Answer:
D. the direct costs and the indirect opportunity cost of your time required to shop.
Explanation:
Opportunity cost by definition or formula, is the return on an alternative foregone less than the return on your chosen option. Considering opportunity costs in decision making or investment can lead to more profitable decision-making.
Hence in arriving at an option or optimal solution in relation t the decision on where to buy the couch, the direct costs of the price of the couch and transportation to our appartment will be considered in conjuction with the oppotunity costs
Answer:
The given statement is false.
Explanation:
First we have to compute the total cost which is attached to a product which is shown below:
= Direct material cost + Direct labor cost + variable overhead cost
= $2 + $4 + $1.5
= $7.5 per unit.
Since the total cost comes $7.5 per unit and the special order sold at $10 per unit which shows a difference of $2.5 per unit. By taking a difference of $2.5 per unit, the company can earn more profits than earlier.
And, the selling price for special order is high than the total cost which increase the profitability of a company.
The other cost is irrelevant as the calculation part is not depended on these cost like fixed cost, production capacity, etc.
Thus, the given statement is false.
Answer:
c) $10 per pound
Explanation:
Differential cost is the cost difference of one plan when compared to another. it is the difference in cost between 2 alternative decision.
The product x has a cost of $ 15 per pound . The company later modified product X to produce product Y. The additional cost for product Y after modification of X is $ 10. The cost of producing product Y is 15 + 10 = $ 25.
The differential cost of producing product Y is the difference of the cost of producing product Y and product X. it can be computed as 25 - 15 = $ 10 per pound .
Answer:
C. $148,350
Explanation:
Actual Overhead $143,350
Less: Underapplied Overhead <u>$18,220</u>
Total Overhead applied $125,130
Actual Direct labor hours = 9700 hours
Overhead rate = Total Overhead applied / Actual Direct labor hours
Overhead rate = $125,130 / 9700 hours
Overhead rate = $12.90 per hour
Estimated Direct Labor hours = 11,500 hours
Estimated Manufacturing Overhead at the beginning = Estimated Direct Labor hours * Overhead rate
Estimated Manufacturing Overhead at the beginning = 11,500 hours * $12.90 per hour
Estimated Manufacturing Overhead at the beginning = $148,350