Answer:
A) 40
Explanation:
The chart is not very clear, but the information included is:
- it takes four hours to produce one shirt
- it takes two hours to produce one pair of socks
If the total number of labor hours is 80, then the maximum number of socks produced will = 80 hours / 2 hours per pair of socks = 40 pairs of socks
The total number of shirts produced would be 20.
The purchase of low-quality materials would most likely the result of a favorable materials price variance coupled with an unfavorable material usage variance. Material price variance is the difference between the cost and the budgeted and actual cost to obtain an object or materials, multiply to the total amount of the product purchased. They are what you called positive value of direct material price and negative value of direct material price. A positive value of direct material price variance is the one that is favorable and it means that the direct material was purchased for a lesser price than the standard price. A negative value of direct material price variance is the one that is unfavorable and it means that more than the expected price per unit is paid.
Answer:
False.
Explanation:
(1) Units produced = 24 units of output
At the 24th unit of output,
Marginal revenue = $5
Marginal cost = $4
MR ≠ MC
At the 25th unit of output,
Marginal revenue = $4.50
Marginal cost = $4.50
MR = MC
At the 26th unit of output,
Marginal revenue = $4
Marginal cost = $5
MR ≠ MC
A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.
It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.
This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.
Answer:
Bottom-up.
Explanation:
Bottom-up budgeting is a budgeting method that starts at the department level to the top level. Each department within the organization is required to compile a list of the things it needs, the projects it plans to carry out in the next financial period, and the cost estimates.