Answer:
Option (c) is correct.
Explanation:
Law of demand states that the price of the commodity and the quantity demanded of that commodity are negatively related to each other. This means that as the price of the commodity falls then as a result the quantity demanded for that commodity increases.
Therefore, the consumer will buy more sticks when the price of sticks falls from $2 to $1.
Answer:
Option (b) is correct.
Explanation:
Given that,
Budgeted production (September) = 50,000
Direct labor time for producing each sneaker = 2 hours
Direct labor wages average = $15 per hour
Direct labor budget for September:
= Budgeted production of sneaker in September × direct labor time require for each sneaker × Direct labor wages average per hour
= 50,000 × 2 hour × $15
= $1,500,000
Therefore, the direct labor cost budgeted for September is $1,500,000.
Answer:
The correct answer to the following question is $39,000 .
Explanation:
The given information -
Direct material - $25,000
Beginning work in progress - $2000
Ending work in progress - $5000
Direct labor - $10,000
Manufacturing overhead - $7000
So to calculate the cost of goods manufactured =
Direct material + Beginning work in progress + Direct labor + Manufacturing Overhead - Ending work in progress
= $25,000 + $2000 + $10,000 + $7000 - $5000
= $39,000
