Answer:
$2,880
Explanation:
Given that,
Total machine-hours = 30,300
Total fixed manufacturing overhead cost = $ 575,700
Variable manufacturing overhead per machine-hour = $ 4.00
For Job T687:
Number of units in the job = 10
Total machine-hours = 30
Direct materials = $730
Direct labor cost = $1,460
Total variable overhead estimated:
= Variable manufacturing overhead per machine-hour × Total machine-hours
= $4 × 30,300
= $121,200
Total overhead estimated:
= Total variable overhead estimated + Total fixed overhead estimated
= $121,200 + $575,700
= $696,900
Predetermined overhead rate:
= Total overhead estimated ÷ Total machine-hours
= $696,900 ÷ 30,300
= $23 per machine hour
Total overhead applied:
= predetermined overhead rate × Total machine hours for Job T687
= $23 × 30
= $690
Total job cost:
= Direct material + Direct labor + Total overhead
= $730 + $1,460 + $690
= $2,880
Answer:
C. Reject W
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) which is shown below:
Expected return = Risk-free rate of return + Beta × (Market rate - Risk-free rate of return)
= 7% + 1.6 × (12%-7%)
= 7% + 1.6 × 5%
= 7% + 8%
= 15%
The Project W should be rejected as it gives only 14% expected return which is less than the derived expected return.
Answer:
Low-priced inventory with high turnover
Explanation:
GOT IT RIGHT IN QUIZ
Answer:
Consumer surplus decreases by $180.
Explanation:
Current consumer surplus = $25 * 90 unit = $2250
If the price of goods drop to $23 then the new consumer surplus will be
$23 * 90 units = $2070
The change in consumer surplus is $180 .
