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Serggg [28]
3 years ago
5

Manley Co. manufactures office furniture. During the most productive month of the year, 5,000 desks were manufactured at a total

cost of $87,000. In its slowest month, the company made 2,000 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are:
Business
1 answer:
grandymaker [24]3 years ago
4 0

Answer:

$24,500

Explanation:

For computing the total fixed cost first we have to determine the total fixed cost which is shown below:

Variable cost per desk = (Total high cost - total low cost) ÷ (High number of desk manufactured - low number of desk manufactured)

= ($87,000 - $49,500) ÷ (5,000 desks - 2,000 desks)

= $37,500 ÷ 3,000 desk

= $12.5

Now the fixed cost equal to

= Total high cost - (High number of desk  × Variable cost per hour)

= $87,000 - (5,000 desks × $12.5)

= $87,000 - $62,500

= $24,500

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Your local government is concerned about the lack of affordable apartments in the area. To combat the problem it proposes to set
Sidana [21]

Answer: excess demand, underestimate

Explanation:

P= 1200 - 2Q

300= 1200 - 2Q

2Q = 1200 -300

2Q = 900

Q = 900/2

Q = 450

Quantity demanded is 450 units

Quantity supplied Q - P = 300

Excess demand = 450 - 300 = 150

The policy will lead to excess demand of 150 per month.

P= 1200 - 2Q

P= 1200 - 2(300)

= 1200 - 600

= 600

Willing to pay price is $600.

Deadweight loss = 0.5 × (Price buyers are willing to pay - ceiling price) × (market quantity supplied - ceiling quantity supplied)

= 0.5(600-300)(400-300)

= 0.5(300)(100)

= 15000

Deadweight loss is $15000

The welfare loss underestimate the actual loss

5 0
4 years ago
Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each p
Goryan [66]

Answer:

Lillich, Inc.

c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.

Explanation:

a) Data and Calculations:

Direct labor rate = $28.00 per DLH

                                         Product U6                      Product R5      Total

Expected production            690                                  1,060

Direct materials cost/unit   $250.40                             $167.80

Direct Labor Hours/unit         8.9                                     5.9

Total direct labor hours        6,141                                 6,254        12,395

Direct labor costs               $171,948 ($28*6,141)          $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690)   $177,868 ($167.8*1,060)

Total overhead                 $636,360                         $658,752                 $1,295,112

Total production cost        $981,084                         $1,011,732

Expected production            690                                  1,060

Cost per unit                      $1,421.86                         $954.46

Traditional costing:

Direct labor costs               $171,948 ($28*6,141)          $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690)   $177,868 ($167.8*1,060)

Total overhead                   $641,612                          $653,418                 $1,295,112

Total production cost       $986,336                       $1,006,398

Expected production            690                                  1,060

Cost per unit                      $1,429.47                         $949.43

Allocation of overhead based on direct labor hours

= $ 1,295,086/12,395

= $104.48 per DLH

Product U6 = $641,612 ($104.48 *  6,141)

Product R5 = $653,418 ($104.48 * 6,254)  

Estimated Expected Activity

Activity Cost Pools  Activity      Overhead  Product     Product   Total

                               Measures       Costs          U6           R5    

Labor-related           DLHs         $ 201,638    7,125        7,280     14,405

Production orders   Orders            72,840   1,350         1,250      2,600

Order size                MHs          1,020,608   6,500        6,800    13,300

Total                                        $ 1,295,086

Overhead rates:

Labor-related = $201,638/14,405 = $14.00 per DLH

Production orders = $72,840/2,600 = $28.00 per order

Order size = $1,020,608/13,300 = $76.74 per machine hour

Overhead allocation:

                               Product U6                      Product R5              Total

Labor-related         $99,750 (7,125*$14)       $101,920 (7,280*$14) $201,670

Production orders    37,800 (1,350*$28)         35,000 (1,250*$28)    72,800

Order size               498,810 (6,500*$76.74) 521,832 (6,800*$76.74) 1,020,642

Total overhead   $636,360                         $658,752                 $1,295,112

5 0
3 years ago
Heather is American and works for a U.S.-based company in Brazil. It appears the company has made a(n) ______ staffing choice.
Naya [18.7K]

Answer:

ethnocentric

Explanation:

A choice of ethnocentric staff can be defined as an approach in which an organization chooses to hire a team of staff of the same nationality as the host company, which guarantees several advantages and also some disadvantages.

A significant advantage is that having employees of the same nationality as the headquarters company, ensures that there is greater cohesion between culture and language, which guarantees an advantage in reducing barriers that may negatively affect the flow of organizational operations.

5 0
4 years ago
What kinds of things does a manufacturer produce?
ohaa [14]

Answer:

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The question : What kinds of things does a manufacturer produce if rephrased is simply the same as asking what to produce.The question of what to produce is one of the basic economic problems that confront any society. This problem arises mainly as a result of the fact that human wants are unlimited relative to the available resources .

The question : What kinds of things does a manufacturer produce if rephrased is simply the same as asking what to produce.The question of what to produce is one of the basic economic problems that confront any society. This problem arises mainly as a result of the fact that human wants are unlimited relative to the available resources . It is practically impossible to produce all human wants or needs hence the need for resource allocation in order to meet the pressing needs of people .

The question : What kinds of things does a manufacturer produce if rephrased is simply the same as asking what to produce.The question of what to produce is one of the basic economic problems that confront any society. This problem arises mainly as a result of the fact that human wants are unlimited relative to the available resources . It is practically impossible to produce all human wants or needs hence the need for resource allocation in order to meet the pressing needs of people .Some factors help to determine what to produce such factors are

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5 0
2 years ago
Which of the following describes an externality and which does​ not? Explain the difference. a. A policy of restricted coffee ex
luda_lava [24]

Answer: The correct answer is "A. Choice​ (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market​ effects, which are not externalities. ".

Explanation: Choice​ (b) describes an externality. The advertising blimp imposes a cost on the motorist that is not accounted for in the market price of advertising. The restriction on coffee exports has market​ effects, which are not externalities.

An externality is a situation in which the costs or benefits of producing or consuming a good or service are not reflected in its market price despite having an external impact.

In case A, the situation is reflected in the market price, while in case B, the external situation, despite having an impact, does not affect the market price.

8 0
3 years ago
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