Answer:
b. maximum amount of output that can be produced given the labor force, capital stock, and technology.
Explanation:
GDP refers to the gross domestic product which reflects the finalized value of the goods and services produced domestically
On the other side, the potential GDP refers to the maximum level of output that can be produced by considering the labor force, capital stock, technology by taking the constant inflation rate
Therefore option b is correct
Answer:
Allocated overhead= $43,180
Explanation:
Giving the following information:
Cost of direct materials used $42,600
Cost of goods manufactured $124,200
Cost of direct labor ($30 per hour)= $76,200
Manufacturing overhead cost is allocated at the rate of $17 per direct labor hour.
Allocated overhead= predetermined overhead rate* actual allocation base
Allocated overhead= 17* (76200/30)= $43,180
Answer:
Product X Product Y
Contribution Margin per $10 $12
Production Hour
Explanation:
The hours used in the product X and product Y is computed as:
Product X Product Y
Units produce in per hour 2 3
Hours used per units 1/2 = 0.5 1/3 = 0.333
The contribution margin per production hours is calculated as, divide the contribution margin by hours as shown below:
Product X Product Y
Contribution margin $5 $4
Hours used 0.5 0.333
Contribution margin per 5/0.5 = 10 4/0.333 = 12
Production Hour
Answer:
Therefore retained earnings at December 31 is $273,000
Explanation:
Items that increase retail earnings include:
Beginning balance
Net income
Cash dividends
Beginning balance as at January 1,2020 = $ 230,000
Net income = $ 133,000
Cash dividends = ($90,000)
Therefore, retained earnings = Beginning balance + Net income -Cash dividends
= $230,000 + $133,000 - $90,000
= $ 273,000
