All of them are the non-manufacturing business where process costing would most likely be used.
Explanation:
- All are non-manufacturing business which are as follows,
- An auto body shop.
- A furniture repair shop.
- A laboratory that tests water samples for lead A tailoring shop.
- A beauty shop.
- Non-manufacturing business costs refers to those business where it is incurred outside the factory or production unit
- Non-manufacturing costs includes,
- selling expenses
- general expenses
- Selling Expenses
- It is also called as selling and distribution expenses.
- Non-manufacturing expenses have no impact on the production cost of the company due to their period costs.
Answer: $2500
Explanation:
From the question,
Average variable cost(AVC) = $50
Average total cost (ATC) = $75
Output (Q) = 100
Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:
AFC = ATC - AVC
AFC = $75 - $50
AFC = $25
We should note that:
AFC = TFC / Q
TFC = AFC × Q
TFC = $25 × 100
TFC = $2500
Therefore, total fixed cost is $2500
Answer:
cost of machining per ceiling fan= $18 per unit
Explanation:
<em>Activity-based costing is a form of absorption costing where overheads are charged to product using cost drivers. Under this method, overheads are first analyzed and categorized by the activities responsible for them and then charged to product based on the amount of benefits enjoyed using cost drivers.</em>
For example, the machining overhead would charged to each ceiling fan using the machining overhead rate per machine hours.
Cost of machining per ceiling fan = Machining hours × overhead rate per machine hours
= 2.50 × $7.20= $18 per unit
cost of machining per ceiling fan= $18 per unit
<span>If pizza and hamburgers are substitutes, then a rise in pizza prices will cause consumers to move to hamburgers instead. Assuming a fixed supply curve for hamburgers, this will push out the demand curve, which will cause the equilibrium of the two curves to move to a point of higher price and higher quantity. As such, the correct answer is b: a rise; an increase.</span>