Answer:
the capital structure weight of the firm's equity will be 57.14 %.
Explanation:
Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.
A debt–equity ratio of 0.75 means:
Debt : Equity = 0.75 : 1
The Total Ratio will be = 0.75 + 1.00
= 1.75
Therefore, the capital structure weight of the firm's equity will be :
Equity Weight = Equity Ratio ÷ Total Ratio
= 1.00 ÷ 1.75
= 0.5714 or 57.14 %
If the total revenue variance is favorable and the revenue price variance is unfavorable, then the revenue volume variance must a.exceed the revenue price variance and be favorable b.be less than the revenue price variance and be favorable c.be less than the revenue price variance and be unfavorable d.be equal to the revenue price variance and be favorable
Answer: a.exceed the revenue price variance and be favorable
Explanation:
Revenue Volume x Revenue Price = Total Revenue
From the above formula, for the Total Revenue to be variated positively and yet the Revenue Price is of Negative Variance, it would follow logically that the other variable in the transaction contributed to the favorable variance of the Total Revenue apart from the Revenue Price.
The only other variable is the Revenue Volume. The Revenue volume must therefore have been large and favorable enough to offset the Negative Variance of the Revenue Price.
Miramar Tire and Rubber Company has capacity to produce 119,000 tires. Miramar presently produces and sells 91,000 tires for the North American market at a price of $99.00 per tire. Miramar is evaluating a special order from a South American automobile company, Ria Motors. Rio Motors is offering to buy 11,000 tires for $83.25 per tire. Miramar's accounting system indicates that the total cost per tire is as folows: Direct materials Direct labor Factory overhead (70% variable) Selling and administrative expenses (30% variable) Total 538 23 20 $95 Miramar pa s a sales commiss on equal to 5% of t e seling price on North American arders, whichis n uded in the variable portion of the selling and adm?n strative expenses. However, this special order would not havea sales comm saan. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5.00 per tire. In addition, Rio has made the order conditional on Miramar Tire and Rubber Company receiving a Brazilian safety certification. Rio estimates that this certification would cost Miramar Tire $72,800
a. Prepare a differential analysis report for the proposed sale to Rio Motors, Round your answers to the nearest cent.
b. What is the minimum price per unit that would be financially acceptable to mirama?Round your answers to the nearest cent.
Answer:
a) spare capacity = 119,000 - 91,000 = 28,000 tires
normal sales price $99 per tire
special order for 11,000 at $83.25
Direct materials $38
Direct labor $14
Factory overhead (70% variable) $23
Selling and administrative expenses (30% variable) $20
Total $95
total avoidable costs = ($23 x 30%) + ($20 x 70%) = $20.90
total unavoidable costs = $74.10
additional costs related to the special order $5 per tire (shipping costs) + $72,800 in total
accept special reject special differential
order order amount
sales revenue $915,750 $0 $915,750
variable prod. costs ($815,100) $0 ($815,100)
variable costs ($55,000) $0 ($55,000)
associated to special order
certification costs ($72,800) $0 ($72,800)
associated to special order
total ($27,150) $0 ($27,150)
b) minimum price per unit = ($27,150 / 11,000) + $83.25 = $85.7182 ≈ $85.72
What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? Interest is paid annually.
Answer:
Coupon rate is 8%
Explanation:
We can ascertain the coupon rate by first of all determine the amount of coupon with pmt excel function below:
=pmt(rate,nper,-pv,fv)
rate is yield to maturity of 6%
nper is the number of coupons before maturity i.e 3 annual coupons in three years
pv is the current market price of $1,053.46
fv is the par value of $1,000
=pmt(6%,3,-1053.46,1000)=80
Coupon rate=pmt/face value=80/1000=8%
This year, Nancy, a single taxpayer, paid $12,300 of real estate taxes on her personal residence and $7,500 of state income taxes. Assuming Nancy itemizes her deductions, what amout can she deduct for taxes this year
Answer:
$12,500
Explanation:
Nancy can deduct both her real estate taxes and state income taxes from her gross income. This way, she will end up paying less federal income taxes. The exact amount that she saves depends on her tax bracket, which is not given.
Assuming Nancy doesn't take the standard deduction, she can deduct 100% of her state income taxes ($7,500) and up to $5,000 in real estate taxes since she is a single taxpayer. Her total deduction on these two items will be $12,500.
Determine which type of merger has occurred for this scenario. GrillerTech manufactures propane grills for cooking. It wants to form a merger with Tinseltech, a party favor manufacturing company. This would be a __________ merger.
