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3 years ago

What is an externality? how do externalities relate to socially optimal quantity?

1 answer:

7 0

An externality in business or economics is where an industrial activity has an unexpected side effect which does not figure in the cost of the goods and services involved. For example, I worked many years at a large mine. Just the existence of the mine there meant it was a no-hunting area so a side effect was that the moose used it as a refuge during hunting season which as a side effect was beneficial to the moose (and deer). Another example is that we used to crush mine rock for the haulroads for winter traction. As a result, it was found that the fines from this were concentrated with copper values so were put in the mill for processing-an unexpected outcome.

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Sleep Tight, Inc., manufactures bedding sets. The budgeted production is for 51,500 comforters this year. Each comforter require

andrezito [222]

Answer:

Total direct labor hours= 77,250

Direct labor cost= $911,550

Explanation:

Giving the following information:

Production= 51,500 units

Standard hours= 1.5 per unit

Standard rate= $11.8 per hour

<u>First, we need to calculate the direct labor hours required:</u>

Total direct labor hours= 1.5*51,500= 77,250

<u>Now, the direct labor cost:</u>

Direct labor cost= 77,250*11.8

Direct labor cost= $911,550

3 0

3 years ago

Ok i have a question: whats your dream jobs or goals in life?

Jet001 [13]

Answer:

I want to become a very accomplished writer, and a dog trainer

6 0

3 years ago

Read 2 more answers

Given the data below for production equipment,Initial Cost, P = $50,000 Salvage Value at the end of 5 years, S = $10,000. Deprec

Taya2010 [7]

Answer:

1. B. $8,000

2. C. $7,200

Explanation:

Units or production (UOP) method of depreciation bases the depreciation expense of a machine or equipment on how much it is actually used during the period.

depreciable value = $50,000 - $10,000 = $40,000

depreciation rate per unit = $40,000 / 25,000 = $1.60

Year Projected Production units Actual Production units

1 4,500 5,000

2 5,000 4,000

3 3,500 3,000

4 5,500 5,000

5 6,500 Not known

Total 25,000

depreciation expense year 4 = $1.60 x 5,000 = $8,000

accumulated depreciation year 4 = $1.60 x 17,000 = $27,200

book value = $50,000 - $27,200 = $22,800

if sold at $30,000, gain resulting from sale = $30,000 - $22,800 = $7,200

7 0

3 years ago

Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted

Reptile [31]

Answer: a.$4,576

Explanation:

Sometimes the cash balance according to the books is not the same as the cash in the bank account and this is due to some transactions not being recorded by either the bank or the firm.

Adjusted cash balance per books = Unadjusted cash balance + Note receivable and interest collected by bank - Bank charge for check printing - NSF Check

= 4,022 + 746 - 28 - 164

= $4,576

3 0

3 years ago

DonCo, Inc. sold merchandise on January 14, and accepted a 90-day, 5% promissory note in the amount of $5,000. On January 14, th

svetoff [14.1K]

Answer:

The required entries on 14 January is as follows:

Dr Notes receivable $5,000

Cr Sales $5,000

Explanation:

No doubt by selling the merchandise a sale transaction has been discharged since the ownership of the goods has changed hands between the seller and the buyer,hence the seller can record a sale by crediting sales account.

However, since the cash has not been received nor is the transaction a mere credit sale where accounts receivable would been debited,neither the cash nor accounts receivable can be debited.

The debit goes to the notes receivable account, without considering the interest as the interest is considered later on when payment becomes due.

4 0

4 years ago

Read 2 more answers