Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
Giving the following information:
Jameson estimates that 20,000 direct labor-hours will be worked during the year.
<u>We weren't provided with enough information to solve the problem. But, I will provide the formula and a small example.</u>
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Imagine the total estimated overhead costs is $1,500,000.
Predetermined manufacturing overhead rate= 1,500,000/20,000
Predetermined manufacturing overhead rate= $75 per direct labor hour
Answer:
The gross profit for the last month is $237,000
Explanation:
Calculation of contribution margin using variable costing = Sales - variable costs
Sales (150,000 × $8.20) = $1,230,000
- variable manufacturing costs = $280,5000 ( 150,000 units × $1.87)
- variable selling and administrative expenses = $ 712,500 (150,000 units ×$4.75)
= Contribution Margin = $ 237,000
Important. Fixed expenses and overheads are not considered in calculating contribution margin.
Therefore, gross profit for the last month is $237,000
Answer: $30,600
Explanation:
First calculate the earnings for the year.
Revenue is given. Expenses are also given and come out of revenue. Dividends also come out of revenue as well.
Retained Earnings for the year is therefore,
Retained Earnings for the year = Revenue - Expenses - Dividends
= 62,000 - 44,900 - 2,300
Retained Earnings for the year = $14,800
This figure should be added to the retained earnings of the previous period to find the total balance.
= 14,800 + 15,800
= $30,600
$30,600 is the closing Balance on Retained Earnings after closing entries.
Answer:
a) differences in scientific judgments.
b) Tariffs and import quotas generally reduce economic welfare.
Explanation:
Manuel is an economist who believes in classical approach of economy whereas Poornima is an economist who believes in Keynesian approach.
The Classical economics supports the idea of law and quantity theory of money. The Classical economist believes that economy is capable to achieve its natural level of real GDP by using available resources. Classical theory focuses on monetary policy to manage its money supply in an economy.
Keynesian economic theory states that government should boost demand to increase the growth. This theory believes in expansionary fiscal policy.
Manuel and Poornima disagree due to difference in their scientific judgment. They are arguing over the type of policy need to keep the economy running smoothly.
The Import and Tariffs quotas generally reduce the economic welfare. Most of the economist agrees to this proposition. Tariffs when increased then economic growth of a country slows down.
