Question
Hi, I need to know if my answer is correct for this problem --my answer--- a) Direct material variances Direct material price variance $10100 Unfavorable
Hi, I need to know if my answer is correct for this problem
--my answer--- a) Direct material variances Direct material price variance $10100 Unfavorable (AQ x AR) - (AQ x SR) = (101000 x $6.50) - (101000 x $6.40) = $656500 -$646400 = $10100 Direct material quantity variance $6400 Unfavorable (AQ x SR) - (SQ x SR) = (101000 x $6.40) - (100000 x $6.40) = $646400 - $640000 = $6400 Total direct materials cost variance $16500 Unfavorable (b) Direct labor variances Direct labor rate variance $700 Favorable (AH x AR) - (AH x SR) = (2000 x $15.40) - (2000 x $15.75) = $30800 - $31500 = $700 Direct labor efficiency variance $1260 Unfavorable (AH x SR) - (SH x SR) = (2000 x $15.75) - (2080 x $15.75) = $31500 - $32760 = $1260 Total direct labor cost variance $560 Unfavorable (c) Overhead variances Variable factory overhead controllable variance $200 Unfavorable (AH x AR) - (AH x SR) = ($8200) - (2000 x $4) = $8200 - $8000 = $200 Fixed factory overhead volume variance Budgeted - Absorbed overheads = (2080 x $6) - (2000 x $6) = $12480 - $12000 = $480 $480 Unfavorable Total factory overhead cost variance
PR 23-3B Divisional income statements and rate of return on investment analysis oBJ.4 E.F. Lynch Company is a diversified investment company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended June 30, 2016, are as follows: 2. Mutual Fund Division, ROL 22.4% Electronic nBanking Brokeran Division $4,560,000 3739,200 Mutual Fund Fee revenue sa, 140,000Division- 2.980,800 5,175,000 3,091,200 1,120,000 Invested assets The management of E.F. Lynch Company is evaluating each division as a basis for plan- ning a future expansion of operations. 1. Prepare condensed divisional income statements for the three divisions, assuming that there were no service department charges. investment turnover, and rate of return on investment for each division. which of the divisions would you recommend for expansion, based on parts (1) and 2. Using the DuPont formula for rate of return on investment, compute the profit margin, 3.If available funds permit the expansion of operations of only one division, (2)? ExplainStep by Step Solution
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