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Alenkasestr [34]
4 years ago
14

Suppose that disposable income, consumption, and saving in some country are $200 billion, $150 billion, and $50 billion, respect

ively. Next, assume that disposable income increases by $20 billion, consumption rises by $14 billion, and saving goes up by $6 billion. What was the APC before the increase in disposable income?
Business
1 answer:
Angelina_Jolie [31]4 years ago
6 0

Answer:

The APC before change in disposable income was 0.75.

Explanation:

The average propensity to consume shows the part of income that is is consumed. It  can be calculated as the ratio of total disposable income to total consumption.

The disposable income is given as $200 billion, the consumption level is $150 billion, the savings level is $50 billion.

Average propensity to consume is

= \frac{Consumption}{Disposable\ income}

= \frac{\$ 150\ billion}{\$ 200\ billion}

= 0.75

So, the average propensity to consume is 0.75.

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4 0
4 years ago
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour
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<u>Explanation:</u>

1. Calculation of labor spending variance for the month of march

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=(13 x 63000) - (12 x (26000 x 3))

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Variable manufacturing overhead planning cost= (Planning budget units x required hours x cost per hour)

=(21000 x 3 x7)

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Variable manufacturing overhead planning cost is $441,000

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=(26600 x 3 x7)

=$558,600

Variable manufacturing overhead  cost is $558,600

4. Calculation of Variable overhead rate variance

Variable overhead rate variance= Actual hours ( actual rate - standard rate)

=63000((510930/63000)-8)

=63000(8.11-8)

=63000(0.11)

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Variable overhead rate variance is =6930

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Answer:

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Explanation:

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Answer:

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In monopolistic competition prices are usually higher than in perfect competition.
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