Answer:
Results are below.
Explanation:
Giving the following information:
Estimated overhead rate= 114% of direct labor cost.
Job 313:
Direct materials= $26,530
Direct labor= 10,500
Number of units= 1,400
<u>First, we need to allocate overhead to Job 313:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10,500*1.14= $11,970
<u>Now, the total cost:</u>
Total cost= 26,530 + 10,500 + 11,970
Total cost= $49,000
<u>Finally, the unitary cost:</u>
Unitary cost= 49,000 / 1,400
Unitary cost= $35
An CPI can be said as an index which measures the prices of "market basket" of some 300 good and services that is assumed to be fixed and the services are brought by a "typical" consumer.
Explanation:
1)<u>How does the Bureau of Labor Statistics (BLS) calculate the rate of inflation from one year to the next?</u>
The Consumer Price Index is an index which measures the prices of market basket of goods and services and it is used by the Bureau of Labor to calculate the rate of inflation, using the price of the basket from the current year divided by the base year, then multiplied by 100.
<u>2)What effect does inflation have on the purchasing power of a dollar?</u>
Inflation lowers the purchasing power of the dollar and it basically occurs when the market basket of goods is priced positively with reference to the rate of inflation.
<u>3) How does it explain differences between nominal and real interest rates</u>
A real interest rate is an interest rate that takes into account the effects of inflation in order to reflect the real cost of funds to the borrower and the real yield to an investor. A nominal interest rate refers to the interest rate that is calculated before taking the effects of inflation into account.
<u>4)How does deflation differ from inflation?</u>
Deflation occurs when the rate of inflation is negative.
Answer:
Economist Brown : Perfectly Inelastic (Vertical) Aggregate Supply
Economist Black : Perfectly Elastic (Horizontal) Aggregate Supply
Explanation:
Economy is at equilibrium where : Aggregate Demand = Aggregate Supply.
Aggregate Demand is downward sloping curve, as aggregate demand is inversely related with price. Increase in AD shifts the AD curve rightwards.
Aggregate Supply is usually upward sloping curve, as it is directly related to price. However, as per given special cases by Economists Black & Brown, it is as undermentioned :
- Black : AD increase (rightwards shift) increases only price if - Aggregate Supply is perfectly inelastic i.e non respondent to price & AS curve is vertical.
Real GDP is the total value of goods & services produced by an economy, valued at constant base prices. Increase in real GDP implies increase in production quantity.
- Brown : AD increase (rightwards shift) increases only Real GDP (quantity) if - Aggregate Supply is perfectly elastic (infinitely respondent to price, so prices constant) & AS curve is horizontal.