Answer:
Vertical merger
Explanation:
A vertical merger occurs between firms in the same industry but they are usually in different stages of the supply chain.
In this case, Tinseltech wants to merge with a company that produces raw materials needed by Tinseltech
I hope my answer helps you
Answer:
vertical
Explanation:
A vertical merger is when two or more companies that are part of the same industry but that have different products in the supply chain merge. According to that, the answer is that this would be a vertical merger because the two companies have products that are used in the same industry and the merge allows them to increase the synergies and have control of the supply chain.
2014 ending inventory was overstated by $25,000, but it was too late to correct the financial statements. Which of the following describes the effect of the inventory error on the 2014 financial statements?A. Net income and stockholders' equity are both understated.
B. Net income is understated and stockholders' equity is correct.
C. Net income and stockholders' equity are both overstated.
D. Net income and stockholders' equity are both unaffected.
Answer:
C. Net income and stockholders' equity are both overstated.
Explanation:
In the income statement , ending inventory is deducted from the addition of the beginning inventory and net purchases to arrive at the cost of goods sold. Therefore, the cost of goods can be stated as an equation stated as follows:
Cost of goods sold = Beginning inventory + Net purchases - Ending inventory
From the above equation, it can be observed that if the ending inventory is overstated, cost of goods sold will be understated by that amount.
Since gross income is determined by deducting cost of goods sold from the net sales, an understated cost of goods sold will result in an overstated gross income and subsequently overstated net income.
Since net income is one of the components of the stockholders' equity, an overstated net income will leads to an overstated stockholders' equity.
Therefore, the correct option is C. Net income and stockholders' equity are both overstated.
Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing on July 31, the end of the current year:
Common Stock, $10 par $440,000
Paid-In Capital from Sale of Treasury Stock-Common 33,200
Paid-In Capital in Excess of Par-Common Stock 132,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Preferred 4% Stock, $50 par 1,020,000
Retained Earnings 2,057,400
Treasury Stock-Common 38,500
Fifty thousand shares of preferred and 200,000 shares of common stock are authorized. There are 3,500 shares of common stock held as treasury stock.
Required:
Prepare the Stockholders' Equity section of the balance sheet as of July 31, the end of the current year.
Answer:
Specialty Auto Racing Inc.Stockholders' Equity section of the balance sheet as at July 31:
Authorized Share Capital:
Common Stock, 200,000 $10 par
Preferred 4% Stock, 50,000 $50 par
Common Stock, Issued share capital, $10 par $440,000
Paid-In Capital in Excess of Par-Common
Stock (132,000 + 33,200) 165,200
Treasury Stock-Common, 3,500 shares (38,500)
Preferred 4% Stock, $50 par 1,020,000
Paid-In Capital in Excess of Par-Preferred Stock 61,200
Retained Earnings 2,057,400
Total Equity $3,705,300
Explanation:
The Stockholders equity section of the balance reports the Preferred stock, common stock, additional paid‐in‐capital, retained earnings, and treasury stock. It also discloses information regarding the par value, authorized shares, issued shares, and outstanding shares for each type of stock.
The Paid-in Capital from sale of Treasury stock- common of $33,200 is added to the Paid-in Capital in Excess of Par- Common Stock as there is no separate account for it.
A company had the following purchases during its first year of operations:
January: 17 units at $127
February: 27 units at $137
May: 22 units at $147
September: 19 units at $157
November: 17 units at $167
On December 31, there were 61 units remaining in ending inventory. These 61 units consisted of 9 from January, 11 from February, 13 from May, 11 from September, and 17 from November. Using the specific identification method, what is the cost of the ending inventory?
a. $8,960.
b. $7,620.
c. $9,294.
d. $9,127.
e. $7,714.
Answer:
Ending inventory value= $9,127
Explanation:
Giving the following information:
January: 17 units at $127
February: 27 units at $137
May: 22 units at $147
September: 19 units at $157
November: 17 units at $167
Using the specific identification method, we need to multiply each unit for its specific cost.
