
Cost of common from reinvested earnings = 10.44 %
so correct option is c. 10.44%
By definition, the Weighted Average Cost of Capital or WACC is
the rate that an organization is expected to pay to all its security holders to
finance its assets.
Mathematically this can be calculated by summation of the
weighted average of the cost:
wacc = 0.4 * 0.06 + 0.15 * 0.075 + 0.45 * 0.13
wacc = 9.38%