<u>Calculation of amount of direct materials charged to job no. 173:</u>
It is given that the work in process inventory on December 31 consisted of job no. 173 with a balance of $66,200.
Job no. 173 has been charged with manufacturing overhead costs of $20,000. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. It means the direct labor cost would be 20,000/50% = $40,000
Now we can calculate the amount of direct materials charged to job no. 173 as follows:
Direct material Cost = Total Cost allocated to Job – Direct Labor Cost – Manufacturing Overhead Cost
= 66200-40000-20000
= 6200
Hence, the amount of direct materials charged to job no. 173 is <u>$6,200</u>
Answer:
The diseconomies of scale because average total cost is rising as output rises.
Explanation:
The answer is: D. external shocks
External shocks refers to very unpredictable events that might influence a business in a certain direction (could be positive or negative), Example of external shocks would be things such as natural disaster or attacks from other country.
Since external shocks might never happen to a business, they could not be considered as a part of business cycle.
