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Cerrena [4.2K]
3 years ago
7

Song, Inc., uses the high-low method to analyze cost behavior. The company observed that at 22,000 machine hours of activity, to

tal maintenance costs averaged $33.40 per hour. When activity jumped to 25,000 machine hours, which was still within the relevant range, the average total cost per machine hour was $30.40.On the basis of this information, the variable cost per machine hour was:___________A. $8.40.B. $22.00.C. $25.00.D. $30.40.E. $33.40.
Business
1 answer:
andriy [413]3 years ago
8 0

Answer:

Variable cost per unit= $8.4

Explanation:

<u>First, we need to calculate the total cost for each level of machine hours:</u>

Low activity level:

Total cost= 22,000*33.4= $734,800

High activity level:

Total cost= 25,000*30.4= $760,000

<u>Now, we can determine the variable and fixed costs:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (760,000 - 734,800) / (25,000 - 22,000)

Variable cost per unit= $8.4

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 760,000 - (8.4*25,000)

Fixed costs= $550,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 734,800 - (8.4*22,000)

Fixed costs= $550,000

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A minimum wage is an example of a price floor or minimum price that must be paid. If effective, such a price floor would be ____
valkas [14]

Answer:

If effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.

Explanation:

A price floor can be described as a price control in which the minimum price to be charged for goods and services is imposed by a government or a group.

For a price floor to be effective and binding, it has to be set above the market or equilibrium price. This is because a price floor will neither be effective nor nonbinding when it set below the equilibrium price.

Any price above the equilibrium or market price creates or leads to excess supply. Excess supply is a situation whereby quantiy of commodity supplied is more than the quantity demanded of the commodity.

Based on the above explanation, if effective, such a price floor would be <u>above</u> the market price and would lead to a <u>excess supply</u>.

3 0
3 years ago
Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distributi
loris [4]

Answer:

Beaver's total taxable income and federal income text paid as result of distribution is $500,000 and $105,000 respectively.

Explanation:

The computation of the taxable income and the federal income is shown below:

Taxable income = Taxable income + loss

                           = $500,000 + $0

                           = $500,000

Since the fair value is $20,000 is less than the mortgage on land i.e $25,000 so it would be a loss of $5,000 which would not be considered so we put the value zero.

And, the federal income equal to

= Taxable income × income tax rate

= $500,000 × 21%

= $105,000

4 0
3 years ago
Which NIMS Management Characteristic involves using standardized names and definitions for major organizational functions and un
mylen [45]

Answer:

The correct answer is c) Common Terminology

Explanation:

NIMS establishes a common terminology to work cooperatively with other organizations in some emergency scenarios, this is used to avoid confusion.

The common terminology usually is implemented in Organizational Functions (named by standard names), Resource Descriptions (named by capabilities) and Incident Facilities (common terms for clarity in an incident)

8 0
2 years ago
Complete the following sentence as it
stira [4]
B. secrecy; communication
4 0
3 years ago
Determine the future value of the following single amounts (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
slavikrds [6]

Answer:

1. $38,435.37

2. $67,091.09

3. $126,985.63

4.$94,037.04

Explanation:

The formula for calculating future value :

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

1. $17,000 ( 1 + 0.06)^14 = $38,435.37

2. $26,000(1 + 0.09)^11 = $67,091.09

3. $38,000(1 + 0.09)^14 = $126,985.63

4. $59,000 (1+0.06)^8 = $94,037.04

I hope my answer helps you

6 0
3 years ago
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