Answer:
Continue operating; $699
Explanation:
The equilibrium price is $10.
MR = MC at 233 units of output.
At this output level, ATC is $12, and AVC is $9.
The AFC or average fixed cost
= ATC - AVC
= $12 - $9
= $3
The total fixed cost
=
=
= $699
The equilibrium price is able to cover the average variable cost so the firm should continue production in the short run.
Answer:
$96,000
Explanation:
The computation of the overhead amount assigned to Product A1 each year is shown below:
= Overhead cost incurred per year ÷ number of hours worked by machine department × machine hours at Product A1
= $480,000 ÷ 5,000 hours × 1,000 hours
= $96,000
We simply applied the above formula so that the overhead cost assigned could come
Answer:
Following are the solution to this question:
Explanation:
Calculating the cost of the product sold:
FIFO:
June 1: 23 units costing of each
Aug 27: 23 units costing of each
13 units costing of each
Total cost of product sold
LIFO:
June 1: 23 units costing of each
Aug 27: 36 units costing of each = 540
Total cost of product sold
Average cost:
June 1: 23 units costing of each
Aug 27: 36 units costing of each
Total cost of product sold