Answer: B) Only materials costs are relevant
Explanation:
When choosing between alternatives, the main decider is the difference in costs. The costs that are different are the ones to decide whether a company takes on a project as it will signal the financial viability of a project.
In both alternatives, the Processing costs remain at $37,000 therefore the alternative chosen is irrelevant to these costs as they will be incurred regardless of the company's choice. They are therefore not to be considered.
Material costs on the other hand vary by the alternatives and so should be considered.
Answer:
Open market operations
Fractional reserve banking
Discount rate
Money multiplier
Federal funds rate
Explanation:
Open market operations is the buying and selling of government securities like treasury note by the Fed.
Fractional reserve banking is a system in which banks keep only a percentage of their deposits on reserve as vault cash and deposits at the Fed.
Discount rate is the interest rate the Fed charges on loans of reserves to banks.
Money multiplier is the maximum change in the money supply due to an initial change in the excess reserves banks hold
Federal funds rate is the interest rate banks charge for overnight loans of reserves to other banks.
Answer:
Estimated manufacturing overhead rate= $40 per machine hour
Explanation:
Giving the following information:
The Bolen Company forecasts that total overhead for the current year will be $8,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $10,000,000 and the actual machine hours are 80,000 hours.
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 8,000,000/200,000= $40 per machine hour
Answer:
$19,600
Explanation:
Using the FIFO method, only 25% of the inventory should be valued at full cost (conversion + materials), while the remaining 75% of the 5,600 units should be valued only at the materials cost, since conversion is still required. The total cost assigned to ending work in process inventory is:
The total cost is $19,600.
<span>Supply is the quantity of a good that Producers can and want to Sell for all possible prices offered and over a period of time, while holding constant all other factors that could affect this amount</span>