Question
Keith, the intern, was given some information from his supervisor. The supervisor wants him to figure out how well her department is doing. Keith suggests
Keith, the intern, was given some information from his supervisor. The supervisor wants him to figure out how well her department is doing. Keith suggests using Return On Investment as a gauge. The figures include: Sales of $250 000, Net Operating Income of $30 000, Average Operating Assets of $200 000, and the company's required return is 12%. What is Keith's Residual income?
- $ 5,200
- $ 200,000
- $ 6,000
- 0
What is Keith's Department's Margin?
a. 12% b. 8.3% c. 1.25% d. 15%
What is Keith's Department's Return on Investment a. 12% b. 60% c. 1.5% d. 15%
2. Hakard Pewlitt is producing a new model of laser printer, the Id10t. Being the production manager for the casing, you have been given the task of figuring out the materials variances for the printer's outer casing. The raw material for the casing is plastic pellets to be melted and formed into the various pieces for the casing. The standard material price is $4.75 per Kg of plastic pellets. The Hakard Pewlitt recently purchased and used 46 000 Kg for a price of $5.00 per Kg. To produce the current quarter's output of the Id10t should require 42 000 Kg.
A year after the Id10t has been released, you have been given data on how well your workforce is producing. After looking at the numbers, you decide that you should figure out the variances in relation to your production team. The standard labour cost is $12 after pay, taxes, and benefits. You were surprised to see that the actual rate turned out to be $12.50. The actual number of hours your employees worked was 6200, but you know that the standard for the level of production (650 casings) is 6400 hours.
The Labour Rate Variance is:
a. $3,100 Unfavourable b. $ 3,100 Favourable c. $ 3,200 Unfavourable d. None of the Above
3) Hakard Pewlitt is producing a new model of laser printer, the Id10t. Being the production manager for the casing, you have been given the task of figuring out the materials variances for the printer's outer casing. The raw material for the casing is plastic pellets to be melted and formed into the various pieces for the casing. The standard material price is $4.75 per Kg of plastic pellets. The Hakard Pewlitt recently purchased and used 46 000 Kg for a price of $5.00 per Kg. To produce the current quarter's output of the Id10t should require 42 000 Kg.
A year after the Id10t has been released, you have been given data on how well your workforce is producing. After looking at the numbers, you decide that you should figure out the variances in relation to your production team. The standard labour cost is $12 after pay, taxes, and benefits. You were surprised to see that the actual rate turned out to be $12.50. The actual number of hours your employees worked was 6200, but you know that the standard for the level of production (650 casings) is 6400 hours.
The Labour Efficiency Variance is:
a. $2,400 Unfavourable b. $ 2,400 Favourable c. $2,400 d. - $ 2,400
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