Answer:
3,220 units
Explanation:
The computation of the material quantity variance is shown below:
Direct material quantity variance = Standard Price × (Standard Quantity - Actual Quantity)
$750 = 2 gallons × $12.50 × (6,500 gallons ÷ 2 - actual quantity)
$750 = $25 × (6,500 gallons ÷ 2 - actual quantity)
$30 = 3,250 - actual quantity
So, the actual quantity would be
= 3,250 - $30
= 3,220 units
The Standard Price is computed below:
= 2 gallons × $12.50
The standard quantity is computed below:
= 6,500 gallons ÷ 2
= 3,250 units
Answer:
$14,333.33
Explanation:
Depreciation is the systematic allocation of the cost of an asset to P/l as a measure of use. It is added over the years as accumulated depreciation which is deducted from cost to get the net book value of the asset. Salvage value is the estimated realizable cost of an asset after its useful life.
Depreciation = (cost - salvage value)/useful life
Cost of an asset includes all cost incurred to make the asset available for use.
Depreciation = ($86000 + $7000 - $5000)/6
= $88000/6
= $14,333.33
Answer:
a
Life
Explanation:
Life insurance is a contract where the insurance company undertakes to pay the amount stated in the policy document upon the insured's death. The insured, in turn, pays periodic insurance premiums to keep the contract in force.
Life insurance renders financial protection to the family and the insured upon their death. For an entrepreneur, the insurance company will compensate their family for the loss of income occasioned by their death.
If all firms only earn a normal profit in the long run, firms will develop new products or lower-cost production methods because they can innovate and possibly earn an economic profit in the short run.
Explanation:
Competition involves constant efforts by companies and executives to do more than the loss (normal gains) of new goods or by improving ways to manufacture current products at lower prices. Therefore, if businesses can invent, they will achieve short-term economic advantage.
Economic benefit encourages entry, economic losses lead to exit and firms in a highly profitable market earn little economic income in a long-term equilibrium. In an industry where inflation does not change the costs of materials (a market with a constant cost), the long-term supply curve is a horizontal line.