Ending inventory:
January= 9*127= 1,143
February= 11*137= 1,507
May= 13*147= 1,911
September= 11*157= 1,727
November= 17*167= 2,839
Ending inventory value= $9,127
On January 1, 2021, an investor paid $296,000 for bonds with a face amount of $316,000. The contract rate of interest is 12% while the current market rate of interest is 15%. Using the effective interest method, how much interest income is recognized by the investor in 2022 (assume annual interest payments and amortization)
Answer:
$45,372
Explanation:
The computation of the interest income using the effective interest method is shown below
Interest Income is
= [Paid amount + (Paid amount × current market rate of interest) - (face value of the bond × contract rate of interest)] × current market rate of finterest
= [$296,000 + ($296,000 × 15%) - ($316,000 × 12%)] × 15%
= [$296,000 + $44,400 - $37,920)} × 15%
= $45,372
We simply applied the above formula
Billy Thornton borrowed $20,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses a 360-day year. How much interest would Billy have to pay in a 30-day month
Answer:
Interest for a 30 day month = $120.83
Explanation:
Interest rate rate is the price paid by a borrower for the use of money and the return earned by a lender for postponing his consumption in favour of investment.
Interest is computed in two ways; Simple interest and compound interest
Simple interest: This is the interest paid on the principal invested or borrowed. To calculate simple interest, we use the formula below:
Annual Simple interest= Principal × interest Rate (%) × Time.
Monthly simple interest =Principal ×interest Rate (%)× 30/360
= 20,000 × 7.25% × 30/360= 120.833
Interest for a 30 day month = $120.83
Chutes & Co. has interest expense of $ 1.25 million and an operating margin of 10.8 % on total sales of $ 30.7 million. What is Chutes' interest coverage ratio?
Answer:
2.7 times
Explanation:
Chutes and co. has an interest expense of 1.25 million
Operating margin of 10.8%
Total sales of 30.7 million
The first step is to calculate the operating income
Operating income= Sales×operating margin
= $30,700,000×10.8/100
= $30,700,000×0.108
= $3,315,600
Therefore, the interest coverage ratio can be calculated as follows
Interest coverage ratio= Operating income/Interest expense
= $3,315,600/$1,250,000
= 2.65
= 2.7 times
Hence Chutes' interest coverage ratio is 2.7 times
Gross Profit MethodBased on the following data, estimate the cost of the ending merchandise inventory: Sales (net) $9,250,000 Estimated gross profit rate 36% Beginning merchandise inventory $180,000 Purchases (net) 5,945,000 Merchandise available for sale $6,125,000
Answer:
$205,000
Explanation:
The computation of the cost of the ending merchandise inventory is shown below:-
Cost of the ending merchandise inventory = Merchandise available for sale - (Net Sales - Gross profit)
= $6,125,000 - ($9,250,000 - $9,250,000 × 36%)
= $6,125,000 - ($9,250,000 - $3,330,000)
= $205,000
Therefore we applied the above formula so that the cost of ending merchandise inventory could come
Assume that today is December 31, 2019, and that the following information applies to Abner Airlines: After-tax operating income [EBIT(1 - T)] for 2020 is expected to be $700 million. The depreciation expense for 2020 is expected to be $150 million. The capital expenditures for 2020 are expected to be $375 million. No change is expected in net operating working capital. The free cash flow is expected to grow at a constant rate of 7% per year. The required return on equity is 13%. The WACC is 11%. The firm has $199 million of non-operating assets. The market value of the company's debt is $3.534 billion. 120 million shares of stock are outstanding. Using the corporate valuation model approach, what should be the company's stock price today
Answer:
The company's stock price today should be $71.17 per share.
Explanation:
The corporate valuation model approach can be used to estimate this by using the following steps:
Step 1: Calculation of the free cash flow
Free cash flow is the cash a firm generates after accounting for capital expenditure. This can be estimated using the following formula:
Free Cash Flow (FCF) = After-tax operating income + Depreciation expenses - Capital expenditure
For this question, we therefore have:
Free Cash Flow (FCF) = $700 + $150 - $375 = $475 million
Step 2: Calculation of Value of operations (Vo)
Vo = FCF / (WACC - FCF growth rate) = 475 / (11% - 7%) = $11,875 million
Step 3: Calculation of the Firm value
Firm value = Vo + Non-operating assets = $11,875 + $199 = $12,074 million
Step 4: Calculation of value of equity
Value of equity = Firm value - Debt = $12,074 - $3,534 = $8,540 million
Note: The correct amount of debt is $3,534 not $3.540 as mistakenly given, may be due to typographical error, in the question.
Step 5: Calculation of stock price per share today
Stock price per share = Value of equity / Number of shares outstanding = $8,540 / 120 = $71.17 per share
Therefore, the company's stock price today should be $71.17 per share.
Ace Industries has current assets equal to $3 million. The company's current ratio is 1.5, and its quick ratio is 1.1. What is the firm's level of current liabilities? What is the firm's level of inventories? Do not round intermediate calculations. Round your answers to the nearest dollar.
