Answer: zU1[+JJY"{
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A: long-run growth rate eQvdi|6
3*(1+10%) =3.3 million 2'6:fr=R
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B: target payout ratio DNN60NX 5Q
Target payout ratio=3/15=20% ;5fq[v^P:
Dividend of 2008=18*2%=3.6 million <CnTiS#
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C: residual dividend approach wUbs9y<
Retained earnings=total new investment*(1-debt ratio) M)1?$'Aq
=12*(1-40%) M>BcYbXf
=7.2 million ]7ZY
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Residual dividend=18-7.2=10.8 million WKB8k-.]ww
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) g,N"o72)
Regular dividend=3*(1+10%) =3.3 million }L1-2
Extra dividend=residual dividend –regular dividend f*}H4H E O
=10.8-3.3 >(aGk{e1
=7.5 million =(x W7Pt~
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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. oMj;9,WK'
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. (IY=x{b
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. -:|1>og
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). },G>+ s8h
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Answer: s}pn5zMp:8
Notes: !VJ5(b
Actual price=18560/3200=$5.8/unit +%hA6n
Actual quantity materials per unit=3200/2000=1.6 kg/unit ^l(Kj3gM
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1).Standard quantity * standard price=standard total cost _
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(1.5*2000) * 6 =$18000 0DFxVH_xN
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials [e:mRMi
(3200-3000) * 6 =$1200 %j3*j
3)Actual quantity * (actual price- standard price)= Price variance of direct materials )+nY-DB(
3200 * (5.8 – 6) =$640 _26~<gU8
4)actual quantity *actual price =actual total cost ,%FBELqOW
3200 * 5.8 =$18560 X~ AE??
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A:Price variance of direct materials=(actual price-standard price)*actual quantity -m.SN>V
= (5.8-6)*3200 _k,/t10
= $640 【F】 3 oG5E"G
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. :$`"M#vMX
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B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price `n#
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= (3200-3000)*6 l }i
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=$1200 【U】 b@yGa%Gz@
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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. CqRG !J
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C:Total variance of direct materials=actual costs- standard cost V_&>0P{q
=18560-18000 2^}E!(<
=560 【U】