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kakasveta [241]
3 years ago
9

Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for a Time Period that Differs from the Data Period

Business
1 answer:
Alex17521 [72]3 years ago
8 0

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Data for the past 8 months were collected:

Month Labor Cost Employee Hours

January $7,000  360

February $8,140 550

March $9,899 630

April $9,787 610

May $8,490 480

June $7,450 350

July $9,490 570

August $7,531 310

Total Labor Cost = $5,237 + ($7.40 x Employee Hours)

1) To calculate the variable cost we need to use the following formula:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (9,899 - 7,000) / (630 - 310)= $9.06 per unit

2) Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 9,899 - (9.06*630)= $4,191

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 7,000 - (9.06*310)= $4,191

3) direct labor hours= 4,000

Total Labor Cost = $5,237 + ($7.40 x Employee Hours)

Total Labor Cost= 5,237 + (7.4*4,000)= $34,837

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5 0
1 year ago
Which of the following circumstances usually comes before a period of economic contraction?
erik [133]
C
A low GDP for two or more consecutive quarters is usually followed by economic contraction. 
8 0
3 years ago
Ginny, a licensee, uses a preprinted contract in Tim's purchase of a new loft apartment. There is a discrepancy in the contract
777dan777 [17]

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The handwritten clause generally supersedes the preprinted clause.

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2 years ago
Suppose the spot exchange rate for the Canadian dollar is Can$1.12 and the six-month forward rate is Can$1.14.
andreyandreev [35.5K]

Answer:

Explanation:

Given that:

a)

1$ = Can $1.12

It takes a value of 1 U.S dollar to have 1.12 Canadian dollars.  This signifies that the U.S dollar is worth more than Canadian dollars.

b)

Assuming that the absolute Purchasing Power Parity PPP holds,

Since 1$ = Can $1.12, the cost  in the United States of an Elkhead beer, if the price in Canada is Can$2.85 can be determined to be:

= \dfrac{2.85}{1.12}

= $2.545

c)

Yes, the U.S. dollar is selling at a premium relative to the Canadian dollar.

This is because we are being told that the spot exchange rate for the Canadian dollar is Can $1.12 & in six (6) months time the forward rate will be Can $1.14.

d)

The U.S dollar is expected to appreciate in value because it is trading at a premium in the forward market.

e)

Canada has higher interest rates. This determined by using the formula:

= \dfrac{(\dfrac{Fwd}{Spot }-1)}{n}

where; n= numbers of years = 6 month/12 month = 0.5 year

Then;

=\dfrac{(\dfrac{1.14}{1.12 }-1)}{0.5}

= \dfrac{(1.0178-1)}{0.5}

= \dfrac{(0.0178)}{0.5}

= 0.0356

= 3.56%

6 0
2 years ago
A production possibilities frontier can shift outward if a. resources are shifted from the production of one good to the product
Eduardwww [97]

Answer:

d. there is a technological improvement.

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b) abandon inefficient production will bring the production to the PPF from a place below it.

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7 0
3 years ago
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