Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $3
1 answer:
You might be interested in
Answer:
overhead rate: 15
applied overhead 30,000
underapplicatio for 1,000
Explanation:
The manufacturing overhead rate is determinate by dividingthe total expected cost by a cost driver. In this case, the machine hours.
estimated cost 150,000
expected machine hours 10,000
predeterminate overhead rate = 150,000/10,000 = 15
Next, to allocate cost, we multiply the actual value fo the cost driver by the rate
actual machine hours x MO rate
2,000 x 15 = 30,000 applied overhead.
Last, we compare with the actual overhead to determinate over or underapplied overhead:
applied - actual
30,000 - 31,000 = -1,000
Thew overhead was underapplied, as the cost were for 31,000 but we only recognize 30,000
Answer: Total earning is $96 for both Susan and Tom
Explanation:
Susan can pick 4 pounds of coffee or 2 pounds of nuts.
Tom can pick 2 pounds of coffee or 4 pounds of nuts.
Price of Coffee = $2 per pound
Price of Nuts = $2 per pound
Opportunity cost of producing coffee for Susan = 2/4 = 0.5
Opportunity cost of producing coffee for Tom = 4/2 = 2
Opportunity cost of coffee is low for Susan, so she has a comparative advantage in it.
So, Susan produces 6*4 = 24 pounds of coffee, total revenue from sale of coffee is $24*2 = $48
Opportunity cost of producing Nuts for Susan = 4/2 = 2
Opportunity cost of producing Nuts for Tom = 2/4 = 0.5
Opportunity cost of coffee is low for Tom, so he has a comparative advantage in it.
So, Tom produces 6*4 = 24 pounds of nuts, total revenue from sale of nuts is $24*2 = $48
So,