Answer: e$s&B!qJ
ML >M:Ik+
A: long-run growth rate ?+EAp"{j
3*(1+10%) =3.3 million Az@@+?,%Y
%JBLp xnq
B: target payout ratio '/<\X{l8
Target payout ratio=3/15=20% _6fy'%J=U
Dividend of 2008=18*2%=3.6 million ~u$ cX1M
9KX% O-'
C: residual dividend approach fof}I:vO
Retained earnings=total new investment*(1-debt ratio) lPR^~&/
=12*(1-40%) `T*Y1@FV
=7.2 million KyrZ&E.`
Residual dividend=18-7.2=10.8 million Rf0so
nT> v
D: regular-dividend-plus-extra dividend approach (according to the residual policy) nnn \
Regular dividend=3*(1+10%) =3.3 million )ItABl[{
Extra dividend=residual dividend –regular dividend n>pJ/l%`
=10.8-3.3 :!s7B|_U
=7.5 million BlpyE[h
T
a2.6 S./
/%;J1 {O
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. ,G0"T~
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. vk
E]$4P[$
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. d_we ?DZ|
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). 'nPI
zK<v
B0yJ9U= Fj
Answer: >rlUV"8jY;
Notes: rSv,;v
Actual price=18560/3200=$5.8/unit \2; !}
Actual quantity materials per unit=3200/2000=1.6 kg/unit ?u#s ?$ Y?
?jz\[0)s
1).Standard quantity * standard price=standard total cost \bT0\
(Js\
(1.5*2000) * 6 =$18000 d,?D '/
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials %ud-3u52M8
（3200-3000） * 6 =$1200 Hl X~a:.7
3)Actual quantity * （actual price- standard price）= Price variance of direct materials O\f`+Q`0
3200 * (5.8 – 6) =$640 zwC ,,U
4)actual quantity *actual price =actual total cost +JYb )rn$^
3200 * 5.8 =$18560 Njg87tKB
;-
"!p
gOnZ#
A：Price variance of direct materials=（actual price-standard price）*actual quantity _'w:Sx?d7
= (5.8-6)*3200 MH)V=xU|)
= $640 【F】 />E
ILPPb
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. odca?
! $mY.uu
B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price +pgHCzwJE
= (3200-3000)*6 :q3w;B~
=$1200 【U】 W#! AZ !
1\,k^Je7
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. 6I RRRt O(
|_ED*ATR=
~ zfF*A
C：Total variance of direct materials=actual costs- standard cost Il4]1d|
=18560-18000 BPv+gx(>k
=560 【U】
