Answer:
$11,000 under applied
Explanation:
To compute the under or over applied overhead, we need to find out the predetermined overhead rate
Predetermined overhead rate = Total estimated manufacturing overhead ÷ Estimated machine hours
= $4,100,000 ÷ 500,000
= $8.2
Then, the overhead applied is;
= Actual machine hours × Predetermined overhead rate
= 495,000 × $8.2
= $4,059,000
Now, the under applied or over applied overhead is
= Actual annual overhead cost - Applied overhead
= $4,070,000 - $4,059,000
= $11,000 under applied
Answer:
Make no change in Y and Z.
Explanation:
It was assumed that consumer purchases the combination of two goods, Y and Z.
For maximizing the utility of the consumer, the ratio of marginal utilities must be equal to the price ratio of the products.
We can see that the ratio of marginal utilities is equal to the price ratio of the products. Hence, the consumer should not make any changes to the combination of products.
Answer:
The optimal stocking level is 45 muffins.
Explanation:
First we have to calculate the Overage cost Co = Purchase price - Salvage value = $0.2 - 0 = $0.2
Then the Underage cost Cu = Selling price - Purchase price =$0.80 - $0.2 = $0.60
Service level = Cu / (Cu + Co) = $0.60/($0.60+$0.2) = $0.75
Hence, optimal stocking level = Minimum demand + Service level *(Maximum demand - Minimum demand)
optimal stocking level = 30 + 0.75*(50-30) = 45
The optimal stocking level is 45 muffins.
Optimal stocking level = 68.75 Muffins
