Answer:
D. Marginal revenue for producing the 9 units is $15
Explanation:
TR(8) = $48
TR(9) = $63
MR(9) = TR(9) - TR(8) = $63 - $48 = $15
AR(8) = TR(8) / 8 = $48/8 = $6
AR(9) = TR(9)/9 = 63/9 = $9
Note: TR=Total revenue, AR= Average Revenue and MR=Marginal Revenue
So, the only correct option is option d
Answer:
Predetermined manufacturing overhead rate= $33.33 per direct labor hour
Explanation:
Giving the following information:
Next year, the company anticipates total overhead costs of $2.5 million.
Estimated direct labor hours= 75,000
<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,500,000/75,000
The answer to that is gonna be answer B
Answer:
Standard Overhead rate is $1.25 per Direct labor hours
Explanation:
Total variable cost (2000 unit * $2.50) = $5,000
Total fixed cost = <u>$5,000</u>
Estimated Overhead cost = <u>$10,000</u>
<u />
Estimated Direct labor hour = 2000 unit * 4 hours = 8,000 hours
Standard Overhead rate = Estimated overhead cost / Estimated Direct labor hour
Standard Overhead rate = $10,000 / 8,000 hours
Standard Overhead rate = $1.25 per Direct labor hours