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2 years ago

Opportunity costs occur when decisions are made. economists recommend that those decisions be based on what?

1 answer:

6 0

Those decisions should be based on COSTS AND BENEFITS.
In making decision on which course to follow, the decision made will be based on the costs of the products involved and the benefits that each one of them has to offer. The product with the lowest cost and the highest benefits should be chosen.

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Folio Company estimates total manufacturing overhead costs to be $80,000 for the year and estimates direct labor hours to be 4,0

gregori [183]

Answer:

Allocated Overhead= $76,000

Explanation:

Giving the following information:

Estimated overhead for the period= $80,000

Estimated direct labor hours= 4,000 for the same period

Actual direct labor hours for the period are 3,800.

First, we need to calculate the estimated overhead rate. Then, we can determine the amount of overhead allocated to work in process for the period.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 80,000/4,000= $20 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 20*3,800= $76,000

8 0

2 years ago

A. sound tracker company retires its delivery equipment, which cost $41,000. accumulated depreciation is also $41,000 on this de

guapka [62]

The amount of the salvage may be calculated using various equations. We are given that the sound tracker is retired about some time and this was initially bought at $41,000. However, we are given that the accumulated depreciation is also equal to $41,000.

Since the initial payment is similar to the accumulated depreciation hence, the salvage value is zero.

7 0

3 years ago

The United States and many other countries often impose trade sanctions on other countries. These sanctions A. tend to decrease

Pavel [41]

Answer:

The correct answer is option D.

Explanation:

Sanctions can be defined as penalty levied on other countries or citizens of other countries. There are a number of trade sanctions such as

Tariffs
Quotas
Non-tariff barriers
Embargoes

These trade sanctions affect both the sanctioning country as well as the sanctioned country. The imposition of trade sanctions on a country affects exports of the country. As the producers are able to supply less, there will be a reduction in producer surplus.

The imports for the consumers in the sanctioning country will decline. There will be less choice for them. This will cause a reduction in consumer surplus.

6 0

2 years ago

During 2004, Thor Lab supplied hospitals with a comprehensive diagnostic kit for $120. At a volume of 80,000 kits, Thor had fixe

Diano4ka-milaya [45]

Answer:

d. $240.00

Explanation:

Calculation to determine what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes?

2004 CM% = 12.5% ($15/$120)

2005 CM = $2,400,000 ($1,000,000 + $200,000)

2005 CM per unit = $2,400,000/80,000 units

2005 CM per unit= $30 CM per unit;

2005 selling price per unit = $30/.125

2005 selling price per unit= $240

Therefore what should the 2005 price be if Thor is to make the same $200,000 profit before income taxes is $240

6 0

2 years ago

Calculate the inventory-to-sale conversion period based on the following information: average inventories = $110,000; average re

Slav-nsk [51]

Answer:

232.08 days

Explanation:

Inventory to sales conversion period is the average length of time it will take a business to sell its stock items and then replace them. It give s an indication of patronage from customers and the shorter the better.

It is determined as follows:

Average inventory period

= (Average inventory/cost of goods sold) × 365 days

= (110,000/173,000) × 365 days

= 232.08 days

It takes on the average 232.08 days to sell and replace stock

4 0

2 years ago