Answer:
The best allocation base for assembling activities costs are the number of parts actually assembled.
Since the number of parts is not an option int his question, the second best allocation base for the assembling process is A) direct labor hours.
If the process is highly automated, then the second best allocation base would be machine hours, but that isn't an option either.
Answer:
$205,592
Explanation:
Interest cost is the Present Value of this $ 20,000 annuity streams at time zero i.e. ( Year 2022
Value of annuity stream = $ 20,000 x 11.11839
Present Value of annuity streams at 2015 =$ 222,367.80
Discount Factor for 2017 = (1.04)-2 = 0.92456
Present Value at 2022= $ 222,367.80 x 0.92456
Service Cost= $ 205,592
Answer:
people care more about their own surplus than they do about total surplus.
Explanation:
Price control can either be a price ceiling or a price floor.
A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. It is usually set below equilibrium price.
Price ceiling increase consumer surplus and reduce producer surplus.
A price floor is when the government or an agency of the government sets the least price a good or service can be sold. It is usually set above equilibrium price.
Price floor increases producer surplus and reduces consumer surplus.
Producers would be advocating for a price floor because it increases their surplus, while, consumers would advocate for a price ceiling.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.
Producer surplus is the difference between the price of a product and the least price the seller is willing to sell the product.
I hope my answer helps you
Answer: company’s direct labor budget = $320000
Explanation:
Given that,
Standard hourly labor rate in the Cutting Department = $12
It takes 30 minutes of direct labor time to cut the lumber
Tables take one hour to assemble
Standard hourly rate in the Assembly Department = $10
Lunchco’s production budget = 20,000
Cutting Department = production budget × direct labor time × Standard hourly labor rate
= 20000 × 0.5 hours/unit × $12/unit
= $120000
Assembly Department = production budget × Tables take one hour to assemble × Standard hourly labor rate
= 20000 × 1 hour/unit × $10/unit
= $200000
Therefore,
company’s direct labor budget = Assembly Department + Cutting Department
= 200000 + 120000
= $320000
