Answer:
$91
Explanation:
Given the following information,
Direct materials per unit = $54
Direct labor per unit = $20
Variable overhead per unit = $6
Fixed overhead for the year = $462,000
For Absorption costing method, it includes all costs associated with production, including fixed and variable cost. The unit product cost is calculated using direct material, direct labor and total unitary manufacturing overhead.
Unitary cost = (Fixed overhead for the year / Units produced) + Direct materials per unit + Direct labor per unit + Variable overhead per unit
Unitary cost = ($462,000 / 42,000) + $54 + $20 + $6
Unitary cost = $11 + $54 + $20 + $6
Unitary cost = $91
Therefore, the product cost per unit is $91
Answer:
Cost per unit under variable costing $
Direct material 110
Direct labour 150
Variable manufacturing overhead <u> 75 </u>
Cost per unit <u>335 </u>
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Cost per unit under absorption costing $
Direct material 110
Direct labour 150
Variable manufacturing overhead 75
Fixed manufacturing overhead ($2,700,000/90,000) <u>30</u>
Cost per unit <u>365</u>
Explanation:
In variable costing, cost per unit is calculated by the addition of all variable costs while in absorption costing, fixed manufacturing overhead application rate is added to the variable costs in order to obtain the cost per unit.
Answer:
The correct answer would be option E, Homogeneous products leave consumers with no choice, which means this statement is False.
Explanation:
Homogeneous products leave consumers with no choice is the False statement, because homogeneous products are the products which cannot be differentiated or distinguished from each other. They have almost exact physical characteristics and properties. People cannot differentiate the products of different suppliers.
So homogeneous products have a lot of substitutes, people have a vast choice range for such products. For example if you go for grocery, you can find different apples coming through different suppliers from different countries, and you are clearly not able to differentiate between them, yet you have a vast range of choice to select from the apples you like.
A.
They don't need child abuse!!
Answer:
The answer is: D) All of the above are correct.
Explanation:
Theoretically in a market economy, the supply and demand of goods should play a critical role in the allocation of resources. One basic rule in economy is that resources are scarce, and the demand and supply helps us obtain the maximum benefit from our scarce resources.
The supply and demand should tell us how much of a good or service should be produced to reach an equilibrium point were both suppliers and consumers are satisfied.
A true market economy should not be affected by external events and policies but in the real world governments exist and markets are regulated, some more than others. The supply and demand curve should help us predict how those external events will affect the economy.
