Answer:
$16.66
Explanation:
Data provided
Direct material = $55,870
Direct labor hour = 475
Wage rate = $11
Machine hour = $556
Number of units = 4,100
Overhead rate = $13
The preparation of job sheet is shown below:-
Direct Material $55,870
Add: Direct Labor $5,225
( 475 × $11)
Overhead $7,228
($556 × $13)
Total $68,323
Number of units 4,100
Cost per unit $16.66
($68,323 ÷ 4,100)
Answer:
65%
Explanation:
Calculation to determine its predetermined overhead rate for the next period should be:
Using this formula
OH rate = Estimated overhead next period/direct labor
Let plug in the formula
OH rate = $65,000/$100,000
OH rate = 65%
Therefore If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be: 65%
Answer:
Option (A) is correct.
Explanation:
Given that,
Units sold = 6,000 units
Sales = $565,000
Selling and administrative expenses = $67,000
Operating income:
= Sales - Cost of Goods Sold - Selling and administrative expenses
= $565,000 - ($305,000 + $14,000 + $43,000 - $42,000) - $67,000
= $565,000 - $320,000 - $67,000
= $178,000
Therefore, the operating income for the year is $178,000.
Answer:
The correct answer is option a.
Explanation:
The long run aggregate supply curve is inelastic and vertical in shape. The reason behind this is that in the long run the output level is not affected by the change in price level. It is rather affected by the quantity of inputs.
A leftward shift in the long run aggregate supply means that the output level is decreasing. This decrease in input in this case is either because of decrease in quantity of labor available,or because of increase in minimum wages the firms are hiring less labor.
So, option a is the correct answer.
