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ID: 2570964 • Letter: D

Question

d mylonestar Login x.le , Homepage. LSCs yBChapter ×veSign In or Sign Up! × 11 homework . ezto.mheducation.com/hm.tpx 3. Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below Sales Net operating income Average operating assets S18,600,000 s 6,100,000 $36,800,000 Required 1. Compute the margin for Alyeska Services Company (Round your answer to 2 decimal places.) 2 Compute the turnover for Alyeska Services Company (Round your answer to 2 decimal places.) urnover 3 Compute the return on investment (ROl) for Alyeska Services Company (Round your intermediate calculations and final answer to 2 decimal placos.) O Type here to search 0 0 e

Explanation / Answer

PVA = C ( {1 - [1 / (1 + r)]n} / r)

r=rate of interest=7% or 0.07

n= no of years=24

C= Yearly Payment=13,400

PVA= Present Value of Annuity=Today Price=?

PVA = $13,400 x ( {1 - [1 / (1 + 0.07)]24} / 0.07)

     = $13,400 x ( {1 - [1 / (1.07)]24} / 0.07)

    = $13,400 x ( {1 - [1 / 5.072366953]} / 0.07)

= $13,400 x ( {1 -0.19714662} / 0.07)

= $13,400 x (0.80285338 / 0.07)

= $13,400 x 11.469334

We will pay to contract = $ 153,689.08 today

Labor spending variance= ( Standard Hrs x Standard Rate) –(Actual Hrs X Actual hrs)

-$730=(2.50 x 160 x $4.50)- (Actual Hrs X Actual hrs)

-$730 =$1,800-(Actual Hrs X Actual hrs)

Actual Hrs X Actual hrs=$1,800+$730

Actual Hrs X Actual hrs=$2,530

Labor rate variance = Actual hrs x (Standard Rate- Actual Rate)

Labor rate variance =(Actual hrs x Standard Rate)-( Actual hrs x Actual Rate)

$55 U =(Actual hrs x $4.50)-$2,530

-$55 +$2,530 =Actual hrs X $4.50

Actual hrs X $4.50=$2,475

Actual hrs=$2,475/$4.50

Actual hrs =550 hrs

Actual rate per hr =( Actual hrs x Actual Rate)/ Actual hrs

Actual rate per hr =$2,530/ 550

Actual rate per hr =$4.60

Actual Labor hrs

550 hrs

Actual hourly rate

$4.60

Actual Labor hrs

550 hrs

Actual hourly rate

$4.60