Answer: ;HYEJ3
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A: long-run growth rate ,ye[TQ\,M
3*(1+10%) =3.3 million ,^n&Q'p3
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B: target payout ratio 3ouy-SQ
Target payout ratio=3/15=20% q'trd};xR
Dividend of 2008=18*2%=3.6 million Fa`%MR1
DXj>u9*%
C: residual dividend approach %Un wh1VG
Retained earnings=total new investment*(1-debt ratio) vx7=I\1
=12*(1-40%) WnGi;AGH=1
=7.2 million -Sh&x
Residual dividend=18-7.2=10.8 million "N'W~XPG
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) PI$i_3N
Regular dividend=3*(1+10%) =3.3 million ^6{op3R_
Extra dividend=residual dividend –regular dividend /
j "
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=10.8-3.3 GwXhn2
=7.5 million jLn#%Ia}
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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 $18.560. GL>YJ%
A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. ]7TOA$Q
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. z.(DDj
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). *otgI"y\
I
*N v|HST
Answer: K@:omT
Notes: }M(xN6E
Actual price=18560/3200=$5.8/unit
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Actual quantity materials per unit=3200/2000=1.6 kg/unit i/C%
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1).Standard quantity * standard price=standard total cost aeNbZpFQ
(1.5*2000) * 6 =$18000 569p/?
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials sMVk]Mb
(3200-3000) * 6 =$1200 %MGt3)
3)Actual quantity * (actual price- standard price)= Price variance of direct materials PPFt
p3C
3200 * (5.8 – 6) =$640 jPo,mz&^
4)actual quantity *actual price =actual total cost 7*M-?
3200 * 5.8 =$18560 dPpJDY0
$8(QBZq
Hn(Eut7%
A:Price variance of direct materials=(actual price-standard price)*actual quantity 0#=xUk#LP`
= (5.8-6)*3200 7@
g0>1Fz
= $640 【F】 NNr6~m)3v
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. QL7.QG
F
=*4]O
B:Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price $nW9VMa
= (3200-3000)*6 C+M]"{Y+
=$1200 【U】 J2
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S:i#|T."
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. &uc`w{,Zs
'
=5B
jTg~]PQ^
C:Total variance of direct materials=actual costs- standard cost i5Sya]FN
=18560-18000 o
o'7
=560 【U】