Delta Air Lines Inc uses differentiation in combination with the cost leadership strategy to achieve growth objectives. 2.1.2.1 How Delta Air
Answer:
Contribution margin= $169
Explanation:
<u>First, we need to calculate the total unitary variable cost:</u>
total unitary variable cost= direct material + direct labor + variable overhead + variable selling expense
total unitary variable cost= 38 + 1 + 8 + 4
total unitary variable cost= $51
<u>Now, the contribution margin:</u>
Contribution margin= 220 - 51
Contribution margin= $169
Answer:
Estimated manufacturing overhead rate= $38.25 per direct labor hour
Explanation:
Giving the following information:
Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $306,000. The total estimated direct labor hours for the coming year are 8,000
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 306,000/8,000= $38.25 per direct labor hour
I think the answer should be B. The federal budget is reduced to tackle the deficit problem is not shift the AD curve. Hope it helped you, and have a great day.