Answer: :wF(([&4p!
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A: long-run growth rate N@)g3mX>
3*(1+10%) =3.3 million ZWr\v!4
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B: target payout ratio [&39Yv.k,7
Target payout ratio=3/15=20% 8"4`W~ 3
Dividend of 2008=18*2%=3.6 million a;lCr|*
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C: residual dividend approach INkrG.=u
Retained earnings=total new investment*(1-debt ratio) YGNX
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=12*(1-40%) =DqGm]tA
=7.2 million x:@e ID
Residual dividend=18-7.2=10.8 million g$:
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) P EbB0GL
Regular dividend=3*(1+10%) =3.3 million ?hwQY}
Extra dividend=residual dividend –regular dividend JD'/m
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=10.8-3.3 c#rbyx?5
=7.5 million 6\]-J*e>
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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. d }]b
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. GY4yZa
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. fZGKVxo"
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). YV2^eGr.
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Answer: omY?`(=
Notes: HP
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Actual price=18560/3200=$5.8/unit vWgh?h/ot
Actual quantity materials per unit=3200/2000=1.6 kg/unit nbYaYL?&
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1).Standard quantity * standard price=standard total cost R8?A%yxf
(1.5*2000) * 6 =$18000 1.>`h:
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials co*5NM^
(3200-3000) * 6 =$1200 9\"~ G)
3)Actual quantity * (actual price- standard price)= Price variance of direct materials 'fgDe
3200 * (5.8 – 6) =$640 ^yb_aC w
4)actual quantity *actual price =actual total cost X~R
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3200 * 5.8 =$18560 "=RB
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A:Price variance of direct materials=(actual price-standard price)*actual quantity TS%cTh'ItH
= (5.8-6)*3200 M0]fh5O
= $640 【F】 |, :(3Ml
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. sG}9 l1
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B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price J^?O]
|
= (3200-3000)*6 mki=.l$O
=$1200 【U】 {UhZ\qe
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Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. Xau.4&\d
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d,H%
C:Total variance of direct materials=actual costs- standard cost Mu:H'$"'H
=18560-18000 x,V_P/?%
=560 【U】