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A: long-run growth rate ZZxt90YR'5
3*(1+10%) =3.3 million )WE OqaR]
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B: target payout ratio ~ :C`e4
Target payout ratio=3/15=20% VL\Ah3+
Dividend of 2008=18*2%=3.6 million w1F)R^tU
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C: residual dividend approach 44^jE{,9
Retained earnings=total new investment*(1-debt ratio) |a0@4
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=12*(1-40%) .UK`~17 !
=7.2 million 'UCClj;?K
Residual dividend=18-7.2=10.8 million 4
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D: regular-dividend-plus-extra dividend approach (according to the residual policy)
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Regular dividend=3*(1+10%) =3.3 million c;
1 f$$>b
Extra dividend=residual dividend –regular dividend @Ko}Td&E(
=10.8-3.3 [4])\q^q
=7.5 million
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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. j->5%y
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. 8RZqoQDH
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. 77]Fp(uI
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). >#;>6q9_
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Answer: oSR
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Notes:
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Actual price=18560/3200=$5.8/unit \%W"KLP
Actual quantity materials per unit=3200/2000=1.6 kg/unit *'@T+$3s
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1).Standard quantity * standard price=standard total cost a8y*Jz-E
(1.5*2000) * 6 =$18000 )4GCL(&
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials ?O#"x{Pk
（3200-3000） * 6 =$1200 )E e`1 1
3)Actual quantity * （actual price- standard price）= Price variance of direct materials {I$zm
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3200 * (5.8 – 6) =$640 ~f 8:sDJ
4)actual quantity *actual price =actual total cost uH
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3200 * 5.8 =$18560 %wq;<'W
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=^ x1: Ak
A：Price variance of direct materials=（actual price-standard price）*actual quantity vWYU'_=
= (5.8-6)*3200 p" Di;3!y!
= $640 【F】 Hq <!&
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. \-Q6z 8
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price Lnltt86
= (3200-3000)*6 / \k\HK8
=$1200 【U】 V9D>Xh!0H
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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. [:{HX U7y
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C：Total variance of direct materials=actual costs- standard cost Gd[: &h
=18560-18000 Xf|I=XK
=560 【U】
