Answer:
The answer is letter A. Earning normal profits because their returns on investment are equal to the opportunity costs of the time invested.
Explanation:
Because all resources are being used efficiently and there is no need to use them elsewhere.
Answer:
a)3,000,000 shares
b)2,200,000 shares
c)2,170,000 shares
d)$2,200,000
Explanation::
a) Based on the information given 3,000,000 shares were authorized
b) Based on the information given 2,200,000 shares were issued
c) Calculation for many shares are outstanding
Outstanding shares= (2,200,000 issued-30,000 in treasury)
Outstanding shares=2,170,000 shares
d) Calculation for the balance of the Common Stock account
Balance of the Common Stock account = ($1 × 2,200,000 shares
Balance of the Common Stock account=$2,200,000
Answer:
A) - $2585
$1750
-$835
B) Purchasing department , Purchasing supervisor , purchasing department
Explanation:
A) calculations for direct material price variance , quantity variance and total direct materials cost variance
<u><em>Direct material price variance</em></u> = 51,700 * ( 1.7 - 1.75 ) = -$2585.
<u><em>Direct material Quantity variance </em></u>= 1.75 ( 51700 - 50700 ) = $1750
<u><em>Total direct materials Cost variance</em></u> = 87890 - 88725 = - $835 a
B)
The direct materials price variance should normally be reported to the Purchasing department.
When lower amounts of direct materials are used because of production efficiencies, the variance would be reported to the production supervisor
When the favorable use of raw materials is caused by the purchase of higher-quality raw materials, the variance should be reported to the Purchasing department
Answer:
Budgeted production in January 2,910 units
Explanation:
Calculation for the budgeted production units for January
Using this formula
Budgeted production in January= Budgeted sales + Desired ending inventory - Beginning inventory available
Let plug in the formula
Budgeted production in January=2,800 + (3,900*10%) - 280
Budgeted production in January=$2,800+$390-280
Budgeted production in January= 2,910 units
Therefore the Budgeted production in units for January are: 2,910 units
Answer:
c
Explanation:
Marginal factor cost (MFC) is the change in total cost as a result of employing one more unit of a factor of production.
Marginal factor cost is determined by dividing the change in total cost by the change in factor of production.
Imagine that total cost is 100 when there are 2 units of labour employed. total cost increases to 200 when 3 units of labour are employed.
the marginal factor cost = 
= 100
Marginal cost is the additional cost generated by producing an additional unit of output.
Marginal factor revenue is the additional revenue generated by employing an additional factor unit.
Average factor cost is total cost from the production of a product divided by the total number of factor units used.
