In Early 2012, Duncan Manufacturing Inc

question 45

Essay

In early 2012, Duncan Manufacturing Inc. had budgeted for the production and sale of 20,000 units at a sales price of $25 per unit. The following information is available regarding the standard cost for each unit:
Actual results for 2012 were determined to be as follows:
Required: Compute each of the following variances. Indicate whether the variance is favorable (F) or unfavorable (U).

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Definitions:

Earnings Per Common Share

A financial metric used to gauge the profitability of a company on a per-share basis, calculated as net income less dividends on preferred stock divided by the average number of common shares outstanding.

Stock Dividend

A payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Book Value Per Share

A financial metric that calculates the value of a company's equity divided by the number of outstanding shares.

Cash Dividends

Payments made by a corporation to its shareholder members. It is the share of profits distributed in cash.