Exercise 1 The manufacturer planned and found the following values in material consumption in his company: Item Unit Price Material consumption Kg CZK per kg Planned situation 300 15 Real situation 320 16 1. Calculate the actual cost 2. Calculate the planned costs 3. Calculate the total cost variance in monetary units. 4. Calculate how the price increase contributed to the total variance (price variance) 5. Calculate how consumption growth contributed to the total variance (quantity variance) Exercise 2 Items Units Calculated material consumption 90 CZK Production plan 5. 000 gloves Real production 4. 800 gloves Budgeted consumption of basic material 450 000 CZK Actual consumption of basic material 420 000 CZK · Assess the level of economy achieved in glove manufacturing. Exercise 3 The airline achieved the following results in the period under review: Items Units Sales revenue 300.000.000 CZK Air freight costs (material consumption, purchased services, depreciation, labor costs) 210.000.000 CZK Profit tax 10.000.000 CZK The net profit 24.400.000 CZK Invested capital 1.200.000.000 CZK Foreign resources (mainly bank loans) 2/3 of capital Interest rate of bank loans 6.95 % Required appreciation of equity capital by business owners 11 % Income tax rate 24 % · Calculate the amount of return on equity and interpret the result. · Calculate the amount of economic added value and interpret the result. Exercise 4 Items Units Purchase price of goods 100.000 CZK Selling price of goods 120.000 CZK Replacement cost 106.000 CZK Opportunity costs 10 % of return on costs • Express the cost of goods sold depending on their financial, value and economic concept. • Find out the trade margin (profit) from the sale of goods. Exercise 5 Mr. Smith decided to do business as a craftsman. Items Units Annual earnings 500.000 CZK Production and other costs 300.000 CZK Invested capital 1.000.000 CZK Interest rate on invested capital 6 % Lost monthly salary due to business 9.000 CZK • Calculate accounting and economic profit.