Brenda was planning a small dinner party, and had gone to a new specialty food store with coupons she'd found in the food section of the paper. At the store she also found a "buy one, get one free" deal, and a gift offered with the purchase of a particular dessrt. She alterd the menu as a result of the decision based on the papers she have and ended up spending less than she'd planned.
Answer:
True
Explanation:
Fixed cost is the cost which cannot be avoided and is not dependent on level of activity thus, if there is high fixed cost than variable cost, in that case with decrease in level of output the loss will rise rapidly.
Where variable cost is more than fixed cost, then the cost will only increase or incur when there is production accordingly in case of low sale or low production the loss will also be less, as accordingly cost will be less.
Therefore, the statement in question is TRUE
Answer
Machining Department Assembly department
POAR = $5 per machine hour 200% of direct labor cost
Explanation:
Under absorption costing, overheads are charged to products using pre-determined overhead absorption rate. With this rate, overhead are included in the cost of every unit produced.
The rated is computed follows:
Predetermined overhead absorption rate (POAR)
= Estimated overhead for the period/Estimated activity level
Machining Department
POAR =25,000/ 5,000 machine hours=$5 per machine hour
Assembly department
PIAR = $30,000/15,000× 100 = 200% of labor cost
The answer is: B, A boss who is respectful and cooperative. Hope this helped.
