Answer:
$85 per machine hour
Explanation:
Actual Budgeted
Fixed costs $50,000 $47,960
Machine hours – Assembly 1,900 1,976
Variable costs – Assembly $121,000 $120,000
since the single rate method does not distinguish between fixed or variable costs, in order to determine the cost allocation rate we must add the fixed allocation rate and the variable allocation rate:
- variable allocation rate = $120,000 / 1976 machine hours = $60.73
- fixed allocation rate = $47,960 / 1976 = $24.27
total = $60.73 + $24.27 = $85 per machine hour
That statement is false.
WHAT ARE "OPERATING ASSETS"?
Operating assets are assets acquired for use of the ongoing operations of a business.
OPERATING ASSETS INCLUDE:
Inventory, accounts receivable, & fixed assets.
WHY IS IT FALSE?
This statement would've been correct up until this point: "but not any depreciable fixed assets."
An increase in aggregate demand when the economy is below potential output increases real output and has little or no effect on price levels.
The Keynesian aggregate supply curve shows that the AS curve is fairly flat. This means that during economic downturns, firms supply the quantity of goods demanded at a particular price level.
The Keynesian zone is on the left side of his SRAS curve and is fairly flat, so movements in aggregate demand affect production but have little effect on price levels.
The Keynesian model suggests that in the short term less flexible wages and prices will push the aggregate supply curve upward. This model makes it more likely that the economy will fall below the full employment level. This means companies can hire new workers and increase production without raising wages or prices.
Learn more about Keynesian at
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