Answer:
e. There is a deadweight loss at the given production level.
Explanation:
A deadweight loss, also known as excess burden or allocative inefficiency, is a loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.
Answer:
(B) debit Bad Debt Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
Explanation:
allowance fordoubtful accounts 1,100 debit
expected uncollectible 12,900
adjustment 14,000
We have to adjust to react the 12,900 as ending balancefor the allowance so we have to adjust as much as it takes to be 12,900 balance.
Solution:
Manufacturing overhead expense volatility will be determined by subtracting the overhead cost of output from the total overhead cost of production according to the adjustable budget.
(Manufacturing overhead cost as per flexible budget) =
(Actual units x Variable manufacturing overhead per unit +Fixed manufacturing overhead )
= (5,050 x $1.30)+ $41,500 = $48,065
Actual manufacturing overhead cost = $47,905
Therefore, Manufacturing overhead spending variance
= $48,065 - $47,905 = $160
The deviation is positive as the real expense is smaller than the adjustable cost of the program.
Answer:
The first gap is for Debit
The second gap is for credit
Explanation:
In accounting, Debit side(Dr) is always on the left side and credit side(Cr) is always on the right side.
The table is usually like 'T'
Debit side increases asset and expenses while credit decreases assets and expenses.
Also, Debit side decreases liability, equity and revenue while credit increases liability, equity and revenue
Answer:
Total Cost increase 5,253.4 unit
Explanation:
given data
weekly price a = $3.40 per gallon
ramp up weekly b = 35%
ramp up weekly upto x = $150( in hundred)
solution
we will use here the regression equation that is
Y = a + b x ...........................1
here Y is Total Cost and a is fixed cost and
b is rate of variability and x is level of activity
so here put value in equation 1 we get
Total Cost Y = 3.40 + 0.35 × ( 15,000)
Total Cost Y = 3.40 + 5,250
Total Cost increase 5,253.4 unit
