Answer:
See below
Explanation:
Given the above information, we can compute variable manufacturing overhead efficiency variance to be;
= (SA - AQ) × SR
Where
Standard quantity = SQ = 19,000
Actual Quantity = AQ = 7,600
Standard Rate = SR = $1.9
Variable manufacturing overhead efficiency variance
= [(19,000 × 0.3) - 7,600] × $1.9
= (5,700 - 7,600) × $1.9
= $3,610 U
Answer:
Firm should not shut down, as it is able to cover its Average Variable Cost
Explanation:
Perfect Competition firms in Short Run : The firms produce even if their average revenue (price) < their average total costs (AC). They continue production until Average variable cost (AVC) ≥ per unit price (P) i.e average revenue (AR). This is called Shut Down Point. P lower beyond AVC implies that firm won't continue even in short run.
Given : Variable Cost (VC) = 500 ; Revenue (R) = 510
Average Variable Costs & Average Revenue are variable costs & revenue, per unit quantity. AVC = VC / Q ; AR (P) = R / Q
R i.e 510 > VC i.e 500
So, R/ Q i.e AR is also > VC / Q i.e AVC
Since AVC > AR (P), firm should not shut down
Answer:
$78,000
Explanation:
Total cost of producing 2,000 tires:
= [(Direct materials + Direct manufacturing labor + Variable manufacturing overhead) × 2,000 units] + Fixed cost
= [($20 + $3 + $6) × 2,000 units] + ($10 × 2,000 units)
= $58,000 + $20,000
= $78,000
Therefore, the total cost of producing 2,000 tires is $78,000.
Answer:
take notes, research that information
Joint ventures have access to local partner's knowledge and shared development costs and risks are advantages in this foreign market entry mode. A joint venture often gives companies access to new markets. Two or more companies come together to benefit themselves and stay their own company.
