Answer:
$369,879
Explanation:
The computation of the total overhead to be applied is shown below:
<u> Product X7</u>
<u>Activity Cost Estimated Expected Activity Expected Overhead </u>
<u>Pool Overhead Total Rate Activity applied </u>
<u> Cost Activity </u>
Labor
-related $152,100 7,800 $19.50 4800 $93,600
Production
orders $63,035 700 $90.05 300 $27,015
Order size $505,452 7300 $69.24 3600 $249,264
Total $720,587 $369,879
Answer:
$106,000
Explanation:
The computation of explicit costs is shown below:-
Implicit costs = Paid amount in a year + Rent amount
= $30,000 + $24,000
= $54,000
Explicit costs = Expenses amount for food + Expenses amount for gas and electricity
= $50,000 + $2,000
= $52,000
Total amount = Implicit costs + Explicit costs
= $54,000 + $52,000
= $106,000
Therefore we have applied the above formula.
Answer:
Seth's total profits is $1,535.359
Explanation:
According to the given data we have the following:
MC = 0 and we will ignore fixed costs
Therefore TC = 0
Demand function in Santa barbara is
p = 74 - q
MR = 74 - 2q
Since Seth sets different uniform prices in two markets to maximizes his profit therefore
,
MR = MC
74 - 2q = 0
2q = 74
q=37
p = 74 - 37 = 37
Profit = pq - TC
= 37*37 - 0
= $1,369
Inverse demand finction Goleta is
p = 39 - 4q
MR = 39 - 8q
MR = MC
39 - 8q = 0
8q = 39
q = 4.875
p = 39 - 4.875 = 34.125
Profit = pq - TC
= 34.125*4.875 - 0
= $166.359
Therefore, Seth's total profits = $1,369 + $166.359
Seth's total profits= $1,535.359
Seth's total profits is $1,535.359
Answer:
d. A manufacturing company will normally have raw materials, work in process, and merchandise inventory as inventory account classifications.
Explanation:
- Normally a manufacturing company has various inventors such as raw material, work in progress and finished goods and the inventories are goods that held up in stocks for the ultimate goal of resale, another type of inventories include transit inventory, buffer inventory and cyclic inventory.
- Merchandise inventory is a finished good that is taken for sale by retail or wholesale. The finished goods for the sale by manufactures are generally called as finished goods inventory.
Answer:
Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Absolute advantage is defined as the ability of a firm to produce higher amounts of a product as a result of use of the same resources with other competitors. It is usually bad a result of more efficient production process.
Comparative advantage is the ability of a firm to produce goods at a lower opportunity cost. Therefore they are able to sell at lower price compared to competitors.
Georgeland can produce 18 units of clothe per year while Alland can produce 16 units per year, so Georgeland has absolute advantage.
In producing clothes Georgeland has opportunity cost of 36 units of food which is higher than that of Alland which is 32 units of food. So Georgeland does not have comparative advantage in producing clothes.
