Alumni manufacturing company has the following information pertaining to a normal monthly activity of 10,000 units: standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit. standard factory overhead rates per direct labor hour are: fixed $ 6.00 variable 10.00 $16.00 units actually produced in current month 9,000 units actual factory overhead costs incurred (includes $70,000 fixed) $156,000 actual direct labor hours 9,000 hours what is the fixed overhead volume variance for alumni?

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.