Answer:
The correct answer is $79.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the estimated variable cost by using following formula:
Estimated variable cost = Direct material + Direct labor + Variable manufacturing overhead + Variable selling expenses
By putting the following value in the formula, we get
Estimated variable cost = $34 + $22 + $19 + $4
= $79
Hence, the estimated variable costs per unit is $79.
Answer: Please see explanation column for answer.
Explanation:
a) Journal entry to record the budget
Account Debit Credit
Estimated Revenues $2,500,000
Appropriation $2,000,000
Budget fund $500,000
Calculation
Budget fund= Estimated Revenues-Appropriation = $2,500,000- $2,000,000= $500,000
b) Journal entry to record the the expenditure when the interest comes due for payment.
Account Debit Credit
Expenditure Interest $2,000,000
Matured Interest payable $2,000,000
Answer:
c. GDP increases by $22.00.
Explanation:
The GDP is the sum of all final goods and services produced in an economy within a given period.
GDP = Consumption spending + Investment + Government Spending + Net Export
Only final goods and services are included in the calculation of GDP.
The wheat purchased by Wholesome Wheat Bakery is an intermediate good whuch is still used in the production of bread. Therefore, it isn't included in the calculation of GDP.
Bread is a final good and it's included in the GDP. Therefore, GDP increases by $22.
I hope my answer helps you.