Answer:
False
Explanation:
Food contact surface is what it is called
Answer:
c. $13.20
Explanation:
Estimated factory overhead costs = $198,000
Estimated direct labor hours = 15,000 hours
Predetermined Overhead rate = Estimated factory overhead costs / Estimated direct labor hours
Predetermined Overhead rate = $198,000 / 15000 hours
Predetermined Overhead rate = $13.2 per labor hour
So, the correct option is c. $13.20
A method of costing whereby overhead costs are allocated to a job by multiplying the actual cost of the allocation base incurred by the job by a specified overhead rate is known as Normal Costing.
<h3>
What is predetermined overhead rate?</h3>
An allocation rate known as the predetermined overhead rate allocates a specific amount of manufacturing overhead to job orders or goods.
Predetermined overhead is frequently calculated at the start of each reporting period by dividing the anticipated manufacturing overhead expenses by an allocation base.
The allocation base refers to the time taken to perform an activity such as the machine hours, direct labor hours etc.
Normal Costing also known as the product costing method in which the several cost such as the direct cost, material cost, manufacturing overhead cost as well as the work in progress is added.
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A situation known as a "market failure" occurs when the market itself is unable to efficiently distribute resources in a way that balances social costs and benefits.
Market failure refers to a situation where there is an inefficient allocation of products and services on the open market. The individual incentives for rational behavior do not result in rational outcomes for the collective in a market failure.
In other words, each person chooses what is best for themselves, but those choices end up being bad for the collective. This can occasionally be demonstrated in conventional microeconomics as a steady-state disequilibrium condition.
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Answer:
500 bottles should be ordered at a time.
20 orders should the warehouse place in a year to minimize inventory costs.
Explanation:
The number of bottles which minimizes the warehouse cost is known as the economic order quantity.
Economic Order quantity minimizes both the holding or carrying cost of inventory as well as the ordering cost.
<em>Economic Order quantity = √((2 × Annual demand × cost per order) / Holding cost per unit)</em>
= √((2 × 10,000 × $125) / $10)
= 500 bottles
<em>Number of Order = Total Demand / Economic Order Quantity</em>
= 10,000 / 500
= 20 orders
Conclusion :
500 bottles should be ordered at a time.
20 orders should the warehouse place in a year to minimize inventory costs.