Answer: <mN.6@*{
VUAW/
A: long-run growth rate /R\]tl#2j
3*(1+10%) =3.3 million =8:m:Y&|`G
?"-%>y@w
B: target payout ratio sx7;G^93
Target payout ratio=3/15=20% M#ED49Dh>
Dividend of 2008=18*2%=3.6 million H*s_A/$
`L n,qiA
C: residual dividend approach Z&BJ/qk
\-
Retained earnings=total new investment*(1-debt ratio) qYjR
=12*(1-40%) GIG\bQSv2
=7.2 million WxO2
Residual dividend=18-7.2=10.8 million ^~\cx75D
)%H@.;cD_r
D: regular-dividend-plus-extra dividend approach (according to the residual policy) UolsF-U}'
Regular dividend=3*(1+10%) =3.3 million 5~)m6]-6
Extra dividend=residual dividend –regular dividend kY
MKVR
=10.8-3.3 <=D!/7$O
=7.5 million {6}H}_(]
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B.
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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. =LLix .
>
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. !Q(x A,p
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. od\-o:bS
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). i~1bfl
N<XS-XB,
Answer: )> >Tj7
Notes: OAx5 LTd
Actual price=18560/3200=$5.8/unit m+&)eQ:
Actual quantity materials per unit=3200/2000=1.6 kg/unit MC=pN(l
LEu_RU?
1).Standard quantity * standard price=standard total cost 9Q)9*nHe
(1.5*2000) * 6 =$18000 ^&^~LKl~
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials ]nmVT~lBe"
(3200-3000) * 6 =$1200 NmbA~i
3)Actual quantity * (actual price- standard price)= Price variance of direct materials 9&]g2iT P
3200 * (5.8 – 6) =$640 ?4QX;s7
4)actual quantity *actual price =actual total cost Rb!V{jQ
3200 * 5.8 =$18560 &?[
uY5Mk
z''ITX)oG
:&59N^So|
A:Price variance of direct materials=(actual price-standard price)*actual quantity
%4
= (5.8-6)*3200 =]Gw9sge@
= $640 【F】 Y7q=]
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. xb6y=L
b9 Gq';o
B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price kF,_o/Jc
= (3200-3000)*6 p>9-Ga
=$1200 【U】 i"4&UJu1;
[yFf(>B
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. PRTn~!Z0
pGO=3=O
:U>[*zE4&
C:Total variance of direct materials=actual costs- standard cost hzR1O(
=18560-18000 .A6i?iROe
=560 【U】