Answer:
$2 per hour
Explanation:
<u>Given</u>: Budgeted indirect cost $4000
Budgeted allocation base ; 2000 hours
Actual indirect costs incurred: $4200
Actual allocation base : 2050 hours
Standard rate for allocation of indirect cost = Budgeted indirect cost/Budgeted allocation base
= $4000/2000 hrs
= $2 per hour
Budgeted or standard indirect cost rate refers to the estimated indirect cost rate which is arrived at by dividing budgeted expenses by budgeted allocation base i.e budgeted hours here.
Answer:
a) $96 per unit
b) $224 per unit
c) 70%
Explanation:
We will have to compute variable cost and contribution margin
Sales $2,400,000
7,500 × 320
Less; Variable cost $720,000
Contribution margin $1,680,000
Less : Fixed cost $120,000
Operating income. $1,560,000
a) Variable cost per unit
= Total variable cost ÷ Total number of units
= $720,000 ÷ 7,500 units
= $96 per unit
b) Unit contribution margin
= Selling price per unit - Variable cost per unit
= $320 - $96
= $224
c) Contribution margin ratio
= (Selling price per unit - Variable cost per unit) ÷ Selling price per unit × 100
= ($320 - $96) ÷ $320 × 100
= $224 ÷ 320 × 100
= 70%
Answer:
This question is incomplete. However, I found the full question with choices from the web ;
Which of the following describes the results of an increase in supply on price and quantity in the market?
a.) Both price and quantity increase
b.) Both price and quantity decrease
c.) Price increases and quantity decreases
d.) Price decreases and quantity increases
e.) Insufficient information
Explanation:
If the supply of a product or service increases in the market, it means that there will be an increase in the quantity of that product/service. Due to the interplay of the law of demand and supply, competition among suppliers will increase, driving the price down. Therefore, there will be a fall the equilibrium price and increase in quantity , making choice D correct.
The answer is : The demand is elastic.
Elasticity =
[(80,000 - 180,000)/((80,000+180,000)/2)]/[($40 - $30)/(($40 + $30)/2)]|
[(-100,000/130,000)]/[(10/55)] = -.7692/.1818= -4.23
The answer is -4.23, however when considering own price elasticity of demand, we ignore the negative sign and look at the absolute value to determine whether it is elastic or inelastic.
Answer:
The answer is stated below:
Explanation:
A. Received or collected $10,000 in exchange of the common stock:
This transaction will have an impact on the Accounting Equation of the Accounts, which is :
Assets = Liabilities + Equity
As the cash is received, there will be an increase in the assets and under the cash account of the current assets. Though the cash is against the common stock, which increases the common stock account upon the side of the equity.
Therefore, it will be:
Increase in assets (Cash) : Increase in equity (Common Stock)
B. Bought the equipment on account worth $5,000.
This transaction will have an impact on the Accounting Equation as:
As the equipment is purchased will in turn lead to increase in the assets side, under the equipment account and it is purchased on account, which means on credit, that leads to increase in the liability under the Accounts Payable account.
Therefore, it will be:
Increase in assets (Equipment) : Increase in Liability (Accounts Payable)
