Answer:
Answer for the question:
Accounting versus economic profit During a particular year, an advertising firm has the following costs: $575,000 in wages and salaries paid to employees; $70,000 in rental payments for office space; and $27,000 for office supplies, advertising, and utilities. In addition, Susan, the owner of the firm, works for the firm full time (and is not paid a salary, since she gets the firm's profit). If she did not work for the advertising firm, Susan could earn $120,000 per year working as an advertising agent for another firm. For each possible amount of total revenue, fill in the accounting profit and economic profit of the advertising firm. Total Revenue ($) Accounting Profit ($) Economic Profit ($) 750,000 800,000 850,000900,000
Is given in the attachment.
Explanation:
There are most likely more than five factors that influence technological progress, but they might include funding for scientific and technological projects, the availability of scientists and engineers to lead technological studies, growing economic development, a business or science culture that supports technological discovery, and also potentially government support for technological discoveries and advancements.
Answer:
$34 per hour
Explanation:
Direct labor hour
s:
= Labor cost ÷ Rate per hour
= $36,550 ÷ $17
= 2,150 Direct labor hours
Predetermined overhead rate
:
= Overhead applied on the basis of direct labor hour ÷ Number of hours
= $73,100 ÷ 2,150 hrs
= $34 per hour
Therefore, the predetermined overhead rate using the labor rate of $17 per hour is $34 per hour.
Answer
Retained earnings will be overstated by $38.40 million
Explanation:
The overstatement of retained earnings by this amount arises from the fact that if the depreciation of $64 million had been charged, the charge will have been tax deductible at 40% thus the amount overstated if (1-40%) x $64m =$38.4m.