If you have a total consumption budget for each month, then at least consumption budget of between three to six months should be put in your emergency fund account to cater for financial dilemma which may occur at any time due to loss of job or other factors. After this, you can now start saving toward long term goals by saving at least 10% of your income.
Answer:
Instructions are listed below
Explanation:
Giving the following information:
Marvel Company uses a predetermined overhead rate in applying overhead to production orders on a labor-cost basis in Department A and on a machine-hours basis in Department B.
Dept. A
Factory overhead $ 71,250
Direct labor-hours 8,100
Dept. B
Factory overhead $46,055
Machine-hours 15,100
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base=
Dept A:
Estimated manufacturing overhead rate= 71250/8100= $8.80 per direct labor hour
Dept B:
Estimated manufacturing overhead rate= 46055/15100= $3.05 per direct machine hour
Do you have any more info
Answer:
$ 30,000.00
Explanation:
The cost of warranty is expensed the same period the sale is made. Warranty can be estimated, and expensing them together with sale matches a sale and its relevant cost.
<u>In this case: </u>
Estimated warranty @ $15 dollar per unit sale
total unit sold =2000
Warranty amount = $15 x 2000
=$ 30,000.00
To be expensed when the sale is made
Answer:
The income effect and substitution effect work in opposite directions and income effect is dominant.
Explanation:
In case of a normal good, both the income effect as well as substitution effect work in the same direction. A fall in the price of a product will increase the purchasing power of the consumer so its quantity demanded will increase.
The consumers will also prefer the cheaper good so the substitution effect will cause the quantity demanded to increase.
In case of an inferior good, however, income elasticity is negative. The income effect and substitution effect work in opposite directions.
A price decrease in the case of an inferior good will increase the real income and purchasing power of the consumer. This will cause the quantity demanded of the inferior good to decline as the consumer will prefer a substitute normal good.
