Answer:
$2.70 mixing; $4.40 sampling
Explanation:
Activity based costing is a process by which the various activities in a production process are identified and cost allocated to each one. Each of these actity costs are added as product cost. It involves assigning indirect cost to direct cost.
For mixing department the cost rate is $0.9 per hour for 3 machine hours. So cost is (0.9* 3)= $2.7
For sampling the rate is $2.20 for 2 tests. So cost is (2.20* 2)= $4.4
Answer:
The firm will sell 600 units at $20
Explanation:
Giving the following information:
d = annual demand for a product in units
p = price per unit
d = 800 - 10p
p must be between $20 and $70.
Elastic demand
We have to calculate how many units the firm will sell at $20
d=800-10*p=800-10*20= 600 units