The substitution effect of a change in the price of bananas refers to the way in which a change in the price of a substitute affects the demand for bananas.
What is change in the price?
The difference between an asset's original and final values is known as the price change. It might be detrimental or beneficial. Investor choices are influenced by price movements. Investor confidence will be high for a financial instrument that exhibits a steady price increase over time.
Therefore,
The substitution effect of a change in the price of bananas refers to the way in which a change in the price of a substitute affects the demand for bananas.
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To assure the operational readiness of the tools, implements, equipment and
maximum return on investments.
Answer: $6,435
Explanation:
Manufacturing overhead is applied at a rate of 110% of direct labor costs.
Direct labor costs:
= Budgeted number of boxes to be produced* number of direct labor hours required * employee salary per hour
= 1,170 * 0.50 * 10
= $5,850
Manufacturing overhead is 110% of this:
= 5,850 * 110/100
= $6,435
Answer:
Profit of One unit in excess of break even point = $20
Explanation:
Break even point is where Sales =Total cost
Normal profit per unit $45--25$-$10 = $10
Profit of Units in Excess of Break Even Volume
Sales Price -Variable Cost
= $45- $25 = $20
Answer:
Question 1
a) yes
b) 5,900 direct labor x .67 rate = 3,953 dollars
Question 2
Work in process: <em>13,053</em>
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Explanation:
Taking job V as a template we can solve for the predeterminate overhead rate:
9,600 direct labor
generates 6,432 overhead:
6,432/9,600 = 0.67
eahc dollar is charged with $0.67 overhead
Total cost accumulated for Job W:
3,200 raw materials
5,900 direct labor
<u> 3,953 </u>overhead
<em>13,053 </em>total cost. As it is not compelte It will be considered work in process.
