Answer: H.YntFtD'
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A: long-run growth rate v
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3*(1+10%) =3.3 million 5nk]{ G> V
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B: target payout ratio 5-MI7I@l
Target payout ratio=3/15=20% 5y.kOe4vH
Dividend of 2008=18*2%=3.6 million ^JH 4:
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C: residual dividend approach YM5;mPR
Retained earnings=total new investment*(1-debt ratio) Z/%>/
=12*(1-40%) V-VR+ Ndz
=7.2 million 1%>/%eyn5
Residual dividend=18-7.2=10.8 million IF<jq\M
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) Nkc=@l{
Regular dividend=3*(1+10%) =3.3 million %kF6y_h`
Extra dividend=residual dividend –regular dividend R+P1 +5
=10.8-3.3 1B 2>8N
=7.5 million t)5bHVx
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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. Z[ys>\_To
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. ^W;\faG
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. aCQAh[T
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). B%[Yu3gBo
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Answer: WxFVbtw
Notes: +dlN^P647
Actual price=18560/3200=$5.8/unit <&B)i\j8=b
Actual quantity materials per unit=3200/2000=1.6 kg/unit w?Y;pc}1B
wD4Kil=v
1).Standard quantity * standard price=standard total cost "1Vuf<?C
(1.5*2000) * 6 =$18000 0ZTT^2R
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials O
o$i,|$$
(3200-3000) * 6 =$1200 G{)2f&<
3)Actual quantity * (actual price- standard price)= Price variance of direct materials (V#5Cs,o:
3200 * (5.8 – 6) =$640 "OkJPu2!W
4)actual quantity *actual price =actual total cost Ww:,O48%
3200 * 5.8 =$18560 %A%^;3@
6V W&An[6r
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A:Price variance of direct materials=(actual price-standard price)*actual quantity z]K:Amp;Z
= (5.8-6)*3200 X$)<>e]!>
= $640 【F】 n' &:c}zKO
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. DYx3NDX7
h<JV6h :8
B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price mSr(PIH{\
= (3200-3000)*6 8!sl) R
=$1200 【U】 }Dp/K4
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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.
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h_n`E7&bG
C:Total variance of direct materials=actual costs- standard cost t[ cHdI
=18560-18000 E0G"B'x
=560 【U】