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Question - Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below:
Sales $7,500,000
Net operating income $600,000
Average operating assets $5,000,000
Required -
1. Compute the margin for Alyeska Services Company.
2. Compute the turnover for Alyeska Services Company.
3. Compute the return on investment (ROI) for Alyeska Services Company.
Compute the direct materials price and quantity variances for the year. Compute the direct labour rate and efficiency variances for the year.
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