Reference no: EM132915847

Question 1 - Adam purchases 1,200 shares of Beta Inc. at $22 per share and sells them after 1 year, during which time the stock also pays a dividend. The following information is also available:

Sale price = $25

Leverage ratio = 2.5

Call money rate = 5%

Dividend = $0.20 per share

Commission = $0.03 per share

Maintenance margin = 20%

Assume that the interest on the loan and the dividend are both paid at the end of the year.

Adam's gain attributable to leverage is closest to:

Question 2 - Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,100 units are planned to be sold in March. The variable selling and administrative expense is $4.60 per unit. The budgeted fixed selling and administrative expense is $35,710 per month, which includes depreciation of $3,600 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:

Question 3 - Hunkins Corporation has provided the following data concerning last month's operations.

Purchases of raw materials $33,000

Indirect materials included in manufacturing overhead $4,000

Direct labor cost $58,000

Manufacturing overhead applied to Work in Process $91,000

Beginning Ending

Raw materials inventory $14,000 $20,000

Work in process inventory $57,000 $70,000

How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured?