Answer:
The amount that should be allocated to the oven is $771.12.
The amount that should be allocated to the installation services is $102.75.
The amount that should be allocated to the maintenance services is $166.13.
Explanation:
Total price=Standard price oven +Standard price Installation +Standard price
Maintenance
=$803+$107+$173
=$1,083
Price allocated=Stand alone price of oven
/ Total price ×Price paid by customer
= $803
/ $1,083 ×$1,040
=$771.12
Price allocated=
Stand alone price of installation service/
Total price
×Price paid by customer
=
$107
/ $1,083 ×$1,040
=$102.75
Price allocated= Stand alone price of maintenance service /Total price
×Price paid by customer
= $173
/$1,083 ×$1,040
=$166.13
Answer:
All of the answers are correct.
Explanation:
At the beginning of the accounting period a pre-determined overhead is computed by dividing the estimated overhead production by the estimated basis of operations. The default overhead rate is then applied to manufacturing, so that the standard cost for a product may be calculated
The purpose of using pretermined overhead rates are
Delays in product costing can be avoided
Variation in cost assignment due to seasonality can be prevented
Variation in cost assignment due to short-term variations in volume can be prevented
The Use of predetermined overhead rates serves all the above purposes
Hence, all answers are correct.
Answer:
Larry's insurance policy cover = $729,000
Amount pay by Larry = $243,000
Explanation:
Given:
Number of insurance = 3
Each injured person awarded = $243,000
Find:
Larry's insurance policy cover
Amount pay by Larry
Computation:
Larry's insurance policy cover = Number of insurance × Each injured person awarded
Larry's insurance policy cover = $243,000 × 3
Larry's insurance policy cover = $729,000
Amount pay by Larry = $243,000 (For fourth person)
Answer: Option (D) is correct.
Explanation:
The economic efficiency is achieved at a point where demand curve and supply curve intersects each other. This point is known as market equilibrium. The area under the demand curve and above the equilibrium price level is known as consumer surplus.
The area above the supply curve and under the equilibrium price level is known as producer surplus.
Hence, the combine area of consumer surplus and producer surplus have to maximized to have a economic efficiency in an economy.
