Share Splits: You Own 3,000 Shares of Split Holdings Co

question 1

Multiple Choice

Share splits: You own 3,000 shares of Split Holdings Co. The shares are currently selling for $48. The company has just announced a 4-for-1 share split. How many shares will you own after the split, and approximately what will your holdings in Split Holdings Co be worth?

• A) 12,000 shares worth about $144,000
• B) 12,000 shares worth about $576,000
• C) 3,000 shares worth about $144,000
• D) 3,000 shares worth about $576,000

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Definitions:

Variable Overhead Efficiency Variance

is the difference between the actual variable overhead incurred and the standard cost allocated, based on the efficiency of utilizing resources.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead and what the variable overhead costs should have been for the actual good units produced.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, which can indicate efficiency or waste.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.