Answer:
d) $2,000,000 $990,000
Explanation:
The computation is shown below:
Unit variable cost pool is
= Budgeted cost ÷ Budgeted machine hours
= $1,600,000 ÷ 360,000
=$ 4.444 per machine hour
And,
Batch-level cost pool = Budgeted cost ÷ Budgeted number of setups
= $900,000 ÷ 3000
= $ 300 per setup
Now
Unit variable cost pool is
= Actual machine hours × Activity rate
= 450000 × 4.44
= $2,000,000
And, Batch-level cost pool is
= Actual number of setups × Activity rate
= 3300 × 300
=$990,000
Answer:
b) The cost of the building will include the cost of replacing the roof.
Explanation:
As for the information provided,
We know that the capital expenditure is capitalized and that the revenue expenditure is provided in income statement.
The capital expenditure is added in the cost of fixed assets and then depreciated as part of it.
The entire replacement of roof will be a huge part of consideration of building, and is capital in nature. Thus, it shall be part of cost of building.
Remaining all expenses are not capital in nature.
If Country B has an absolute advantage over Country A in producing bicycles, it must also have a comparative advantage over Country A in producing bicycles - False
<h3><u>
Explanation:</u></h3>
When any organisation has the ability to produce a product identical to its competitor company in such a way it utilizes only lesser amount of the given resources producing more product then it is said to have absolute advantage. Comparative advantage refers to the ability of a firm in producing a particular goods or services at a lesser marginal cost when compared with the opportunity cost.
Absolute advantages helps a firm to reduce its production cost than its competitors. Comparative advantage helps a firm in reducing the opportunity cost. It is not necessary to have a company to have both absolute and comparative advantage at the same time. It can either have absolute or comparative advantage.
Answer:
Total Perdiod Cost 44,650
Explanation:
A period cost<u> cannot be capitalized into inventory</u>
Under Variable costing, the fixed cost are period cost.
So total period cost = total fixed cost
Fixed manufacturing overhead $9,450
Fixed selling and administrative $35,200
Total Fixed Cost 44,650
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