Answer:
The answer is: Yes, it's a decreasing cost industry.
Explanation:
Currently the total cost per unit is:
- $130,000 / 125,000 bottles = $1.04 per bottle
If the total costs increase by $5,000 for every 25,000 extra bottles produced, then the total cost per unit is:
- $135,000 / 150,000 bottles = $0.90 per bottle
If the bottle production keeps increasing to 175,000 bottles, the total costs will only increase by $5,000. So the total cost per unit is:
- $140,000 / 175,000 bottles = $0.80 per bottle
So as the production level increases, the cost per unit decreases.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
The company uses the activity rates to assign overhead costs to products:
Processing customer orders $96.63 per customer order
Assembling products $2.45 per assembly hour
Setting up batches $58.89 per batch
Last year, Product F76D involved 9 customer orders, 436 assembly hours, and 26 batches.
Allocated overhead= 9*96.63 + 436*2.45 + 26*58.89= $3,469.01
Answer:B. China’s Three Gorges Dam
Explanation:
China’s Three Gorges Dam is 1.4 miles wide (2.3 kilometers) and 630 feet (192 meters) .
It holds more than 3 trillion gallons of water.
The Guri dam in Venezuela is the second largest dam in the world.
The Itaipu dam is the third largest dam in the world.
The machine's first year depreciation expense is $3000.
The units-of-production depreciation method is a depreciation method where the depreciation expense of an equipment depends on the units of a product produced in a given period.
Deprecation expense = (total units produced in year 1 / total units that the machine can produce) x (cost of the asset - salvage value)
<em><u>Deprecation expense in the first year </u></em>
(3,000 / 8,000) x ($10,000 - $2,000)
0.375 x $8,000 = $3000
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