I think the most appropriate answer would be C.
I hope it helped you!
Answer: Income will increase by $16 per unit
Explanation:
Your question isn't complete but the completed question was gotten online and would be used in answering the question accordingly.
The effect on income if Derby decides to make the motors will be calculated thus:
In-house:
Direct material = 38
Direct labor = 50
Overhead (Incremental) = 21
Total variable cost = 109
Outside:
Cost of supply = 125
Therefore, the income per unit will increase by (125 - 109) = 16.
Under capitalistic economy, allocation of various resources takes place with the help of market mechanism. Price of various goods and services including the price of factors of production are determined with help of the forces of demand and supply. Free price mechanism helps producers to decide what to produce
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Answer:
$30.39 per machine hour
Explanation:
Giannitti corporation has an estimated machine hours of 36,000
The estimated variable manufacturing overhead is $3.01 per machine hour
The estimated total fixed manufacturing overhead is $1,058,040
The first step is to calculate the the predetermined overhead rate
= 36,000 + 3.01 + 1,058,040
= $1,094,043.01
Therefore the predetermined overhead rate can be calculated as follows
= 1,094,043.01/36,000
= $30.39 per machine hour
Hence the predetermined overhead rate for the recently completed year is closest to $30.39 per machine hour
