Answer: a.results in more accurate product costs
Explanation:
In a company that has multiple departments, using multiple overhead rates can help give a clearer view of product costs as costs are apportioned based on the activities in a department.
For example, in a Manufacturing company with a shipping department, you would find that it would be more accurate if for instance, machine hours are used in the Manufacturing department as opposed to labour hours being used in the Shipping department.
This method therefore gives a more accurate measure of the cost of producing different goods in a company which will go further to enable management to price products appropriately as well.
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Answer:
This is based on the micro-economics concept,
MRP=MRC
The principle states that in order to maximize profit a firm should employ the quantity of a resource at which its marginal revenue product (MRP) is equal to its marginal resource cost (MRC)
MRC is the wage rate in pure competition and in this case.
As each worker will bring in at least as much revenue as their wages cost. If the wage was $25, you would hire 4 workers. The MRC is 25 and MRP is 30, thus if a 5th worker would be hired, the amount paid would exceed the MRC, or what is coming in, thus you cannot increase to a fifth worker.
Answer: If the door handle is hot or warm that means there is a fire on the other side. But you shouldn’t open a door during a fire only open it if there is no other way to escape and open it slowly cause fire needs oxygen to grow bigger.
Explanation:
Answer:
Variable manufacturing overhead rate variance= $496 favorable
Explanation:
Giving the following information:
Standard:
Variable overhead 0.5 hours $ 8.00 per hour
The company produced 6,200 units using 2,480 direct labor-hours. The actual variable overhead rate was $7.80 per hour.
To calculate the variable overhead rate variance, we need to use the following formula:
Variable manufacturing overhead rate variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead rate variance= (8 - 7.8)*2,480
Variable manufacturing overhead rate variance= $496 favorable
Answer:
Company A will pay $16,000 and Company B will pay $8,000.
Explanation:
Pro rata method means allocating the amount to each company according to their percentage amount.
Here in this case,
Total Insurance amount = $100,000+50,000 = $150,000
Company A share if $24,000 loss occurs:
= 
$ 16,000
Company B share if $24,000 loss occurs:
= 
$ 8,000
Hence , Company A will pay $16,000 and Company B will pay $8,000.
