Answer:
Increase in Substitute good price , Decrease in Complementary Good price, Fall in Income , Taste & preferences change in favour of good.
Explanation:
Demand is the ability & willingness of consumer to buy a product at a price , period of time.
There are four factors affecting Demand with following relationships with it : Price of Good (inversely related) , Price of related goods (substitutes-directly related) & (complements-inversely related), Income (directly related) , Taste & preferences (depends).
Any Change in 'Quantity Demanded' due to change in good's own price leads to movement on the demand curve (contraction or expansion). Any 'Change in Demand' due to factors other than price shifts the demand curve (rightwards or leftwards).
So : Increase in substitute good's price (eg- tea) price makes coffee relatively cheaper, Decrease in complementary good's price (eg - sugar/milk) makes coffee altogether cheaper, taste & preference change in favour of coffee consumption (eg- people learning advantages of caffaine consumption). All these mentioned Increase the Demand for coffee & shifts its curve rightwards.
Answer:
C) $6.40 per direct labor hour.
Explanation:
The overhead application rate is used to estimate the manufacturing overhead for a specific project or reporting period.
overhead application rate = direct labor cost per hour / (total direct labor costs / total overhead costs)
overhead application rate = $16 / ($475 / $190) = $16 / $2.50) = $6.40
Answer:
Net loss in 2018 reported in Puritan’s income statement = $360,000
Explanation:
Net Loss:
Net loss is the amount by which a company's total costs are more than its total sales during a particular period.
Formula:
Net loss = -taxable income + Income tax benefit
As taxable income for 2018 = $600,000 and Puritan's tax rate is 40% for all years
Therefore by putting the values in the above formula, we get
Net loss in 2018 in Puritan’s income statement = -$600,000 + ($600,000 * 40%)
Net loss in 2018 reported in Puritan’s income statement = -$600,000 + 1500000
Net loss in 2018 to be reported in Puritan’s income statement = $360,000
Answer:
1 buying a bicycle it's a good
2 getting a back message it's a service
3 getting the plumbing fixed in your house it's a service
4 use of a smartphone app it's a service
5 buying a new Ac unit for your house it's a service
6 buying a hamburger it's a good
7 getting your taxes completed by a tax firm it's both
Answer:
b. $1.87
Explanation:
Number of order taking costs = $20,592
Number of orders = 187,200
Cost of activity
= $20,592 ÷ 187,200
= $0.11
The Statement of overhead allocated is given below:-
Number of orders = 17
Cost per activity = $0.11
Cost
= 17 × $0.11
= $1.87
Therefore, the overhead is applied to the Tucker family account for order taking costs $1.87