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A: long-run growth rate ,Fqz e/
3*(1+10%) =3.3 million /FY2vDfU6
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B: target payout ratio (X[2TT3j!
Target payout ratio=3/15=20% y>VcgLIB
Dividend of 2008=18*2%=3.6 million TQ :/RT
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C: residual dividend approach B)SLG]72f
Retained earnings=total new investment*(1-debt ratio) ZDLMMXx>
=12*(1-40%) FcbM7/
=7.2 million m@
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Residual dividend=18-7.2=10.8 million PFSLyV*
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) ^+70<#Xc
Regular dividend=3*(1+10%) =3.3 million ")#<y@Rv
Extra dividend=residual dividend –regular dividend tV;%J4E'
=10.8-3.3 cSP*f0n,eo
=7.5 million P @%
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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. 5rxA<Gs
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. 5CYo7mJ6+
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. `i!wq&1g7
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). +5
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Answer: pR os{Uq"
Notes: |lQ;ALH!
Actual price=18560/3200=$5.8/unit 'w/qcD-
Actual quantity materials per unit=3200/2000=1.6 kg/unit `d]Z)*9
=5]n\"/
1).Standard quantity * standard price=standard total cost ^y.UbI
(1.5*2000) * 6 =$18000 nn~YK
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials _cI_#
(3200-3000) * 6 =$1200 Z)<
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3)Actual quantity * (actual price- standard price)= Price variance of direct materials &vUq}r%P
3200 * (5.8 – 6) =$640 ReB7vpd
4)actual quantity *actual price =actual total cost ^J=hrYGA
3200 * 5.8 =$18560 Va<HU:<
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A:Price variance of direct materials=(actual price-standard price)*actual quantity #XIc
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= (5.8-6)*3200 O_,O,1
= $640 【F】 cA`4:gp
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. !|{IVm/J
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B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price *dE^-dm#
= (3200-3000)*6
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=$1200 【U】 1 TJ0D_,
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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. 3fS}:!sQ
x
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C:Total variance of direct materials=actual costs- standard cost fjz) Gp
=18560-18000 {")\0|2\x
=560 【U】