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Fiesta28 [93]
2 years ago
7

Below is a set of projects aimed at cleaning up a city's recreational areas.

Business
1 answer:
Andru [333]2 years ago
3 0

Answer:

North Park $13,000 $16,000 N

Upper River Beach 6,000 8,000  Y

South Shore 29,000 30,000  Y

Green Creek 900 1,300 N

Explanation:

The cleanup will happen in the area where the marginal benefit is more than the marginal cost. the North park will not be cleaned up. River beach will be cleaned Up. South shore will be cleaned up. Green creak will not be cleaned up.

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Smith has applied overhead of $73,000 and actual overhead of $87,600 for the month of November. It applies overhead based on dir
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Answer:

Estimated direct labor hours= 180,000

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Giving the following information:

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We have to reverse engineer the allocation method for manufacturing overhead.

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2 years ago
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uysha [10]

Answer:

By producing the starters the company will save $20,000 per year.

Explanation:

                       production costs

direct materials                                      $3.10 per unit

direct labor                                             $2.70 per unit

supervision                                            $60,000

depreciation                                          $40,000

variable manufacturing overhead        $0.60 per unit

rent                                                         $12,000

total production cost                             $9.20 per unit

The engineer is wrong because he is considering fixed costs like depreciation and rent that should not be included because they are independent on whether this project is approved or not. Once you take away depreciation and rent, the cost per unit will fall by $1.30 [= ($40,000 + $12,000) / 40,000 units].

Since the production cost = $9.20 - $1.30 = $7.90, which is lower than $8.40 which is the purchase cost, the company should start producing the starters at least until its sales bonce back.

By producing the starters the company will save ($8.40 - $7.90) x 40,000 units = $20,000 per year

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2 years ago
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