Answer:
c) a firm does not have sufficient time to change the level of use some of its inputs.
Explanation:
The definition of short-run in economics is not a term to be used for a specific certain period of time but it means that the period of time is too short that the firms cannot change the level they are using of some of their inputs or costs. It means they do have fixed costs they cannot change. For example, all machinery installed, a yearly rent paid, electricity or others that the firm cannot change unless there is sufficient time. In a short period of time, it will have those costs anyway. The firm cannot change the level of that input. And it is short run of at least one input. It may be many. But it is not necessary to have all inputs unchanged to consider that period of time as short-run.
However, firms can change level of inputs if they have more time. That is cost the long run. All costs are variable costs when we are in long run.
Answer:
Overhead application rate
= <u>Budgeted overhead</u>
Budgeted machine hours
= <u>$900,000</u>
30,000 hours
= $30 per machine hour
Overhead cost assigned to the product
= Overhead application rate x Actual machine hours
= $30 x 12,000 hours
= $360,000
Explanation:
In this case, there is need to determine the overhead application rate, which is the ratio of budgeted overhead to budgeted machine hours.
Then, we will obtain the overhead cost assigned to the product by multiplying the overhead application rate by actual machine hours.
Answer:
Variable cost
Explanation:
because sometimes companies set fixed price to other product
Answer:
$99,600
Explanation:
If the ending inventory was understated that means that they have less of the inventory than they had originally expected, this means that they sold more than they have calculated and therefore have not included the $7,800 in the net income. Therefore, we would need to add this amount to the actual reported net income to get the correct net income for 2022...
$91,800 + $7,800 = $99,600
The correct net income for 2022 is $99,600
