A predetermined manufacturing overhead rate is calculated in the same manner as an actual manufacturing overhead rate except tha
1 answer:
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Answer:
See the attached and the explanation below.
Explanation:
a. A production possibility curve (PPC) refers to a curve that displays different combinations of the maximum output of two goods that can be produced from a given or fixed amount of input and technology.
An example of PPC is figure (A) in the attached document.
b. When there is a major technical breakthrough in the capital goods industry and the new technology is widely adopted only in this industry, it will make the PPC to rotate outward at the capital good axis only, while consumer good axis will remain the same (see the curve and the arrow in Figure B in the attached). This implies that the break has enabled the economy to produce more of capital goods while consumer goods production level remains the same.
c. When there is a technological advance in consumer goods production, but not in capital goods production, it will make PPC to rotate outward at the consumer good axis only, while capital good axis will remain the same (see the curve and the arrow in Figure C in the attached). This implies that the break has enabled the economy to produce more of consumer good while capital good production level remains the same.
Answer:
C. $162,000
Explanation:
As for the provided information,
The cost of machine = $500,000
Residual value = $14,000
Therefore amount to be depreciated in useful life = $500,000 - $14,000 = $486,000
Using units of production method we have:
Total expected hours of production = 18,000
Therefore, depreciation per hour = $486,000/18,000 = $27 per hour
Total use in current year = 6,000 hours
Therefore, depreciation in current year = $27 6,000 = $162,000