Answer:
An allocation of labor (L) and capital (K) between two firms that makes the firms' isoquant curves tangent in an Edgeworth box ( C )
Explanation:
A contract curve is a curve on which the various final allocations of two goods or service between two people are represented and this could be mutually beneficial as well. hence the best description of a point that lies on an input contract curve is An allocation of labor (L) and capital (K) between two firms that makes the firms' isoquant curves tangent in an Edgeworth box
Answer:
Break-even point (dollars)= $234,000
Explanation:
Giving the following information:
Sales (4,000 units) $ 240,000
Variable expenses 156,000
Fixed expenses 81,900
First, we need to calculate the selling price and unitary variable cost:
Selling price= 240,000/4,000= $60 per unit
Unitary variable cost= 156,000/4,000= $39 per unit
Now, we can calculate the break-even point in dollars, using the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 81,900/ [(60 - 39)/60]
Break-even point (dollars)= $234,000
Answer:
The Number of warehouses completed would not be a rational base for allocating overhead costs to the warehouses.
Explanation:
For allocating the overhead cost to the warehouse. Following things need to be considered.
1. Square footage of the warehouses : Based on the square foot of the warehouse, the overhead cost can be easily allocated. As different warehouses have different square foot. So there would be different allocation criteria for each warehouse.
2. Labor Hours : According to the labor hours, the overhead expense can be allocated. In warehouse, the size of labor is matter. As more labors are available, the chances of more allocation expenses would be there and if there is less labors so the allocation expenses would be less.
Depending upon the size of the labors, the allocation of overhead differs.
3. Direct material cost : The warehouse is required when more supplies of material is to be required. So here, direct material plays an very important role while allocating the overhead cost. Depending upon the quantity of material, the overhead expenses differs.
4. Number of warehouses completed : As without knowing the size and capacity of the warehouses, it is difficult to allocate the overhead expense. Moreover, the same cost is been allocated which is not acceptable.
Hence, the Number of warehouses completed would not be a rational base for allocating overhead costs to the warehouses.
Answer:
hiring higher-quality workers at a higher wage
Explanation:
Possible causes of unfavorable labor rate variances include:
An increase in pay for employees.
Working overtime hours paid at a premium above the basic rate.
Using direct labor employees who were more skilled and experienced than the ‘normal’ and who are paid more than the standard rate per hour (adverse rate variance).
Based on the above discussion, the answer is hiring higher-quality workers at a higher wage
Answer:
Dr Interest expense -$21,720
Cr interest Payable - $21,720
Explanation:
Interest
Since it is a short-time loan (3-month), the interest rate will be prorated to 3-month.
Interest expense = $362,000 × .06 × 3/12 = $21,720
Hence, following entries will be recorded :
Dr Interest expense -$21,720
Cr interest Payable - $21,720
For Principal amount Borrowed:
Cr Loan payable $362000
Dr. Bank Account $362000
Upon Settlement :
Dr. Interest Payable $21,720 and Cr Bank Account $21,720
Dr. Loan payable $362000 and Cr Bank Account $362000
