Answer:
(1) Depreciation on factory equipment. ____MOH
(2) Depreciation on delivery trucks. ____ Period Cost
(3) Wood used to build a bookcase. ____Direct Material
(4) Production supervisor’s salary. ____ MOH
(5) Glue and screws used in the bookcases. ____ MOH
(6) Wages of persons who assemble the bookcases. ____Direct Labor
(7) Cost to run an ad on local radio stations. ____Period Cost
(8) Rent for the factory. ____ MOH
(9) CEO’s salary. ____ Period Cost
(10) Wages of person who sands the wood after it is cut.
Direct Labor
Period Cost are costs that are not directly involved in the manufacturing costs of a product but are incurred in a particular period. These expenses include advertising and selling expenses.
Direct Materials are material used to make a product . For example wood is a direct material for making shelves.
Direct Labor are the wages paid to the people who work in the production of a product.
Manufacturing Overheads are charges associated with the manufacturing of a product.they are indirect costs of the production like rent of the building etc.
Answer:
Real GDP will rise by $100 million
Explanation:
Aggregate Demand [AD] is total amount of goods & services, all sectors of an economy are planning to buy . So AD = Aggregate Planned Expenditure [APE]
Aggregate Supply [AS] is total amount of goods & services, all sellers are planning to sell. As total output value of goods & services produced is distributed among factors of production, AS = National Income [NY] = GDP
At equilibrium : AD or APE = AS or NY or GDP
If AD or APE increases by $100 million :
AD or APE > AS or Aggregate Planned Production or GDP . This implies willingess to buy > willingness to produce. So, inventory levels will fall below desired level. To mantain inventory level, production [AS] & income level [GDP] will rise till it becomes equal to risen AD or APE
So, GDP will also rise by $100 million
Answer:
Investment in stock C is $122450.3311 rounded off to $122450.33
Explanation:
A portfolio which is equally as risky as market should have a beta equal to the beta of the market as beta is a measure of the riskiness. The beta of market is always equal to 1. The formula for beta of a portfolio is as follows:
Portfolio beta = wA * Beta A + wB * Beta B + ... + wN * Beta N
Where w represents the weight of each stock in the portfolio.
Let investment in stock C be x
1 = 146000/500000 * 0.91 + 134000/500000 * 1.36 + x/500000 * 1.51
1 = 0.26572 + 0.36448 + 1.51x / 500000
1 - 0.6302 = 1.51x / 500000
0.3698 * 500000 = 1.51x
1844900 / 1.51 = x
x = $122450.3311 rounded off to $122450.33
Answer:
They sold 40 shirts and 40 magazine subscriptions.
Explanation:
profit per shirt = $5
set up costs = $40
profit per magazine = $4
S = shirts
C = setup costs
M = magazine
5S - C = 4M
S = M so we replace
5S - 40 = 4S
5S - 4S = 40
S = 40
They sold 40 shirts and 40 magazine subscriptions.
