Computing standard price and material price variance


Q1) Rizzi Co. is growing quickly. Dividends are expected to increase at a 25 percent rate for next 3 years, where as growth rate falling off to constant 8% thereafter. If required return is 11 percent and company just paid a $3.50 dividend, present share price is $_____.

Q2) Last month 22,000 pounds of material were bought and 18,000 pounds were used. If actual cost per pound of material was $.60 less than standard price then material price variance was?

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Accounting Basics: Computing standard price and material price variance
Reference No:- TGS021519

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