Answer:
consumer income rises; pizza dough decreases in price
⇒ output increases; price uncertain
- higher consumer income results in higher prices
- but decrease in the price of inputs results in lower prices
- both result in higher output
consumer income falls; pizza dough decreases in price
⇒ price decreases; output uncertain
- both result in lower prices
- falling consumer income result in lower output
- decrease in the price of inputs results in higher output
consumer income falls; cheese increases in price
⇒ output decreases; price uncertain
- both lower output
- falling consumer income decreases price
- increase in price of inputs increases price
consumer income rises; cheese increases in price
⇒ price increases; output uncertain
- both increase price
- rising consumer income increase output
- increase in price of inputs decreases output
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
The company uses a predetermined overhead rate of $28 per machine-hour to apply overhead cost to jobs. A total of 21,600 machine-hours were used during the year.
<u>We don't have enough information to calculate the over/under applied overhead and a schedule cost of goods manufactured. But, I can provide with the formulas to calculate 1 and 2:</u>
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1) Based on the predetermined overhead rate and the actual machine-hours for the period you can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
With the allocated overhead you can calculate the over/under allocation:
Over/under allocation= real MOH - allocated MOH
If real MOH < allocated MOH= Overhead was overallocated.
2) cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
Coke - 24 (i.e $6/$1.50 = 4 packs x 6)
Pepsi - 36 (i.e $6/$1 = 6 packs x 6)