Answer:D. the marginal cost curve determines the quantity of output the firm is willing to supply at any price.
Explanation: The marginal cost is the change in total cost of producing a set of product as a result of adding one more unit to the production.
For example, if a firm has to buy one more production equipment in order to increase the number of product is the cost associated with that additional equipment is a MARGINAL COST.
THE MARGINAL COST CURVE DESCRIBES THE RELATIONSHIP BETWEEN THE MARGINAL COST OF A FIRM IN THE SHORT-TERM PRODUCTION OF A GOOD OR SERVICE AND THE QUANTITY OF FINISHED GOODS PRODUCED BY A FIRM.
Answer:
C. $400,000
Explanation:
The computation of the gross profit is shown below:
Gross profit = Net Sales - costs of goods sold
= $500,000 - $100,000
= $400,000
For determining the gross profit, we deduct the costs of goods sold from the net sales, so that the true value can come. It is shown in the income statement
All other information which is given is not relevant. Hence, ignored it
Answer:
See below
Explanation:
A. Predetermined overhead
First, we all calculate total overhead cost at the denominator level
Total overhead cost = total fixed overhead + total variable overhead
= $250,000 + (40,000 × $2)
= $250,000 + $80,000
= $330,000
Predetermined overhead rate = Total overhead cost at the denominator level / Budgeted standard direct labor hour
= $330,000 / 40,000
= $8.25
B. Overhead applied
= Standard direct labor hour allowed for actual output × Predetermined overhead rate
= 38,000 × $8.25
= $313,500
