Answer: >/nS<y>
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A: long-run growth rate +Tc<|-qQn
3*(1+10%) =3.3 million V;mKJ.d${
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B: target payout ratio ,,S5 8\x
Target payout ratio=3/15=20% K2>(C$Z
Dividend of 2008=18*2%=3.6 million B5*{85p(u
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C: residual dividend approach 2-j+-B|i
Retained earnings=total new investment*(1-debt ratio) J!O5`k*.C
=12*(1-40%) HiCNs;t
=7.2 million GJai!$v
Residual dividend=18-7.2=10.8 million Q\&FuU
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) ZW }*]rg
Regular dividend=3*(1+10%) =3.3 million hNmC(saMGm
Extra dividend=residual dividend –regular dividend 'x{g P?.
=10.8-3.3 -q|K\>tgU
=7.5 million +'Pl?QyH
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2. N Company manufactures a kind of product used throughout the machinery industry. The standard price of the materials for the products is $6 per kilogram; the standard quantity of materials allowed per unit is 1.5 kilograms. During July, 2,000 units of the products were finished, for which 3,200 kilograms of materials were used at a total direct material cost of $18.560. 87c7p=/0`
A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. $wH{snX
B. Calculate the direct material quantity variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. A#M#JI-Y
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). trnjOm
4]A2Jl
E
Answer: )dgXS//Y
Notes: KRQKL`}}
Actual price=18560/3200=$5.8/unit DvHcT]l>5
Actual quantity materials per unit=3200/2000=1.6 kg/unit F7gipCc1We
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1).Standard quantity * standard price=standard total cost K,bv\j;f
(1.5*2000) * 6 =$18000 Re-~C[zwT
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials D% }?l
(3200-3000) * 6 =$1200 f@l$52f3D
3)Actual quantity * (actual price- standard price)= Price variance of direct materials m5Q,RwJ!xK
3200 * (5.8 – 6) =$640 rM#jxAb
4)actual quantity *actual price =actual total cost W76K/A<h>
3200 * 5.8 =$18560 ^5j|
IlG)=?8XZ
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A:Price variance of direct materials=(actual price-standard price)*actual quantity }GJIM|7^
= (5.8-6)*3200 U*`7
= $640 【F】 0b+OB pqN
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. 0ohpJh61Q
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B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price zQM3n
=y
= (3200-3000)*6 dqO!p6
=$1200 【U】 u"XqWLTV
=k6zUw;5 U
Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. e^Q$Tog<
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r,X5@/
C:Total variance of direct materials=actual costs- standard cost {%5k1,/(
=18560-18000 $7eO33Bm
=560 【U】