Answer:
economies of scale
Explanation:
Economies of scale defines the advantage to company in terms of cost, that is with each increasing unit of output the cost for additional unit tends to decline.
All electric car segment do not currently operate or have competition as there is low market for such segments, but as the market is small for electric cars.
But as the company thinks to benefit in small scale because of economies of scale, the company might choose this electric car segment, encouraging customers, and with decreasing cost, company will be benefit.
Answer:
$100,000
Explanation:
Data provided in the question:
Estimated overhead = $700,000
Estimated machine hours = 200,000
Estimated Direct labor hours = 35,000
Direct labor hours for February = 5,000
Now,
The Predetermined Overhead Rate is calculated as
= ( Estimated Overhead Cost ) ÷ ( Estimated Direct Labor hour )
or
Predetermined Overhead Rate = $700,000 ÷ 35,000
or
Predetermined Overhead Rate = 20 per direct labor hour
Therefore,
The amount of overhead applied for February
= Predetermined Overhead Rate × Direct labor hours for February
= 5,000 × $20
= $100,000
Answer:
Equivalent Units of Production :
(1) Materials = 298000
(2) Conversion Costs = 284400
(3) Total = 582400
Explanation:
The Concept of Equivalent Units entails identifying number of completed units in terms of their completion % in the input component or process.
<em>Step 1 : Determine Units Completed and Transferred to Finished Goods</em>
<em>Units in Process = Units Output</em>
Units In Process 298000
Less Closing Work In Process 34000
Completed and Transferred 264000 (Balancing figure)
<em>Step 1 : Determine Equivalent Units for each input component</em>
Materials:
Completed and Transferred 100% = 264000×100%= 264000
Closing Work In process 100% = 34000×100%= 34000
Total = 298000
Conversion Costs:
Completed and Transferred 100% = 264000×100%=264000
Closing Work In process 60%=34000×60%=20400
Total =284400
