Answer:
Explanation:
Budgeted direct labor hour is defined as the average time it will take to complete a budgeted production . This is calculated by multiplying the budgeted production by the labor hour per unit of production.
Workings
Total overhead budget = 807,500
Night light budgeted production = 60,000
Desk lamp budgeted production= 80,000
Night lamp production = 1/2 hour / unit
Desk lamp production = 2 hour / unit
Night light budgeted hour = 60000*1/5 = 30,000 hours
Desk lamp budgeted hour = 80,000 * 2 = 160,000 hours
Total number of budgeted direct labor hours = 190,000 hours
Answer:
Explanation:
Production in itself is the conversion of inputs to outputs.
Factors of production are the resources that make this conversion of input to outputs possible. These include;
Labour- is the physical and mental effort contributed. It is rewarded by wages or salaries.
Land - includes the soil itself, natural trees, raw materials like minerals and oil found underneath. Its reward is rent.
Capital - includes machinery, chemicals and equipment (tractors, robots). Its reward is interest.
Entrepreneurship- is the drive to develop an idea, take risks and use the other three factors of production to produce goods or services. Its reward is profit.
Answer:
Ending WIP= $13,500
Explanation:
<u>First, we need to calculate the factory overhead:</u>
Factory overhead= 25,000*0.75= $18,750
<u>Now, the ending WIP inventory:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
68,250 = 11,000 + 27,000 + 25,000 + 18,750 - Ending WIP
Ending WIP= $13,500
Answer:
C. Demand for the existing firms' output will become more inelastic