Answer:
my mom is my strictest parent, rip. my dad is pretty chill tho
Answer:
It describes the problem of transaction costs and negotiation.
Explanation:
Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).
Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.
Answer:
Predetermined manufacturing overhead rate= $2 per direct labor dollar
Explanation:
Giving the following information:
Estimated overhead cost= $1,200,000
Estimated direct labor cost= $600,000.
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
<u></u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 1,200,000 / 600,000
Predetermined manufacturing overhead rate= $2 per direct labor dollar
Answer:
Direct Labor Hours Budget 8250
Direct Labor Costs Budget $ 57750
Factory Overhead Budget $ 614250
Explanation:
<em>We multiply the direct labor hours per unit to the number of units to get the total direct labor hours which are again multiplied with the direct labor cost per hour to get the total direct labor costs.</em>
Addison Co.
Direct Labor Budget
Quarter II
Production units 2750
<u>Direct Labor per unit 3 </u>
Direct Labor Hours 8250
<u>Direct Labor Cost / Hr $7 </u>
Direct Labor Costs $ 57750
We multiply the direct labor costs with variable overhead per hour to get the variable costs which are added to the fixed costs per quarter to get the total factory overhead budget.
Addison Co.
Factory Overhead Budget
Quarter II
Direct Labor Hours 8250
<u>Variable OH / Hr $ 9 </u>
Variable Overheads $ 74250
<u>+Fixed Overheads $ 540,000</u>
Factory Overhead Budget $ 614250