Answer:
Allocated overhead= $1,430,600
Explanation:
Giving the following information:
The company's executives estimated that direct labor would be $3,750,000 (250,000 hours at $15/hour) and that factory overhead would be $1,550,000 for the current period.
The records show that there had been 230,000 hours of direct labor.
Using direct labor hours as a base.
Predetermined overhead rate= total estimated manfacturing overhead for the period/ total amount of allocation base
Predetermined overhead rate= 1555000/250000= $6.22 per hour
Allocated overhead= Predetermined overhead rate*actual hours= 6.22* 230000= $1,430,600
Answer:
Net income increase - $4,890
Explanation:
The computation of the effect on net income is shown below:
= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)
= 3,000 pounds × ($13 - $11.37)
= 3,000 pounds × $1.63
= $4,890 increase
For determining the effect we took the difference of the prices and then multiply it with the number of pounds of the inferior product
Answer:
A) David will make pizza because he has comparative advantage in making pizza.
Explanation:
Make Pizzas Serving make pizzas/serving pasta
25 40 0,63
20 30 0,67
