Excelsior Shares Are Currently Selling for $25 Each

question 3

Multiple Choice

Excelsior shares are currently selling for $25 each.You bought 200 shares one year ago at $24 and received dividend payments of $1.50 per share.What was your total rate of return?

• A)4.17%
• B)6.25%
• C)10.42%
• D)104.67%
• E)110.42%

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Definitions:

Efficiency Variance

The difference between the actual amount of input (time, materials, etc.) used in production and the standard amount expected to be used.

Direct Labor-Hours

The sum of the hours spent by workers directly manufacturing a product.

Variable Overhead

Indirect production costs that fluctuate with the level of output, such as utilities or materials used in the manufacturing process.

Efficiency Variance

A measure used in cost accounting to evaluate the efficiency of resource usage, calculated as the difference between actual usage and the standard or expected usage.