Answer:
C) 6 pounds of pork and 8 pounds of tomatoes
Explanation:
Explanation:
Labor hours to make 1 lb. of: lbs. produced in 24 hours
Pork Tomatoes Pork Tomatoes
Farmer 6 3 4 8
Rancher 4 4 6 6
If both decide to specialize in producing only one good, the farmer will produce 8 pounds of tomatoes per day and the rancher will produce 6 pounds of pork per day.
This way when the rancher trades 4 pounds of pork in exchange for 6 pounds of tomatoes, he is gaining 2 pounds of pork which is equivalent to 8 labor hours.
When the rancher trades 6 pounds of tomatoes in exchange for 4 pounds of pork, he is gaining 2 pounds of tomatoes which is equivalent to 6 labor hours.
Answer:
Results are below.
Explanation:
<u>To calculate the activities rates, we need to use the following formula on each pool:</u>
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Pool 1= 20,000/10,000= $2 per direct labor dollar
Pool 2= 15,000/50= $300 per setup
Pool 3= 10,000/200= $50 per hour
<u>Now, we can allocate costs to each product:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product A:
Pool 1= 2*4,000= 8,000
Pool 2= 300*20= 6,000
Pool 3= 50 *50= 2,500
Total allocated costs= $16,500
Product B:
Pool 1= 2*6,000= 12,000
Pool 2= 300*30= 9,000
Pool 3= 50 *150= 7,500
Total allocated costs= $28,500
Answer:
C. the divine coincidence does not always hold
Explanation:
When a temporary negative supply shock hits the economy the divine coincidence does not always hold.