Answer:
a
Explanation:
I have no clue but good luck on test
Wilt's has earnings per share of $2.98 and dividends per share of $0.35. What is the firm's sustainable rate of growth if its return on assets is 14.6% and its return on equity is 18.2%?
Answer:
16.06%
Explanation:
According to the given situation the computation of sustainable rate of growth is shown below:-
Sustainable Growth Rate = Return on equity × (1 - Dividend payout ratio)
= 18.2% × ( 1 - 0.35 ÷ 2.98)
= 18.2% × ( 1 - 0.1174)
= 16.06%
Therefore for computing the sustainable rate of growth we simply applied the above formula.
The following is TRUE about Inventory:________.A. Firms decrease inventory because there is a risk of significant and unpredictable fluctuations in downstream demand B. Firms decrease inventory because there are price discounts or transportation discounts associated with ordering in larger quantities C. Firms decrease inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures D. Firms decrease inventory because there is a risk of interruptions in the flow of components/materials from upstream suppliers E. Firms decrease inventory because there is a risk of interruptions due to unreliable productivity and quality.
Answer:
The correct answer is option (c).
Explanation:
Solution
From the question sated above the answer is, Firms or organisation decrease inventory because the more we spend on inventory, the more we will need to spend on the other related inventory expenditures.
The reason is because if the inventory is kept full or complete, then the cost related or connected with the maintenance of the inventory increases or goes up and it is not beneficial for the company itself.
The true statement about inventory is that Firms decrease inventory because the more we spend on inventory, the more we need to spend on other inventory-related expenditures.
Inventory management is simply known as a systematic approach to sourcing, storing, and selling inventory.
It includes raw materials and finished goods. It is also regarded as having the right stock and at the right cost.
Inventory management is used by companies to know which and how much stock to buy and at what time.
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You’re trying to save to buy a new $245,000 Ferrari. You have $50,000 today that can be invested at your bank. The bank pays 4.3 percent annual interest on its accounts. How long will it be before you have enough to buy the car?
Answer:
38 years
Explanation:
You want to find n such that the multiplier over n years gets you from 50,000 to 245,000.
245,000 = 50,000(1 +4.3%)^n
4.9 = 1.043^n
log(4.9) = n·log(1.043)
n = log(4.9)/log(1.043) ≈ 37.7
It will be about 38 years before you will have enough to afford the car at today's price.
_____
Comment on car prices
The rate of inflation of car prices has been about 1.67% since 1953, so taking that into account, you will need much more than $245000 to buy the car. It will take more than 62 years for your bank account to catch up to the price of the car.
The problem of ________________ in insurance markets is that insurance companies are unable to ______________ . Group of answer choices
Answer:
adverse selection, differentiated those with high risk and low risk
Explanation:
Adverse selection refers to the selection in which an individual gained the insurance at a cost but it is below the level of risk. In other words we can say that the applicant pay the lower amount of premium in case of higher premium charged by the company as the company is not aware of the fact
In the given case, the problem of adverse selection is there that unable to differentiate between a high level of risk and lower level of risk
Examples of cash equivalents include all of the following except:
a. U.S. Treasury bills.
b. notes issued by major corporations (referred to as commercial paper).
c. currency and coins.
d. long-term notes receivable.
Answer:
d. Long-term Notes Receivable.
Explanation:
Cash and cash equivalent are those financial instruments which can be converted into cash easily and within a short period of time. Cash and cash equivalent includes the treasury bills, commercial papers( notes issued by major corporation), bills, currencies and coins but it does not include the long term notes receivable.
All the equivalents are easy to convert to cash easily except the Long term notes receivables because it requires to wait for some long period before such note can be converted into money.
In 2017, Costello Company performs work for a customer and bills the customer $10,000; it also pays expenses of $3,000. The customer pays Costello in 2018. If Costello uses the accrual-basis of accounting, then Costello will report:_____
a. revenue of $10,000 in 2018.
b. revenue of $10,000 in 2017.
c. net income of $7,000 in 2018.
d. expenses of $3,000 in 2018.
Answer: revenue of $10,000 in 2017
Explanation:
Accrual basis of accounting is a method that is used in accounting whereby the revenue or expenses have to be recorded when the transaction is made and not when the payment dor the transaction is made or received.
Since we are told that Costello Company performs work for a customer and bills the customer $10,000 in 2017, therefore if Costello uses the accrual-basis of accounting, then Costello will report revenue of $10,000 in 2017.
