The correct answer is choice b.
Managerial Economics deals specifically with the application of economic concepts, theories, tools, and methodologies in order to solve practical problems in a business. This definition aligns with choice b, which is to provide logic and methodology to find solutions to business problems.
Answer:
Predetermined manufacturing overhead rate= $29.59 per direct labor hour
Explanation:
Giving the following information:
Total direct labor-hours 15,755
Total overhead:
Labor-related DLHs= $172,482
Product testing tests= $68,909
General factory MHs= $224,825
Total= $466,216
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 466,216/15,755
Predetermined manufacturing overhead rate= $29.59 per direct labor hour
Answer:$27.78
Explanation:
Expected value of debt after one year = (40* .60)+(15*.40)
= 24 + 6
=$ 30
Current value of debt = Value at 1year / (1+r)^n
= 30/ (1+.08)^1
= 30 / 1.08
=$ 27.78
Answer 1) Option B) Shift to the right.
Explanation : If the amount of land available to the company increases, the PPC will shift to the right. As the graph indicates, the PPC will grow by shifting on right side as the company is acquiring more land for building purpose.
Answer 2) Option C) Remain Unchanged.
Explanation : The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in.
In this case, the PPC will remain unchanged. When the company realizes that no construction can be done on the portion of land because of its hollowness the PPC will remain to be undisturbed.
