Answer: One thing that could be done to devalue a currency is to issue more currency into their markets.
Explanation:
Any asset or goods can be based on how scarce the product or assets it. The authorities in the foreign markets could make more currency and this will devalue the currency because the market will be saturated. The money/currency will still be at the same value as before but the purchasing power will be reduced since there is an added supply of money in the economy.
Answer:
$25 per unit
Explanation:
Data provided in the question
Selling price per unit = $25
Fixed cost per unit = $8
Variable cost per unit = $10
Based on the above information, the price that division A should charged from Division B is equal to the selling price per unit i.e $25 because Division A currently sells and operates in a competitive market so it should be same for division B
Answer:
See below
Explanation:
First, we need to get the predetermined rate
Predetermined rate = Cost of manufacturing overhead / Cost driver
= $1,800,000/60,000
= $30
We will now calculate the application.
Actual labor hours × rate
= 61,500 × $30
= $1,845,000
We will now compare actual with overhead cost
= Applied Overhead cost - Actual manufacturing overhead
= $1,845,000 - $1,810,000
= $35,000
The above is an over application of overhead cost because the cost applied exceed the actual cost.
