Answer:
Allocated costs Loin Chop= $5,590
Explanation:
Giving the following information:
Product - Pounds - Price/lb.
Loin chops 3,000lb $ 5.00/lb
Ground 10,000lb $2.00/lb
Ribs 4,000lb $4.75/lb
Bacon 6,000lb $3.50/lb
The total joint cost for the current period was $43,000
First, we need to calculate the weighted average lb participation of Loin Chops:
Total lb= 23,000
Weighted average lb= 3,000/23,000= 0.13
Now, we can allocate the joint costs:
Loin Chop= $43,000*0.13= $5,590
Answer:
Marginal cost is rising.
Explanation:
Given that,
Jill Johnson currently produces = 10,000 Pizzas per month
At a total cost = $500
Marginal cost refers to the cost of producing one more unit of a commodity to satisfy a given want.
Average total cost = $500 ÷ 10,000
= $0.05
Here, Marginal cost of producing pizzas is as follows:
= Total cost of producing 10,001 pizzas - Total cost of producing 10,000 pizzas
= $500.11 - $500
= $0.11
Therefore, marginal cost of producing an additional pizza is $0.11 and it is rising, since average total cost is less than marginal total cost and ATC rising.
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