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irina1246 [14]
3 years ago
5

During its first year of operations, Dudu Company paid $50,000 for direct materials and $36,000 in wages for production workers.

Lease payments and utilities on the production facilities amounted to $14,000. General, selling, and administrative expenses were $16,000. The company produced 5,000 units and sold 4,000 units for $30.00 a unit. The average product cost per unit is which of the following amounts?
a. $16.00
b. $18.40
c. $25.00
d. $20.00
Business
1 answer:
pentagon [3]3 years ago
8 0

Answer:

Average production cost= $20

Explanation:

<u>The product cost is the sum of direct material, direct labor, and allocated overhead. First, we need to calculate the total production costs:</u>

Total production costs= 50,000 + 36,000 + 14,000= $100,000

<u>Now, the average production cost:</u>

<u />

Average production cost= total costs / units produced

Average production cost= 100,000 / 5,000

Average production cost= $20

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6 0
1 year ago
Bismith Company reported: Actual fixed overhead Fixed manufacturing overhead spending variance Fixed manufacturing production-vo
max2010maxim [7]

Answer:

D. Debit fixed manufacturing overhead spending variance for $40,000

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5 0
3 years ago
If the Fed increases the money supply and as a result, households and firms buy more short-term financial assets, the prices of
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Answer:

rise, fall

Explanation:

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Money supply is measured as it influences various activities taking place all around us in the economy.

A larger money supply leads to <u>fall</u> in interest rates. As a result, the prices of those short-term financial assets will <u>rises.</u> Conversely, smaller money supplies leads to rise in interest rates which in turn leads to fall in prices of the short-term financial assets.

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4. When the actual price of a good is above its equilibrium market price, competition
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Answer:

C.

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Answer:

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