Answer:
C) i and ii
Explanation:
Price elastic of demand (PED) of kerosene = 2.2% / 10% = 0.22 price inelastic demand
When two products are substitutes, an increase in the price of one of the products will not only reduce the quantity demanded of that product, but it will also increase the quantity demanded of its substitute products. In this case, an increase in the price of electricity, increases the quantity demanded for kerosene, which means that they are both substitute products.
Answer:
The amount of amortized organizational expenses for the year 2013 would be $6,333 ( approximately )
Explanation:
First of all the important point here to note is that while calculating the amortized organizational cost we only include the legal fee for drafting the corporate charter and not the commission paid to underwriter or cost incurred while selling the stock.
In the legal fee for corporate charter too there are limitations , as only $50,000 are allowed as total expenditure to be amortized over a period of 15 years or 180 months. Where for the first year the limitation allowed is $5000 and rest of the amount would be amortized over 180 months.
So $45,000 - $5000 = $40,000
$40000 / 180 = $222.22
Now multiplying this by 6 months as the operations of company began on 1 July , 2013,
$222.22 x 6 = $1333.32
Now adding this amount to $5000 will give us the total amortized organizational expense,
$5000 + $1333.32 = $6,333.32
= $6,333 ( approximately )
Answer:
b) environmental scanning.
Explanation:
Environmental scanning -
It is the study that helps the organization to identify the threats and opportunities in the ecosystem to form new objectives and strategies in order to improve the performance in the industries .
It refers to the utilization and collection of the information regarding the trends , relationships and events of an industry and the usage of the knowledge for creating the objectives and strategies to future .
This process require the person working for the organization to search for important lessons m threat and weakness and opportunities .
Hence , from the data of the question , the process is called environmental scanning .
Answer:
Estimated manufacturing overhead rate= $15 per direct labor hour
Explanation:
Giving the following information:
Overhead is allocated to each job based on the number of direct labor hours spent on that job.
The estimated overhead= $61,500.
Estimated direct labor hours= 4,100
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 61,500/4,100= $15 per direct tlabor hour
Answer:
<u>DM variances:</u>
Price 2650
Quantity -4,800
<u>Labor Variances:</u>
Rate:-2,000
Efficiency 1400
Explanation:
<u>DM variances:</u>
Price
(std - actual) x actual quantity
(2.4 - 2.2) x 13,250 = 2,650
Quantity
(standard quantity - actual quantity) x std price
(7.5x1,500 - 13,250) x 2.4 = -4,800
<u>Labor Variances:</u>
Rate:
(std rate - actual rate) x actual hours
(7 - 9) x 1,000 = -2,000
actual rate = actual cost/actual hours = 9,000/1,000 = 9
Efficiency
(std hours - actual hours) x std rate
(1,500 x 0.8 - 1,000) x 7 = 1400
