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3 years ago

What does the production possibility frontier show?

Business

2 answers:

Brrunno [24]3 years ago

8 0

Answer:

Show the maximum possible outcomes.

Explanation:

The production possibility curve depicts the maximum possible output that is a combination of two or more goods and services of the economy and are achieved when all resources are fully and efficiently used. Such as the availability of the technology and resources. The PPF works on the concept of scarcity, choice, and trade-offs.

inna [77]3 years ago

3 0

It shows the max possible output combinations of two goods or services an economy can get when all the resources are efficiently and fully used.

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At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year,

andre [41]

Answer:

Part 1

$9.60

Part 2

$11,129

Part 3

Journal 1

Debit : Overheads $172,500

Credit : Equipment lease $ 6,800

Credit : Depreciation on building 19,340

Credit : Indirect labor 90,400

Credit : Utilities 14,560

Credit : Other overhead 41,400

Being overheads incurred

Journal 2

Debit : Work In Process $173,760

Credit : Overheads $173,760

Being overheads applied

Part 4

under-applied overheads is $1,260

Part 5

$636,860

Explanation:

Overhead rate = Budgeted Overheads ÷ Budgeted Activity

= $129,600 ÷ 13,500

= $9.60

Total cost (Job K456) = $2,750 + $5,355 + $3,024 = $11,129

Actual Overheads = $ 6,800 + $19,340 + $90,400 + $14,560 + $41,400 = $172,500

Applied overheads = 18,100 x $9.60 = $173,760

Since, Actual Overheads < Applied overheads, overheads have been under-applied. Amount of under-applied overheads is $1,260 ($173,760 - $172,500)

Under-applied overheads are added to cost of goods sold. Therefore, adjusted cost of goods sold will be $636,860 ($635,600 + $1,260)

7 0

2 years ago

Approximately 85% of the customers at hanson's furniture store purchase furniture using store credit. the store's average collec

aev [14]

With a Net 30 payment policy, but an average collection period of 75 days with customers, Hanson's furniture store, should either reduce their store credit option, and encourage approximately 45% of their store credit customers to pay upon receipt, or shorten their operating cycle.

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3 years ago

Initial margin requirements are determined by:________

Goryan [66]

Answer:

b. the Federal Reserve System.

Explanation:

Initial margin refers to the deposit made by an investor with a broker, in order to open a margin account. The purpose of initial margin is security and collateral to ensure enough availability of cash in the trading account of the investor.

For instance an investor wants to purchase 4000 shares priced at 15$. In this case, he is supposed to deposit 50% of $60,000 i.e $30,000. The remaining $30,000 is contributed by the brokerage firm, regarded as borrowings on which the investor pays interest.

The initial margin limit is fixed by the Federal Reserve System.

3 0

3 years ago

Riley Company paid $60,000 cash to purchase land from Smally Company. Smally originally paid $60,000 for the land. A) Was this e

Veseljchak [2.6K]

Answer:

A. Asset exchange transaction

B. Asset exchange transaction

C. Investing activity

D. Investing activity.

Explanation:

In the question, the Riley company paid cash to Smally company, and the Smally company paid the amount for the land.

So,

A. For Riley company, it is an asset exchange transaction as the asset exchanges between Riley and Smally company.

B. For Smally company it is an asset exchange transaction as the asset are the exchange between Riley and Smally company.

C. Investing activity. As the Riley company deals in the purchase and the sale of the fixed assets.

D. Investing activity. As the company deals in the purchase and the sale of the fixed assets.

4 0

3 years ago

Kubin Company’s relevant range of production is 11,000 to 14,000 units. When it produces and sells 12,500 units, its average cos

erastovalidia [21]

Answer:

a. $142,500

b. $86,250

Explanation:

a. The computation of the total direct manufacturing cost is shown below:

= (Direct material per unit + direct labor per unit) × number of units manufactured

= ($7.20 + $4.20) × 12,500 units

= $142,500

b. The computation of the total indirect manufacturing cost is shown below:

= (Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit) × number of units manufactured

= ($1.70 + $5.20) × 12,500 units

= $86,250

8 0

3 years ago