The following accounts were taken from the Adjusted Trial Balance columns of the end-of-period spreadsheet for April 30, for Finnegan Co.:
Accumulated Depreciation $32,000
Fees Earned 78,000
Depreciation Expense 7,250
Rent Expense 34,000
Prepaid Insurance 6,000
Supplies 400
Supplies Expense 1,800
Requried:
Prepare an income statement.
Answer:
Its 4oo
Explanation:
Its option C
Answer:
Fees Earned: 78,000
Expenses:
Rent Expense: (7,250)
Depreciation Expense: (34,000)
Supplies Expense: (1,000)
Total Expenses: 43,050
Net Income: 34,950
A factory currently manufactures and sells 800 boats per year. Each boat costs $5,000 to produce. $4,000 of the per-boat costs are for materials and other variable costs, while the per-boat fixed costs (incurred on yearly rent, administrative, and other fixed costs) are $1,000. If boat orders increase to 1000 boats per year, how do per-unit costs change?
Answer:
Total unitary cost= $4,800
Explanation:
Giving the following information:
Actual units= 800
Total fixed costs= 1,000*800= 800,000
UNitary variable cost= $4,000
Units increase= 200
On unitary bases, variable costs remain constant. On the contrary, fixed costs vary at a unitary level. Now, the same amount of costs is divided by a larger number of units.
Unitary fixed overhead= 800,000/1,000= $800
Total unitary cost= 4,000 + 800= $4,800
The green giant has 4 percent profit margin and a 30 percent dividend payout ratio. The total assets turnover is 1.2 times and the equity multiplier is 1.6. What is the sustainable rate of growth?
Answer:
5.68%
Explanation:
The green giant has a 4% profit ratio
= 4/100
= 0.04
The dividend payout ratio is 30%
= 30/100
= 0.3
The total assets turnover is 1.2 times
The equity multiplier is 1.6
The first step is to calculate the return on equity
ROE= Profit margin×Total assets turnover×Equity multiplier
= 0.04×1.2×1.6
= 0.0768 or 7.68%
The next step is to calculate the Plowback ratio
b = 1-dividend payout ratio
b = 1-0.3
b = 0.7
Therefore, the sustainable growth rate can be calculated as follows
= ROE×b/(1-(ROE×b)
= 0.0768×0.7/(1-(0.0768×0.7)
= 0.05376/(1-0.05376)
= 0.05376/0.94624
= 0.05681
= 5.68%
Hence the sustainable rate of growth is 5.68%
The capital accounts of Hawk and Martin have balances of $160,000 and $140,000, respectively, on January 1, the beginning of the current fiscal year. On April 10, Hawk invested an additional $10,000. During the year, Hawk and Martin withdrew $86,000 and $68,000, respectively, and net income for the year was $258,000. The articles of partnership make no reference to the division of net income. Based on this information, the statement of partners' equity would show what amount in the capital account for Martin on December 31?
Answer:
$213,000
Explanation:
We will figure out first Hawk's share of profit to reach the capital account is shown below:-
Hawk's share of profit = $258,000 ÷ 2
= $129,000
Capital account of Hawk as on December 31 = Opening Balance + Capital Introduced + Profit Share - Drawings
= $160,000 + $10,000 + $129,000 - $86,000
= $213,000
So, we have got the answer after solve the below formula.
As a person engaged in the image business, the impression you project consists of your outward apperance the conduct you exhibt in the workplace is known as
Answer:As a person engaged in the image business, the impression you project consists of your outward apperance the conduct you exhibt in the workplace is known as
Explanation:j
Suppose that Antonio, an economist from an AM talk radio program, and Caroline, an economist from a school of industrial relations, are arguing over government intervention. The following dialogue shows an excerpt from their debate:
Caroline: The usefulness of government intervention in the economy is a long-standing issue that economists continue to debate.
Antonio: I feel that government involvement in the economy should be reduced because government programs cause more harm than good.
Caroline: While I do agree that government programs can be inefficient, I really think they are necessary to help the less fortunate.
1. The disagreement between these economists is most likely due to
a. differences in values
b. differences in scientific judgement
c.differences in perception verse reality.
2. Despite their differences, with which proposition are two economists chosen at random most likely to agree?
a. Lawyers make up an excessive percentage of elected officials.
b. Minimum wage laws do more to harm low-skilled workers than help them.
c. Tariffs and import quotas generally reduce economic welfare.
