Answer:
Cost of jobs completed in February=
Direct materials issued to production+
Direct labor costs+
Manufacturing overhead applied
=(96000+113000+119000)
=$328000(B).
Answer:
$8,800
Explanation:
Calculation for What is the amount of insurance expense that would appear on the company's income statement for the first year ended December 31
First step is to calculate insurance amount per year
Insurance=$26,400/2 years
Insurance= 13,200
Second step is to calculate the insurance value per months
Insurance value=13,200/12 months
Insurance value=1,100
Now let calculate insurance expense
Insurance expense =$1,100 x 8 months
Insurance expense = $8,800
Note that May 1 to December 31 will give us 8 months
Therefore the amount of insurance expense that would appear on the company's income statement for the first year ended December 31 will be $8,800
Answer:
$25 per unit
Explanation:
Data provided in the question
Selling price per unit = $25
Fixed cost per unit = $8
Variable cost per unit = $10
Based on the above information, the price that division A should charged from Division B is equal to the selling price per unit i.e $25 because Division A currently sells and operates in a competitive market so it should be same for division B
Answer:
Explanation:
This could be due a number of factors.
1 Externality effect
2 There could also be market failure, when property rights are not properly defined.
Externality is the effect of a third party on a property right, when all parties cannot come to an agreeable resolution on properties this could lead to inefficient use of land.
Also when the property rights are not put in place its difficult to come to a resolution that satisfies all parties.
