To project a trend that decreases rather than increases, use a step value of less than ______

In the short run, the marginal cost of the first unit of output is $20, the marginal cost of producing the second unit of outp

Alinara [238K]

Answer:

Hence, the firm's total variable cost of producing three units of output is $48 unit.

Thus, the correct option is d. $48 unit.

Explanation:

The computation of total variable cost is shown below:

= marginal cost of the First unit of output + marginal cost of the second unit of output + marginal cost of the third unit of output

= $20 + $16 + $12

= $48

The variable cost include all type of cost which is change when the production level changes. In the given question, the output level changes with the unit which reflects the variable cost. So, the cost would be added in the computation part.

Hence, the firm's total variable cost of producing three units of output is $48 unit.

Thus, the correct option is d. $48 unit.

6 0

2 years ago

Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costin

Setler79 [48]

Answer:

Part 1. Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate = $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Underapplied Overheads are: $1,350,000 - $900,000 = $450,000

Part 3. Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

Explanation:

Part 1. Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate = Budgeted Overheads / Budgeted Activity

= $1,275,000/ 85,000

= $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Applied Overheads = Actual hours × Predetermined overhead rate

= 60,000 × $15

= $900,000

Actual Overheads = given = $1,350,000

Applied Overheads $900,000 < Actual Overheads $1,350,000, thus we have an underapplied situation

Therefore Underapplied Overheads are: $1,350,000 - $900,000 = $450,000

Part 3. Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Allocations:

Totals Weighted Average% Allocation

Work In Process $43,200 4% $18,000

Finished Goods $280,800 26% $73,008

Cost of Goods Sold $756,000 70% $315,000

Total $1,080,000 100% $450,000

Journals:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

5 0

3 years ago

The academic calendar for a university is August 15 through May 15. A professor commits to a contract that binds her to a teachi

tatiyna

Answer:

A. Will be the nine month period between August 15 and May 15; any time period longer than this will be long run for her.

6 0

2 years ago

Assume that you finance a new car when you graduate. It will cost $120,000 and you will finance it with a 84 month contract havi

shusha [124]

Answer: $1942.89

Explanation:

Since the car will cost $120,000 and it will be financed with a 84 month contract having a nominal rate of 9.20%, then the monthly payment will be:

= PMT(9.2%/12, 84, -120000)

This will be slotted into the Excel calculator and the answer gotten will be $1942.89

Therefore, the monthly payment will be $1942.89.

6 0

3 years ago

About 35 percent of online consumers are interested in customizing product features or in purchasing build-to-order products tha

yaroslaw [1]

Answer: (D) Form Utility

Explanation:

The form utility is one of the type of concept that helps in increasing the actual value of the products in the market and in the form utility following example are the type of finished product that the customers are willing to purchase are as follows:

Electronics products
Furniture type goods
Parts of vehicle

According to the given question, the given situation is helps in demonstrating that the electronic commerce plays an important contribution to the consumers value by the creating of the form utility.

Therefore, Option (D) is correct answer.

5 0

3 years ago

To project a trend that decreases rather than increases, use a step value of less than _______ for a linear trend.