Question
31. The Pathways Company has an asset turnover of 3 times, using assets of $50,000. The company also has a return on investment (ROI) of
31. The Pathways Company has an asset turnover of 3 times, using assets of $50,000. The company also has a return on investment (ROI) of 20%. If the residual income was $4,250, what was the company's cost of capital?
11.5%.
20.0%.
3.0%.
8.5%.
32.
Denominator hours for May | 19,500 | ||
Actual hours worked during May | 17,600 | ||
Standard hours allowed for May | 13,800 | ||
Flexible budget fixed overhead cost | $ | 58,500 | |
Actual fixed overhead costs for May | $ | 62,400 | |
What is the fixed overhead spending (budget) variance for May?
$1,900 unfavorable.
$3,800 favorable.
$3,900 unfavorable.
$3,800 unfavorable.
33. The Fellowes Company has developed standards for labor. During June, 80 units were scheduled and 105 were produced. Data related to labor are:
Standard hours allowed | 4 | hours per unit | ||
Standard wages allowed | $ | 5.00 | per hour | |
Actual direct labor | 430 | hours (total cost $2,107) | ||
What is the labor rate variance for June?
$43 unfavorable.
$43 favorable.
$42 unfavorable.
$42 favorable.
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