Which of these guidelines helpful to maximizing the effectiveness of a brainstorming session is defined as, "Participants are en
1 answer:
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Answer:
$100
Explanation:
A binding price ceiling will artificially set a maximum price for a product, but that doesn't mean that the supplier will be willing to supply goods at that price. Binding price ceilings result in shortages, since the quantity demanded increases, while the quantity demanded decreases. This results in a loss of economic benefit known as deadweight loss.
As seen in the attached graph, the deadweight loss is equal to the area beneath the demand curve and above the supply curve, to the left of the equilibrium price.
Answer:
Division A will allocate overhead at $0.30 for every $1 it spends on direct labor.
Division B will allocate overhead at $16 per machine hour.
We arrive at the answers above as follows:
<u>Division A</u>
Estimated overhead ($) 78,750
Estimated direct labor costs ($) 262,500
Estimated direct machine hours 26,250
Basis for overhead allocation Direct labor costs
Estimated overhead rate is calculated with the following formula:
<u>Division B</u>
Estimated overhead ($) 240,000
Estimated direct labor costs ($) 120,000
Estimated direct machine hours 15,000
Basis for overhead allocation Machine hours
Estimated overhead rate is calculated with the following formula: