Answer:
Options a and b are correct.
Explanation:
Capital investments are relatively inexpensive.
Capital investments have multiyear life spans, so mistakes linger for a long time.
D. The company selling the product is using, "<span>an emotional appeal in advertising as a method of non-price competition"
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Hope this helps!</span>
Answer:
a. $ 900 underapplied
Explanation:
Based on the data provided we conclude that the factory overhead is applied on the basis of direct labour hours.
Determination of Overhead rate
Estimated overhead $ 115,000
Direct labour hours 23,000 hours
Overhead rate per direct labor hour is $ 115,000/ 23,000 = $ 5 per direct labor hour
Amount of applied overhead = Direct Labor hours * Overhead rate per hour
Applied Overhead = $ 5 * 35,000 $ 175,000
Actual Overhead <u>$ 175,900</u>
Underapplied Overhead $( 900)
Answer:
Time value of money
Explanation:
This principle states that money is more valuable at the moment or present than same amount of money in the future due its potential for increase in profit. A person or an investor that wants to make a return or gain will prefer to have the money now than have the same amount of money in the future. This is due to the potential of the money to increase in terms of earning capacity.
