Answer:
$237
Explanation:
For computing the value of inventory first we have to compute the inventory units which is shown below:
= 5 units + 12 units + 8 units - 12 units
= 13 units
Now the value of inventory is
= 5 units × $17 + 8 units × $19
= $85 + $152
= $237
The 8 units is come from
= 13 units - 5 units
= 8 units
Hence, the value of the inventory is $237
Answer:
12.3 hours
Explanation:
The formula that is used to calculate the average time to produce a unit:
y = aQ^b
y = Average time to produce one unit.
a = Time necessary to produce the first unit.
Q = Cumulative production in units.
b = Learning rate which is calculated using: log (percentage learning rate)/log 2.
In this case, we have to start by calculating b:
b= Log0,87/log2= -0.139/0.693= -0.200
Then, we have that a= 17 and Q=5 and replace this on the formula for the average time to produce one unit:
y= 17* 5^-0.200
y= 17*0,724= 12,3
According to this, the average labor hours required per unit to produce five units is 12.3 hours.
Answer:
- 13,500,000 ounces of oatmeal
- 37,500 labor hours
Explanation:
1. Total amount of oats allowed for the actual output:
= Cartons of oatmeal produced * Oatmeal per carton
= 750,000 * 18
= 13,500,000 ounces of oatmeal
2. Labor hours allowed for actual output:
= Cartons of oatmeal produced * Labor hours required
= 750,000 * 0.05
= 37,500 labor hours
Answer:
the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
Explanation:
"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>
<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>
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Proration occurs because it is impossible to accurately estimate the future overhead costs and production activity; it is either the overhead is over applied or under applied. The variance will have to be adjusted for at the end of the financial year.
