Determining unit costs, variance analysis, and interpretation
big dog company, a manufacturer of dog food, produces its product in 1,000-bag batches. the standard cost of each batch consists of 9,000 pounds of direct materials at $0.40 per pound, 48 direct labor hours at $8.50 per hour, and variable overhead cost (based on machine hours) at the rate of $10 per hour with 16 machine hours per batch. the following variable costs were incurred for the last 1,000-bag batch produced:

direct materials 9,300 pounds costing $3,578 were purchased and used
direct labor 45 hours costing $450
variable overhead $225
machine hours used 18 hours
(a) determine the actual and standard variable costs per bag of dog food produced, separated into direct materials, direct labor, and variable overhead.

round your answers to 3 decimal places.
(b) for the last 1,000-bag batch, determine the standard cost variances for direct materials, direct labor, and variable overhead.

round your answers two decimal places.
(c) which of the following is the most likely explanation for an unfavorable labor rate variance and a favorable labor efficiency variance?

-use of higher skilled employees and high efficiency equipment.
-use of poor quality materials resulting in overtime labor.
-use of low efficiency equipment by highly skilled employees.
-use of high efficiency equipment by undertrained employees.

wilson's has 10,000 shares of common stock outstanding at a market price of $35 a share. the firm also has a bond issue outstanding with a total face value of $250,000 which is selling for 102 percent of face value. the cost of equity is 11 percent while the preminustax cost of debt is 8 percent. the firm has a beta of 1.1 and a tax rate of 34 percent. what is wilson's weighted average cost of capital?

Instructions: use the following information to construct the 2000 balance sheet and income statement for carolina business machines. round all numbers to the nearest whole dollar. all numbers are in thousands of dollars. be sure to read the whole problem before you jump in and get started. at the end of 1999 the firm had $43,000 in gross fixed assets. in 2000 they purchased an additional $14,000 of fixed asset equipment. accumulated depreciation at the end of 1999 was $21,000. the depreciation expense in 2000 is $4,620. at the end of 2000 the firm had $3,000 in cash and $3,000 in accounts payable. in 2000 the firm extended a total of $9,000 in credit to a number of their customers in the form of accounts receivable. the firm generated $60,000 in sales revenue in 2000. their cost of goods sold was 60 percent of sales. they also incurred salaries and wages expense of $10,000. to date the firm has $1,000 in accrued salaries and wages. they borrowed $10,000 from their local bank to finance the $15,000 in inventory they now have on hand. the firm also has $7,120 invested in marketable securities. the firm currently has $20,000 in long-term debt outstanding and paid $2,000 in interest on their outstanding debt. over the firm's life, shareholders have put up $30,000. eighty percent of the shareholder's funds are in the form of retained earnings. the par value per share of carolina business machines stock is

You are head of the schwartz family endowment for the arts. you have decided to fund an arts school in the san francisco bay area in perpetuity. every 5 years, you will give the school $ 1 comma 000 comma 000. the first payment will occur 5 years from today. if the interest rate is 5.9 % per year, what is the present value of your gift?