Answer:
1) Option A. differences in values
2) Option C. Tariffs and import quotas generally reduce economic welfare
Explanation:
1) Difference in values which can also be called value conflicts are due to variations in belief systems. I.e. when the belief systems of two groups do not allign. While Antonio believes that government programmes should be reduced because they cause more harm than good, Caroline is of the opinion that despite the inefficiency of government programmes, they are still necessary for the less fortunate. This disagreement is as a result of value conflict.
2) Both economists agree on the inefficiency of government programmes. The focal point of Caroline's argument is that government's intervention in the economy is needed for the less fortunate. Based on this premise, two economies chosen at random will most likely agree to the proposition that tariffs and import quotas generally reduce economic welfare.
A company had the following transactions during September, the first month of its operations: Issued 50,000 shares of common stock in exchange for $600,000. Purchased land for $400,000, using a $150,000 cash down payment and signing a note payable for the balance. Received $5,000 from a customer for services to be performed in December. Made a $60,000 payment on the note payable from the purchase of the land. Total monthly sales: Cash sales $50,000 Credit Sales: $17,000 Purchased equipment on credit for $63,000. Collected $8,000 from customers on account. Paid $2,000 for September employee wages. Received a utility bill for $500 which will be paid next month. What is net income for the month of September
Answer:
Net income for the month of September is $451,000
Explanation:
Particulars Amount
Issue of common stock 600,000
Receipt from customer 5,000
Cash sales 50,000
Collection from customer 8,000 663,000
Less:
Cash down-payment made (150,000)
Payment made on notes payable (60,000)
Employee wage paid (2,000)
Cash balance as at end of Sep. 451,000
From the income statement, the corporation had a net income of $724 million for the year. Total dividends were $106 million. There were 400 million shares outstanding. How much is the dividends per share
Answer:
Dividend per year= $0.265 per share
Explanation:
Calculation of the dividend per year
Using this formula
Dividends per share=Total dividends/Total shares outstanding
Let plug in the formula
Dividend per share=$106/400
Dividend per share= $0.265 per share
Therefore the amount of dividend per share will be $0.265
Eviyan recently received a copy of his performance review report. During the review, his manager took notes regarding his performance and typed them up for the report, Eviyan was required to write a review of his own work following a questionnaire provided by the employer, and comments were solicited from other employees regarding his performance. Because he also has contact with the public, comments that were submitted to the company from the public concerning his performance were included in the report. After reading the report he received a phone call from his manager’s secretary informing him that he has been scheduled with an appointment with the manager the next day. If the manager is following good performance review policies, why has he scheduled the meeting with Eviyan? Group of answer choices The manager has scheduled him for a meeting for a performance feedback interview. The manager wants to meet with him so he can tell him about his evaluation and tell him in person that he is doing well or poorly and will then attempt to get Eviyan to agree to the performance evaluation. The manager has scheduled the meeting to solve Eviyan’s performance problems. The manager has scheduled the meeting to tell Eviyan what he has done well or poorly and give him the opportunity to defend himself.
Answer:
Eviyan's Performance Evaluation Report:
The manager has scheduled him for a meeting for a performance feedback interview.
Explanation:
Performance feedback interview is an opportunity for the employee to meet with his manager in order to iron out issues and reflect on the outcome of the evaluation. The employee will also be required at the interview to explain and defend the performance result face to face with the manager. Since there are always some differences in perception and evaluation, the interview provides that needed chance for a detailed discussion so that corrective measures will be defined and agreed upon. It is a good performance policy to schedule such an interview following a performance evaluation report.
Milar Corporation makes a product with the following standard costs:
Standard Quantity or Hours Standard Price or Rate
Direct materials 7.7 pounds $ 4 per pound
Direct labor 0.1 hours $ 20 per hour
Variable overhead 0.1 hours $ 4 per hour
In January the company produced 2,000 units using 16,060 pounds of the direct material and 210 direct labor-hours. During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910. The actual direct labor cost was $4,473 and the actual variable overhead cost was $756. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.
The materials price variance for January is:
a. $1,690 U
b. $1,540 F
c. $1,540 U
d. $1,690 F
Answer:
Direct material price variance= $1,690 favorable
Explanation:
Giving the following information:
Direct materials 7.7 pounds $ 4 per pound
During the month, the company purchased 16,900 pounds of the direct material at a cost of $65,910.
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
actual price= 65,910/16,900= $3.9
Direct material price variance= (4 - 3.9)*16,900
Direct material price variance= $1,690 favorable