Answer:
The correct answer is C.
Explanation:
Giving the following information:
Barrington Bears has developed the following sales forecasts for January 500 units.
BB has 80 bears on hand on Dec. 31. The normal ending inventory policy is to hold 20% of next month’s sales.
Direct labor is paid $18 per hour. Each bear takes 40 minutes to hand-finish. Variable overheads total $21 per direct labor hour. Fixed overheads amount to $25,000 per month.
First, we need to calculate the production for January.
Sales= 500 units
Ending inventory= (600*0.2)= 120 units
Beginning inventory= 80 (-)
Total= 540 units
Conversion costs= direct labor + manufacturing overhead
Direct labor= [(40/60)*540]*$18= $6,480
Variable overhead= 21*360 hours= $7,560
Fixed overhead= $25,000
Total conversion costs= $39,040
Answer:
a. $28
b. $19
c. 800 watches
Explanation:
The equation is
p = D(q) = 28 - 2.25
The equation of the demand would be
P = 28 - 2.25q
a. The price would be
= $28 - 2.25 × 0
= $28 - 0
= $28
b. The price would be
= $28 - 2.25 × 4
= $28 - 9
= $19
The quantity demanded is come in hundreds so we take only 4
c. The quantity woul dbe
$10 = $28 - 2.25q
$10 - $28 = -$2.25q
-$18 = -$2.25q
So q would be
= 800 watches
Answer: a.may increase while conversion costs decrease because the two are separately calculated and depend on separate costs.
Explanation:
When the cost of production report is being used to analyze change in direct materials cost per equivalent unit when compared to the conversion cost per equivalent unit, we should note that an investigation may end up showing that the fluctuation in the the direct materials costs which then brings about an increase or a decrease.
Therefore, the correct option is A "may increase while conversion costs decrease because the two are separately calculated and depend on separate costs".
Answer:
the benefit to his grades from studying for an hour
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
In this scenario, Gomer decided to spend an hour playing basketball rather than studying his books. Thus, his opportunity cost is the benefit to his grades from studying for an hour.
This ultimately implies that, if he had spend the time he used in playing basketball to study, it would have added value to his grades.
