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3 years ago

Refer to Exhibit 2-2. If PPF2 is the relevant production possibilities frontier, then point __________ illustrates inefficiency.

Business

1 answer:

Natali [406]3 years ago

5 0

Answer: F

Explanation:

Production possibility frontier checks the alternative combination of products that is possible based on available resources and useful technology.

NOTE: Exhibit 2-2 is curved.

Although, in reality most PPF2 are curved, which means that there is an increase in opportunity costs due to the commensurate increase in the number of goods produced. And this is so in most cases.

Therefore, with reference to Exhibit 2-2, if PPF2 is the relevant Production Possibilities Frontier, then point F illustrates inefficiency.

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A partial listing of costs incurred at Gilhooly Corporation during September appears below: Direct materials $ 162,000 Utilities

sergejj [24]

Answer:

Manufacturing overhead= $96,000

Explanation:

Giving the following information:

Utilities, factory $ 11,000

Indirect labor $ 30,000

Depreciation of production equipment $ 51,000

<u>The manufacturing overhead includes all indirect costs regarding production. </u>

<u></u>

Manufacturing overhead= 11,000 + 30,000 + 51,000

Manufacturing overhead= $96,000

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3 years ago

If rice is an inferior good: a. the income elasticity of demand for rice will be positive. b. an increase in income will cause t

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Answer: The answer is b -an increase in income will cause the demand curve of an inferior good to shift to the left.

Explanation: An inferior good is a good whose demand reduces as income increases. It's demand has an inverse or negative relationship with income. Therefore as the income of the individual increases, the demand for an inferior good reduces. On a graph, the reduction in demand is depicted by an inward shift of the demand curve or a shift of the demand curve to the left to show a reduction in demand. Income is one of the factors that leads to a shift in the demand curve. The income elasticity would be negative

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3 years ago

On january 6, 2014, the eldorado corporation purchased a tract of land for a factory site for $500,000. an existing building on

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3 years ago

At the beginning of the year, a company estimates the following manufacturing costs for the next period: direct labor, $468,000;

sveticcg [70]

Answer:

(1) rate = 25% of direct labor cost

(2) rate = 30% of direct materials

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

To determinate the rate We distribute the total overhead cost over a given cost driver.

factory overhead 117,000

direct materials 390,000

direct labor 468,000

(1) We are asked to use direct labor as a cost driver

117,000/468,000 = 0.25 = 25%

(2) We are asked to use direct materials as a cost driver

117,000/398,000 = 0.25 = 30%

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3 years ago

Read 2 more answers

The following transactions occurred during December 31, 2021, for the Falwell Company.

rewona [7]

Answer and Explanation:

The journal entries are shown below:

1. Prepaid insurance ($9,000*30/36) $7,500

To Insurance expense $7,500

(Being prepaid insurance is recorded)

2. Depreciation expense $10,000

To Accumulated depreciation-Equipment $10,000

(Being the depreciation expense is recorded)

3. Salaries expense $12,000

To Salaries payable $12,000

(Being the salaries expense is recorded)

4. Interest expense ($100,000 × 12% × 2 ÷ 12) $2,000

To Interest payable $2,000

(Being the interest expense is recorded)

5. Deferred rent revenue ($3,300 ÷ 3) $1,100

To Rent revenue $1,100

(Being the deferred rent revenue is recorded)

6. Rent revenue $2,200

To Deferred rent revenue $2,200

(Being the rent revenue is recorded)

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3 years ago