Answer:
1.267 = Overhead Rate
Explanation:
<em>As general approach,</em> the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

<em>Using Direct Materials cost, the rate would be:</em>

<span>Gregory's rules of thumb, which he uses in decision making, are known as heuristics.
Heuristic refers to a solution to a problem - it is something you employ in order to achieve the best results possible. These methods you use may not be perfect, but they will help you do what you intended to do properly.
</span>
Answer: b.Correctly ignored a sunk cost
Explanation:
Sunk costs are those that are already incurred and should not have any influence on the decision to be made.
The cost of the ticket to the play has already been incurred and could not be sold, exchanged or transferred so was a sunk cost. By going to the concert with Simone, Ravi decided to ignore a sunk cost and he was correct to do so.
Answer:
the total period cost for the month under variable costing is $46,700
Explanation:
Product Cost Under Variable Costing = Direct Materials + Direct Labor + Variable Overheads
Period Cost Under Variable Costing = Fixed Manufacturing Overheads + All Non-Manufacturing Overheads (Variable and Fixed)
<u>Calculation for the total period cost - Varible Costing</u>
Variable selling and administrative expense ( $ 7× 1,070 Units) $ 7,490
Fixed manufacturing overhead $ 13,530
Fixed selling and administrative expense $ 25,680
Total period cost for the month $46,700
Answer:
A. $63.9
Explanation:
Your monthly payment is $1,278 => One-month payment is a fixed amount of $1,278
Your mortgage holder places a 5% penalty on all late payments so that the penalty cost for 1 month late would be 5% of one-month payment.
=> Penalty cost can be calculated as the following equation:
<em>Penalty cost = One-month payment x 5% </em>
<em>= 1,278 x 5 / 100 = $63.9</em>
So total penalty cost would be $63.9