Answer: <4vCx
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6-F)+
A: long-run growth rate Z@&%"nO
3*(1+10%) =3.3 million Pvi2j&W84
[R%*C9Y d
B: target payout ratio >A
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Target payout ratio=3/15=20% m[3c,Axl7
Dividend of 2008=18*2%=3.6 million )lS04|s
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C: residual dividend approach p!^K.P1 '
Retained earnings=total new investment*(1-debt ratio) WlvT&W
=12*(1-40%) js <Up/1
=7.2 million A-=hvJ5T
Residual dividend=18-7.2=10.8 million Z.Z;p/4F
*!&?Xy%\"j
D: regular-dividend-plus-extra dividend approach (according to the residual policy) \OFmd!Cz
Regular dividend=3*(1+10%) =3.3 million sRT H_]c
Extra dividend=residual dividend –regular dividend ^tG,H@95
=10.8-3.3 Q*ELMib
=7.5 million Aixe?A_x
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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 $18.560. Jk&!(YK&
A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. 0LL0\ly]
B. Calculate the direct material quantity variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. ki@C}T5
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). HB5-B XBU
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Answer: kG!hqj
Notes: DH+kp$,}
Actual price=18560/3200=$5.8/unit r/ g{j
Actual quantity materials per unit=3200/2000=1.6 kg/unit "D_:`@V(
+<[ q"3
1).Standard quantity * standard price=standard total cost !JrKTB%
(1.5*2000) * 6 =$18000 nTr]NBR
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials K)J_q3qo
(3200-3000) * 6 =$1200 &k}B66
3)Actual quantity * (actual price- standard price)= Price variance of direct materials {Oy|c
3200 * (5.8 – 6) =$640 `j)56bR
4)actual quantity *actual price =actual total cost S8/~'<out
3200 * 5.8 =$18560 )/)u.$pi
$RY GAh
54>0Dv??H
A:Price variance of direct materials=(actual price-standard price)*actual quantity jwE=
= (5.8-6)*3200 !Ea!
"}
= $640 【F】 z!bT^_Cc0
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. !fn%Q'S
bs~P
B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price zM&ro,W
= (3200-3000)*6 2 >O [Y1
=$1200 【U】 |LQ%sV
FD
8Lk
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#rQJ
T&pCLvkz
6&SNFOX{@
C:Total variance of direct materials=actual costs- standard cost JnK<:]LcK
=18560-18000 Q?>r:vMi
=560 【U】