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mash [69]
3 years ago
11

Refer to Exhibit 7.3, which shows the U-shaped cost curves for a producer. A is the marginal cost curve, B is the average variab

le cost curve, and C is the average total cost curve. The vertical distance between lines B and C at any level of output represents _____
Business
1 answer:
Alisiya [41]3 years ago
6 0

Answer:

U shaped Curves are all of the three : A marginal cost curve , B average variable cost curve , C average (total) cost curve

Vertical Distance between B) Average Variable Cost Curve , C) Average Total Cost Curve is Average Fixed Cost

Explanation:

Marginal Cost [MC] is addition to total cost, when an additional unit of output is produced. It is the rate of change in Total Cost. As total cost increases at decreasing rate first, then at increasing rate ; MC curve falls first & then rises & hence is U shape

Average Cost [AC] is average total cost per unit of output. It is also U shape as it falls first & then rises, due to total cost first increasing at decreasing rate & then increasing at increasing rate.

Total Cost [TC] changes only due to change in total variable cost [TVC] , as total fixed cost is constant. So, TVC changes in same pattern as TC, first at decreasing rate & then at increasing rate. This makes Average Variable cost [AVC] rise first, fall then i.e U shape

Total Cost is the total production expenditure on all (fixed & variable) factors of production.

TC = TFC (total fixed cost) + TVC

AC = AFC (average fixed cost) + AVC

AC - AVC = AFC. Difference between AC & AVC is AFC. This distance keeps on falling with increase in output but never becomes zero (the curves keep on coming closer but never intersect). Such because TFC is constant, AFC = TFC / Q keeps on falling with increase in output

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Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred
Naddik [55]

Answer:

Part A.

$16.75

Part B.

Variable costing income statement for 2017

Fi

Part C.

Part D.

Absorption costing income statement for 2017

Explanation:

<em>The question is incomplete, however see explanations below</em>

Cost per unit - Variable Costing

<em>Only consider the Variable Manufacturing Costs</em>

Cost per unit - Variable Costing = $16.75

Cost per unit - Absorption Costing  

<em>Consider Both Variable and Fixed Manufacturing Costs</em>

7 0
2 years ago
Michael corporation manufactures railroad​ cars, which is its only product. the standards for the railroad cars are as​ follows:
adoni [48]

Answer:

$56,000 Adverse

Explanation:

direct materials quantity variance = Aq × Sp - Sq ×Sp

                                                       = (6,500×$16) - ((1,500×2)×$16)

                                                       =  $104,000 - $48,000

                                                       = $56,000 Adverse

More materials were used during the month than was expected thus adverse.

3 0
3 years ago
Freemore Corp. projected sales for the last 6 months of next year: July $206,000 October $181,000 August 168,000 November 203,00
Rzqust [24]

Answer:

$188,170

Explanation:

Cash collection in a month includes the collection of current and prior years's of credit sales.  

Cash Collection for September is $188,170.

It includes 7% collection of July sales, It includes 35% collection of August sales and It includes 55% collection of September sales.

Schedule for Cash Collection is attached with this answer please find it.

Download pdf
7 0
3 years ago
Compute predetermined overhead rates and explain why estimated overhead costs (rather than actual overhead costs) are used in th
Crazy boy [7]

Why estimated overhead costs (rather than actual overhead costs) are used in the costing process is explained below.

A predetermined cost is an expenditure that a company estimates ahead of time.

This cost is calculated prior to the purpose of production and includes all variable costs that affect production in a manufacturing business.

Actual overhead costs are difficult to calculate for each job, especially in a production environment with a large number of jobs.

As a result, overhead costs are allocated according to some standardized methods, which may link overhead costs to direct labor, machining time, and material used in each job.

Manufacturing overhead in a manufacturing organization refers to indirect costs that are required for production but cannot be traced back to individual products.

Machine depreciation and factory rental are two examples of manufacturing overhead costs.

Hence, computation of predetermined overhead rates is given above.

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6 0
1 year ago
Shania offers to sell her lakefront property to Tonya for $150,000, and Tonya agrees to buy it. Tonya and Shania both sign the r
Lina20 [59]

Some of the likely things which a court would do if Tonya sues to enforce the contract are:

  • 1. X not enforce the contract, because people are free to choose to whom they sell their property.
  • 2. award monetary damages to Tonya.
  • 3. require Shania to go through with the sale.
  • 4. X grant specific performance by requiring Shania to find a comparable piece of land for Tonya at a comparable price.

<h3>What is a Contract?</h3>

This refers to the legally binding agreement which is entered by two or more parties based on terms and conditions.

With this in mind, we can see that because Shania wants to sell her lakefront to Tonya for $150,000 and they sign a contract but before they close the deal, Shania discovers that the property prices would go up and declines to sell.

In conclusion, if Tonya sues to enforce the contract, we can see that the contract would not be enforced, but Tonya would be paid monetary damages.

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8 0
2 years ago
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