Answer:
The correct answer is option A.
Explanation:
An economically efficient level of output is the level of output where the marginal benefit earned from the consumption is equal to marginal cost of production.
At this point, the consumer surplus and producer surplus will be maximum. The economic surplus which is a sum of both economic surplus and producer surplus will also be maximum.
Answer:
increase by 400 billion dollars
Explanation:
marginal propensity to consume = mpc
tax multiplier = -mpc/1-mpc
from our question we were given mpc to be 0.8
-0.8/1-0.8
= -0.8/0.2
= -4
change in output = -4(-100)
= 400 billion dollars
for a $100 tax decrease, output will increase by $100 billion x 4
= $400 billion
Answer:
Option D is correct
Activity rate for the Labor-Related activity cost pool= $28.08 per DLH
Explanation:
<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. </em>
Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.
Activity rate per driver is calculated as:
Activity overhead for the period / Total cost drivers for the period
Activity rate for the Labor-Related activity cost pool
= Labour related overheads/Total labour hours
= $ 337,018 /12,000 labour hours
= $28.08 per Direct labour hour
Activity rate for the Labor-Related activity cost pool= $28.08 per DLH
Answer:
The correct answer would be, $70500
Explanation:
Raw Material Turnover means what amount of raw materials is used within a specific period of time. So the raw material turnover would be calculated by adding the beginning inventory with the amount of material used within the period, and then the remaining material will be deducted. So the whole calculations are shown as follows:
Beginning Raw Material Inventory: $5000
Raw Material Used: $71500
Ending Raw Material Inventory: $6000
Raw Material Inventory Turnover:
Beginning Inventory + Raw Material Used - Ending Raw Material
= 5000+71500-6000= $70500