In: Accounting
10)Oxford Co. has a materials standard of 2.1 pounds per unit of output. Each pound has a standard price of $14 per pound. During February, Oxford Co. paid $57,300 for 4,810 pounds, which were used to produce 2,400 units. What is the direct materials quantity variance?
A) $3,220 favorable
B)$8,780 favorable
C)$9,540 unfavorable
D)$1,080 unfavorable
23) Avocado Company has an operating income of $123,900 on revenues of $1,066,000. Average invested assets are $590,000, and Avocado Company has an 13% cost of capital. What is the return on investment?
A)21%
B)8%
C)13%
D)12%
24) Avocado Company has an operating income of $154,980 on revenues of $1,014,000. Average invested assets are $574,000, and Avocado Company has an 9% cost of capital. What is the profit margin? (Round your answer to the nearest whole percent.)
A)18%
B)9%
C)15%
D)27%
31)Evergreen Corp. has two divisions, Fern and Bark. Fern produces a widget that Bark could use in the production of units that cost $223 in variable costs, plus the cost of the widget, to manufacture. Fern's variable costs are $92 per widget, and fixed manufacturing costs are applied at a rate of $53 per widget. Widgets sell on the open market for $137 each. Evergreen's policy is that internal transfers will be made at full cost. If Bark purchases the widgets from Fern, what will be the transfer price?
A)$92
B)$145
C)$137
D)$223
ANSWER TO THE QUESTION (10) | |||||||||||||
DIRECT MATERIAL VARIANCE | IS | A. $ 3220 FAVOURABLE | |||||||||||
DIRECT MATERIAL VARIANCE | |||||||||||||
= | (STANDARD POUNDS FOR ACTUAL OUTPUT - ACTUAL POUND USED ) * STANDARD RATE PER POUNDS | ||||||||||||
= | (2400*2.10 POUNDS - 4810 POUNDS ) X $ 14/POUND | ||||||||||||
= | (5040-4810)*14 | ||||||||||||
= | $3220 FAVOURABLE | ||||||||||||
ANSWER TO THE QUESTION (23) | |||||||||||||
RETURN ON INVESTMENT | IS | A. 21% | |||||||||||
RETURN ON INVESTMENT | |||||||||||||
= | OPERATING INCOME | ||||||||||||
AVERAGE INVESTED ASSETS | |||||||||||||
= | $123,900 | ||||||||||||
$590,000 | |||||||||||||
= | 21% | ||||||||||||
ANSWER TO THE QUESTION(24) | |||||||||||||
PROFIT MARGIN | IS | C. 15% | |||||||||||
PROFIT MARGIN | |||||||||||||
= | OPERATING INCOME | ||||||||||||
REVENUE | |||||||||||||
= | $154,980 | ||||||||||||