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Need a & b Timeless Treasures produces two types of toys: trains and doils. The company uses stainless steel to manufacture the trains and plastic
Need a & b
Timeless Treasures produces two types of toys: trains and doils. The company uses stainless steel to manufacture the trains and plastic to manufacture the dolls. Information regarding the usage of steel and plastic for the past year folows: Product Names Sleel Plastic Direct materials information Standard pounds per unit 16 1 lb. Standard Price (SP) per pound $3.75 2 Actual Quantity () used per unit 3 lbs. 2.5 lbs. Actual Price (AP) paid for or material $3.25 $2.50 Actual Quantity Purchasad (AQP) and used 2,700 lbs. 1,000 lbs Price variance Quantity variance $2.813 ? Flexible budget variance $1,350 F Number of units produced 375 550 $1,870 F O A $1,350 favorable OB. $563 unfavorable OC. $563 favorable OD. $1,350 unfavorable Beck Department Stores is considering two possible expansion plans. One proposal involves opening 5 stores in Indiana at the cost of $1,940,000. Under the other proposal, the company would focus on Kentucky and open 6 stores at a cost of $2,900,000. The folowing information is available Indiana proposal $1,940,000 10 years Required investment Estimated If Estimaled residual value Estimated annual cash inflaws over the next 10 years Required rale of relum $80,000 $700,000 10% Kentucky proposal $2,900,000 10 years S60,000 $900,000 10% The accounting rate of return for the Indiana proposal is closest ton (Round any intermediary calculations to the nearest dallar, and round your final answer to the nearest hundredth of a percent. X.XXX.) O A. 21.24% OB. 30.08% OC. 26.49% OD. 31.96%Step by Step Solution
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