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3 years ago

Economists consider both explicit and implicit costs when measuring economic profit

1 answer:

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Explicit and Implicit costs should be considered when measuring economic profit because a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable. Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs. Explicit costs are monetary costs a firm has. Implicit costs are the opportunity costs of a firm’s resources.

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Coates Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. T

andrew-mc [135]

Answer:

Selling price per unit= $233.87

Explanation:

Giving the following information:

Overhead:

Estimated overhead= $249,000

Variable manufacturing overhead= $3.80 per machine-hou

Estimated machine-hours= 30,000 machine-hours.

Job X784:

Number of units in the job 50

Total machine-hours 250

Direct materials $ 470

Direct labor cost $5,500

Selling price= 30% mark up

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (249,000/30,000) + 3.8

Predetermined manufacturing overhead rate= $12.1 per machine hour

Now, we can determine the total cost of Job X784:

Total cost= 470 + 5,500 + (12.1*250)

Total cost= $8,995

Finally, the selling price per unit:

Unitary cost= 8,995/50= $179.9

Selling price per unit= 179.9*1.30= $233.87

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3 years ago

The Bob Buckham Senior Center, a not-for-profit entity, serves a hot meal to senior citizens every Friday evening. All the food

elena-14-01-66 [18.8K]

Answer:

c. Report $10,000 revenue and expense | Disclose in the notes

Explanation:

Not-for-profit entities must report the fair value of all the goods they receive as donations. in this case, they would have to report the $10,000 worth of food received from a local supermarket. But they are not required to report the value of volunteer work, they only have to disclose it on the footnotes of their financial statements.

4 0

3 years ago

What were the origins of the Asian currency crisis?

valina [46]

Answer:

East and South east Asia

Explanation:

The crisis that later blew up to become a financial crisis over the year started from the east and south east Asia countries of Thailand , Indonesia and South korea in 1997 before spreading to other counties leading to a fall in value of the currencies ,and fall in stock market and assets prices as the exchange rate continued to nosedive.

It was sparked up by the inappropriate borrowing by the private sector in the previous years

8 0

2 years ago

question 4 according to a forbes magazine study, the annual cost of cybercrime in the united states alone has reached how much?

jeka94

According to a forbes magazine study, the annual cost of cybercrime in the united states alone has reached about $100 million.

<h3>What is a cybercrime?</h3>

This refers to the use of computers or other electronic devices via information systems such as organizational networks or the Internet to facilitate illegal behaviors.

In 2021, the forbes magazine study shows that the annual cost of cybercrime in the united states alone has reached about $100 million.

Read more about cybercrime

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4 0

1 year ago

Payback Period Payson Manufacturing is considering an investment in a new automated manufacturing system. The new system require

MrRissso [65]

Answer:

a. 4 years

b. 5 years

Explanation:

The payback period is the time taken for the cash inflows from an investment to equal to the initial cash outflow or amount invested. To get this, the cash inflow are deducted from the outflows until the net is zero.

Considering both expected cash flows (all amounts in $);

Period Initial out flow Inflow Balance Inflow Balance

Year 0 (1,200,000) 0 (1,200,000) 0 (1,200,000)

Year 1 300,000 (900,000) 150,000 (1,050,000)

Year 2 300,000 (600,000) 150,000 (1,050,000)

Year 3 300,000 (300,000) 400,000 (1,050,000)

Year 4 300,000 0 400,000 (1,050,000)

Year 5 100,000 (1,050,000)

From the table above, with an inflow of $300,000 yearly, the inflows would equal the total outflow in 4 years while the annual cash flows: $150,000, $150,000, $400,000, $400,000, and $100,000 would make the inflows equal to the outflows in 5 years.

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3 years ago

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