The court will most likely consider the parties' relative bargaining power.
<u>Option: C</u>
<u>Explanation:</u>
Bargaining power is the collective ability of groups to put control over one another in a circumstance. If all sides are in a dispute on an equivalent basis, then they would have equal bargaining power, such as in a reasonably free market, or between a monopoly and monopsony fairly balanced.
Purchaser bargaining power relates to the leverage customers may impose on businesses to get them to offer higher quality goods, improved customer satisfaction and lower costs. A powerful purchaser will make a market more profitable and diminish the seller's profit potential.
Answer:
d. $4,500
Explanation:
The computation of depreciation expense on the new equipment is shown below:-
For computing the depreciation expense on the new equipment first we need to find out the Depreciation per annum which is here below:-
Depreciation per annum = (Cost - Residual value) ÷ Life
= ($76,000 - $4,000) ÷ 8
= $72,000 ÷ 8
= $9,000
Depreciation for 1 year calendar (July 1 to Dec 31) = Depreciation per annum × 6 months ÷ Total number of months in a year
= $9,000 × 6 ÷ 12
= $4,500
So, the depreciation expenses for the year end up-to 31st Dec is $4,500
Answer:
$652,858
Explanation:
Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity
= $717,474 ÷ 364,200
= $1.97 per direct labor hour
Allocated overheads = Predetermined overhead rate x Actual Activity
= $1.97 x 331,400 direct labor hours
= $652,858
therefore,
The overhead allocated for May is $652,858.
Answer:
the budgeted selling and administrative expenses for July is $64,100
Explanation:
The computation of the budgeted selling and administrative expenses for July is shown below:
= Budgeted selling & admin cost + (per unit sold × July units)
= $20,000 + ($9 × 4,900 units)
= $20,000 + $44,100
= $64,100
hence, the budgeted selling and administrative expenses for July is $64,100
We simply applied the above formula
