Answer:
<u>VAN </u>has an absolute advantage in the production of barley, and <u>VAN</u> has an absolute advantage in the production of alfalfa.
Van's opportunity cost of producing 1 bushel of alfalfa is <u>0.2</u> bushels of barley whereas Rina's opportunity cost of producing 1 bushel of alfalfa is <u>0.25</u> bushels of barley.
Because Van has a <u>HIGHER</u> opportunity cost of producing alfalfa than Amy, <u>AMY</u> has a comparative advantage in the production of alfalfa, and <u>VAN</u> has a comparative advantage in the production of barley
Explanation:
Barley Alfalfa
Bushels per acre Bushels per acre
Van 40 8
Amy 28 7
Van's opportunity cost of producing barley = 8 / 40 = 0.2 bushels of alfalfa
Van's opportunity cost of producing alfalfa = 40/ 8 = 5 bushels of barley
Amy's opportunity cost of producing barley = 7 / 28 = 0.25 bushels of alfalfa
Amy's opportunity cost of producing alfalfa = 28 / 7 = 4 bushels of barley
Opportunity costs are additional costs or any benefits lost from choosing one activity or investment over another alternative.
Answer: See explanation
Explanation:
a. The actual direct labor rate per hour will be:
= Standard direct labor rate per hour - favorable labor rate variance
= $11 - $0.40
= $10.60
Then, the actual direct labor hours worked during July will be calculated as:
= (5910 × $11) - $350 / $10.6
= ($65010 - $350) / $10.6
= $64660 / $10.6
= 6100
b. The direct labor rate variance will be:
= (Actual rate per hour - standard rate per hour) × Actual labor hours
= (10.60 - 11.00) × 6100
= 2440F
Direct labor efficiency variance will be:
= (6900 - 5910) × $11
= 2090U
The direct labor rate variance that was favorable shows that the manager paid a lower rate to its staffs while the direct labor efficiency variance that was unfavorable implies that the manager used less efficient workers. This indicates that a trade-off took place.
= (6900
Company increase money . it's taxes 40 + 40 = 80
Answer:
Debit to interest expenses for $259
Explanation:
Entry of Payment
Date Account Title and Explanation Debit Credit
Mar 31. Note Payable $51,873
Interest expenses $259
($51,873 * 6% * 30/360)
Cash $52,132
(TO record payment)
