37) PG5 Corporation\'s direct labor costs and related information for the month

Question

37) PG5 Corporation's direct labor costs and related information for the month of July were as follows: ctual total direct labor-hours Standard total direct labor-hours 1000 500 $16,500 What is PG5 Corporation's direct labor efficiency variance? A) $7950 favorable B) $16,500 unfavorable D) $16,500 favorable C) $7950 unfavorable 38) The Rainy Division of Seattle Corporation reported the following results from the past year. Shareholders require a return of 5%, Management calculated a weighted-average cost of capital (NACC) of 3%. Rainy's corporate tax rate is 25%. 180,000 $1,300,000 300,000 income Total asset urrent liabilities What is the division's Residual Income (RID)? B) $115,000 A) $180,000 C) $30,000 D) $150,000 39) Werthelm Corporation budgets payroll at $3300 per month plus a percentage of monthly sales. The June operating expenses budget includes total payroll of $10,900 with budgeted sales of $190,000. Sales for July are budgeted at $130,000 while purchases of inventory for July are budgeted at $940,000. Depreciation and insurance for July are estimated at $600 and purchasing inventory $1000 in furniture is expected in July $300, respectively. Office and administrative expenses related to are budgeted at 5% of purchases for the month. The purchase of S200 in equipment and The July payroll should be budgeted at A) $8800 B) $10,900 C) $5200 D) $13,016 40, AHC Corporation has an ROI of 21%, total assets oes,200,000, and current liabilities of S85000, what is AHC Corporation's operating income? A) $29,523.80 B) $1,302,000 C) $4,047619 D) $1,123,500

Explanation / Answer

38) B) 115000 ,

Residual income = Operating income - (Total operating assets* required rate of return)

= 180000 - (1300000 * 0.05)

= 180000 - 65000

= 115000

39) A) 8500 ,

July budgeted payroll = $3300 + [4% * $130000]

= 3300 + 5200

= 8500

Note:- percentage of monthly sales = [june total payroll budget - 3300] / $190000

   = [10900 - 3300 ] / 190000

=7600 / 190000

= 4%

40) D) $1123500 ,

ROI = operating income / total capital invested

0.21 =   operating income / (6200000 - 850000)

0.21 =   operating income / 5350000

1123500 =   operating income

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.