Answer:
See below
Explanation:
Given the above information, we will apply the formula below to compute direct labor rate variance.
Direct labor rate variance =
(SR - AR) × AH
Stanadard (Rate) SR = $6
Actual Hour (AR) = $6.25
Actual Hour (AH) = 30,000
Then,
Direct labor rate variance
= ($6 - $6.25) × 30,000
= -$0.25 × 30,000
= -$7,500
= $30,000 Unfavorable
It is unfavourable because the actual rate is more than the budgeted rate.
Answer:
Quarterly dividend = $1.00
Required rate of return per annum = 8% = 0.08
Quarterly rate of return = 0.08/4 = 0.02
Current market price = <u>Quarterly dividend</u>
Quarterly required rate of return
= $1.00
0.08
= $12.5
The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500
Explanation:
The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.
<span>long-term debt=Totol liability-Current liability
long-term debt=$350-$130
=$220
long-term debt ratio=long term debt/ total assets
=$220/$1,000
=22%
so long term debt ratio is 22%</span>
Answer:
the recorded value of the new truck is $135,000
Explanation:
The computation of the recorded value of the new truck is given below;
In the case when the transaction has the commercial substance so the recorded value of the new truck would be equivalent to the invoice price or the fair value i.e. $135,000
Hence, the recorded value of the new truck is $135,000
The same would be considered and relevant
And all other values are to be ignored
Answer:
Explanation:
Horizontal analysis
December31/14 December31/13 Amount Incre. %incre.
over base over base
Net sales 600000 500000 100000 20.00%
Cost of goods sold414000 350000 64000 18.29%
Gross Profit 186000 150000 36000 24.00%
Operating Expensese 150000 120000 30000 25.00%
Net Income 36000 30000 6000 20.00%
Looking at the table above you’ll notice that the company is showing a healthy growth in all the figures bott at the top line as well as bottom line. The percentage in gross profit has increased and even higher than the % net sales increase over last year. This clearly reveals that the company has enhanced its economy of scale. But this enhancement has been invalidated by the corresponding increase in the operating expenses %.
Vertical analysis (having net sales as base)
Net sales 100% 100%
Cost of goods sold 69.00% 70.00%
Gross Profit 31.00% 30.00%
Operating Expenses 25.00% 24.00%
Net Income 6.00% 6.00%
There is not much variation in vertical analysis. The companies performance here is stable as last year.
