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Ronch [10]
3 years ago
8

Snow White Frame Company's cost formula for its supplies cost is $1,740 per month plus $8 per frame. For the month of March, the

company planned for activity of 614 frames, but the actual level of activity was 620 frames. The actual supplies cost for the month was $6,850. The activity variance for supplies cost in March would be closest to:
Business
1 answer:
Mademuasel [1]3 years ago
3 0

Answer:

$48 U

Explanation:

Calculation to determine what The activity variance for supplies cost in March would be closest to:

First step is to calculate the Planning supply activity cost

Planning supply activity cost = (614 × $8) +$1,740

Planning supply activity cost = 4,912+$1740

Planning supply activity cost = $6652

Second step is to calculate the Actual supply activity cost

Actual supply activity cost = (620 × $8) + $1,740

Actual supply activity cost =4960+$1,740

Actual supply activity cost =$6,700

Now let calculate the Activity variance for supplies cost using this formula

Activity variance for supplies cost = Actual activity cost – Planning activity cost

Let plug in the formula

Activity variance for supplies cost= $6,700 - $6,652

Activity variance for supplies cost= $48 Unfavorable

Therefore The activity variance for supplies cost in March would be closest to:$48 U

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The customer service manager for the XYZ Fastener Manufacturing Company examined 60 vouchers and found 9 vouchers containing err
fredd [130]

Answer:

= (0.043 , 0.257)

Explanation:

p = 9/60 = 0.15

Z score for 98% confidence interval = Z0.01 = 2.33

The Confidence interval = (p + Z0.01 * sqrt(p * (1 - p) / n))

= (0.15 + 2.33 * sqrt(0.15 * (1 - 0.15) / 60))

= (0.15 + 0.107)

= (0.043 , 0.257)

6 0
3 years ago
Read 2 more answers
What is Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B? Portfolio Average Retur
inn [45]

Answer:

The Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

Explanation:

<em>Solution</em>

Given that:

Now,

The Jensen’s alpha of a Portfolio is computed by applying  the formula  below:

Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return ) ) ]

For the information given in the question we have the following,

The Risk free rate of return = 3. 1%

In order to find the Jensen’s alpha we have to first get the following from the information given in the question :

1. Portfolio Return

2. Portfolio Beta

3.Market Rate of Return

Thus,

(A)Calculation of Portfolio Return :

The formula for calculation of Portfolio Return is  given as:

E(RP) = ( RA * WA )+ ( RB * WB )

Where

E(RP) = Portfolio Return

RA = Average Return of Portfolio A ; WA = Weight of Investment in Portfolio A

RB = Average Return of Portfolio B ;  WB = Weight of Investment in Portfolio B

For the information given in the question we have the following:

RA = 18.9 %, WA = 45 % = 0.45, RB = 13.2 %,  WB = 55 % = 0.55

By applying the values in the formula we have

= ( 18.9 % * 0.45 ) + ( 13.2 % * 0.55 )

= 8.5050 % + 7.2600 % = 15.7650 %

(B). Calculation of Portfolio Beta:

Now,

The formula for calculating the Portfolio Beta is

ΒP = [ ( WA * βA ) + ( WB * βB ) ]

Where,

βP = Portfolio Beta

WA = Weight of Investment in Portfolio A = 45 % = 0.45 ; βA = Beta of Portfolio A = 1.92

WB = Weight of Investment in Portfolio B = 55 % = 0.55 ; βB = Beta of Portfolio B = 1.27

By Applying the above vales in the formula we have

= ( 0.45 * 1.92 )   + ( 0.55 * 1.27 )

= 0.8640 + 0.6985

= 1.5625

(C). Calculation of Market rate of return :

Now,

The Market Risk Premium = Market rate of return - Risk free rate

From the Information given in the Question we have

The Market Risk Premium = 6.8 %

Risk free rate = 3. 1 %

Market rate of return = To find

Then

By applying the above information in the Market Risk Premium formula we have

6.8 % = Market rate of Return - 3.1 %

Thus Market rate of return = 6.8 % + 3.1 % = 9.9 %

So,

From the following  information, we gave

Risk free rate of return = 3.1% ; Portfolio Return = 15.7650 %

The Portfolio Beta = 1.5625 ; Market Rate of Return = 9.9 %

Now

Applying the above values in the Jensen’s Alpha formula we have

The Jensen's alpha = Portfolio Return − [Risk Free Rate of Return + ( Portfolio Beta * (Market Rate of Return − Risk Free Rate of Return )) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * ( 9.9 % - 3.1 % ) ) ]

= 15.7650 % - [ 3.1 % + ( 1.5625 * 6.8 % ) ]                  

= 15.7650 % - [ 3.1 % + 10.6250 % ]

= 15.7650 % - 13.7250 %

= 2.0400 %

= 2.04 % ( when rounded off to two decimal places )

Therefore, the Jensen's alpha of a portfolio comprised of 45 percent portfolio A and 55 percent of portfolio B = 2.04 %

7 0
3 years ago
Shirley Macuga is the world’s fastest typist and is also a world famous brain surgeon. She earns $5,000/hour operating on brains
mote1985 [20]

Answer:

Yes

Explanation:

30 mins of typing would have an opportunity cost of $2500 of surgery

She's paying $2000 and earning $2500.

So she is smart

8 0
3 years ago
Bernadette's in charge of marketing a new product in a highly competitive segment. She's planning to launch a Google Search camp
ELEN [110]

Answer:

Her business will have a competitive presence with similar businesses during searches

Explanation:

Google search campaign refers to a form of online advertising wherein an advertisement is displayed in the search listings. It refers to advertisements getting displayed in google search results.

A company or the advertiser may choose a keyword for itself which shall initiate the search and displays it's advertisement.

In the given case, the marketing in charge is planning to launch such an advertisement campaign.

Such a strategy would place her business in contention and competition with similar other businesses during the searches. This shall keep and maintain her business presence felt  and active during the searches.

7 0
2 years ago
Campbell Co. has net sales revenue of $1,000,000, cost of goods sold of $680,000, and all other expenses of $232,000. The beginn
ehidna [41]

Answer:

3.33

Explanation:

The fixed asset turnover is the ratio between total sales over fixed assets. It measures how the company uses its fixed assets to generate sales. A low ratio means that the company has probably over-invested in fixed assets.

Fixed asset turnover ratio = total sales / average fixed assets

Fixed asset turnover ratio = $1,000,000 / [($288,800 + $311,200) / 2] = $1,000,000 / ($600,000 / 2) = $1,000,000 / $300,000 = 3.33

4 0
3 years ago
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