When I got into a crash ig
Answer:
c. Division 1 should continue to do business with Division 2 because Division 1's variable cost per part is only $18.
Explanation:
Since the variable cost per part is only $18 and Division 1 sells to Division 2 at $25, it is in the company's overall interest that business should continue between the two divisions.
The cost of getting the part from outside is $26. This will incur more cost to the company and create excess capacity for Division 1.
Fixed costs are not relevant in making a decision of this nature. The costs would be incurred irrespective of the decision made. They are therefore irrelevant. The relevant cost is the variable cost of $18 per unit. It should be the focus of the decision, including the possibility of excess capacity for Division 1.
Answer:
$31
Explanation:
Given the following information,
Total factory overhead costs = $1,745,300
Direct labor hours = 56,300
To calculate the predetermined manufacturing overhead rate, we will make use of the formula below;
Predetermined manufacturing overhead rate = Total estimated overhead costs for the period / Total amount of allocation base
= $1,745,300 / 56,300
= $31
Therefore, the predetermined overhead rate to apply to factory overhead is $31
Answer:
4) GDP will tend to increasingly understate the level of output through time.
Explanation:
The GDP includes all the final and legal goods and services produced within a country during a year, and underground economies usually involve illegal activities. Since the GDP does not include underground activities (e.g. unreported income, illegal drugs, prostitution, gambling, etc.), it will understate the true level of economic activity.
The GDP only includes activities that are subject to taxes, but some economists estimate that the size of the US underground economy is between $2.25 trillion to $2.46 trillion.
Answer:
$0
Explanation:
The amount of revenue realized from the sale=
(number of shares purchase × cost) - (number of shares sold ×cost)
(1000×10) - (500×20)
= $(10000 - 10000)
= $0
