Answer:
Using the high-low method, the estimated variable cost per machine hour for utilities is $1.875/ machine hour
Explanation:
High Low Method is a method used to separate Fixed and Variable Costs Components of a semi-variable cost/overhead.
<em>Step 1 : Establish 2 points - The Highest and The Lowest</em>
High - March 2,640 hrs : $8,100
Low - April 720 hrs : $ 4,500
<em>Step 2 Calculate the variable Cost Component</em>
Variable Costs = Overhead Cost difference /Activity difference
= ($8,100-$4,500)/(2,640hrs-720hrs)
= $3,600/1,920hrs
= $1.875/hr
Answer:
a) What amount must Marla earn in the new city to maintain her current buying power?
$54000
If Marla accepts the new job, will her buying power increase?
Yes increase in $2000
Explanation:
Earn Offer
50000 56000
8%
4000
54000 56000
2000
Answer:
b. The U.S. has an absolute advantage in computer chips manufacturing.
Explanation:
South Korea's opportunity cost of producing 1 bed linen = 100/50 = 2 computer chips. Where, US' opportunity cost of producing 1 bed linen = 150/100 = 1.5 computer chips.
As US' opportunity cost of producing 1 bed linen is less than that of South Korea's , Therefore, US has comparative advantage in production of bed linen and south korea will have comparative advantage in production of the other good i.e. computer chips.
Now looking at the absolute advantage, US has absolute advantage in production of both goods i.e. Bed linen and computer chips, because using same one hour of labor input, US can produce more bed linen and computer chips than South korea does.
Answer:
1.The interest expense Kieso reported at the end of its last fiscal year: $5,700
2. The interest expense Kieso reported at the end of its curent fiscal year: $28,500
Explanation:
The interest amount Kieso Company had to pay for the loan:
($760,000 x 9%)/12 x 6 = $34,200
In Kieso's fiscal year ends on December 31, the company had borrowed the $760,000 for one month. Following the Accrual basis, Kieso would report at the end of its last fiscal year the interest expense for 1 month:
$34,200/6 = $5,700
At the end of its current fiscal year, the company would report the interest expense for remainder months (5 months):
$34,200/6 x 5 = $28,500
