Answer:
Flexible Budget for 18,000 units $
Direct labour ($6 x 18,000) 108,000
Direct material ($1 x 18,000) 18,000
Total fixed cost <u>48,000</u>
Total cost <u>174,000</u>
Direct labour cost per unit = $72,000/12,000 units = $6 per unit
Direct material cost per unit = $12,000/12,000 units = $1 per unit
Explanation:
In this case, we need to determine the direct labour cost per unit by dividing the total labour cost in the static budget by the units of production in the static budget. We also need to calculate the direct material cost per unit by dividing the total material cost in the static budget by the units of production in the static budget. Then, we will multiply the direct labour cost per unit and direct material cost per unit by the units of flexible budget. The total fixed cost remains fixed throughout the level of activities.
Answer:
$32769.90
Explanation:
As, Amount = Principcal( 1 + Rate/100)^n
So, 25000 ( 107/100) ^ 4 (as, n = time = 4 years)
So answer= $32,769.90
Answer:
- a. 2/3 gallon
- b. 5/7 gallon
Explanation:
1. Megan takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza.
If she makes a pizza therefore, that is 2 hours that could have been used to make a gallon of root beer. However, it takes 3 hours to make a complete gallon so in those 2 hours only;
= 2/3 gallons would have been made
2. Susan takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.
Like Megan above, the 5 hours that would be used for Pizza would have gone towards making a gallon of beer. If it takes 7 hours to make a gallon then those 5 hours would have made;
= 5/7 gallons of root beer.
3. Absolute Advantage: Megan
The person with the absolute advantage is the person that can produce more goods with the same amount of costs. Megan can make more pizza in a smaller amount of time than Susan so she has Absolute advantage.
Comparative Advantage: Megan
The person with a Comparative advantage is the one that has the lowest opportunity cost when producing a good. Megan again has a lower opportunity cost with an opportunity cost of 2/3 gallons.
I think the answer is a but I am not for sure