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vampirchik [111]
1 year ago
6

Explain why a relative price is an opportunity cost. The money price of a pound of bananas is $0. 90 and the money price of a tu

be of toothpaste is $2. 25
Business
1 answer:
dimaraw [331]1 year ago
6 0

The opportunity cost is stated in relative pricing, that is, the price of one option in comparison to another.

When there are numerous vendors in a market but no one is significant enough to control the price of a product. Because both items must be produced, the relative price must match the opportunity cost. If the opportunity cost of one good is lower in the home country than so will be the relative price.

As bananas cost $0.90 per kg, so, if  a toothpaste is  for $2.25, we are forgoing 2.25 kgs banana (2.25/0.9). Thus, the opportunity cost is 2.5 kg bananas which is equal to the relative price of bananas.

Therefore, relative price is an opportunity cost.

To know more about relative price click here:

brainly.com/question/14187254

#SPJ4

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8 0
3 years ago
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.

<u>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.</u>

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
3 years ago
In two or three sentences describe how open market
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7 0
3 years ago
Gable Company uses three activity cost pools. Each pool has a cost driver. Information for Gable Company follows:
Amiraneli [1.4K]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the activity rate for each activity:</u>

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

Machining= 312,000/80,000= $3.9 per machine hour

Designing costs= 73,600/8,000= $9.2 per design hour

Setup costs= 71,600/500= $143.2 per batch

<u>Now, we can allocate overhead to each product:</u>

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

<u>Product A:</u>

Machining= 3.9*30,000= 117,000

Designing costs= 9.2*3,200= 29,440

Setup costs= 143.2*50= 7,160

Total overhead= $153,600

<u>Product B:</u>

Machining= 3.9*40,000= 156,000

Designing costs= 9.2*1,800= 16,560

Setup costs= 143.2*175= 25,060

Total overhead= $197,620

<u>Product C:</u>

Machining= 3.9*10,000= 39,000

Designing costs= 9.2*3,000= 27,600

Setup costs= 143.2*275= 39,380

Total overhead= $105,980

8 0
2 years ago
Fugazi City College sold season tickets for the 2013 football season for $200,000. A total of 8 games will be played during Sept
Igoryamba

Explanation:

The adjusting journal entry is presented below:

On  September 30

Unearned ticket revenue A/c Dr $75,000

        To Ticket revenue A/c $75,000

(Being the unearned ticked revenue is recorded)

The computation is shown below:

= Season tickets sale value × number of games ÷ given number of gains

= $200,000 × 3 games  ÷ 8 games

= $75,000

3 0
3 years ago
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