Answer:
correct option is A. $331,000
Explanation:
given data
Direct materials = $86,000
Direct labor = 130,000
Variable factory overhead = 57,000
Fixed factory overhead = 135,000
Total costs = $408,000
avoidable = $58,000
to find out
highest price that McMurphy should be willing to pay for 12,000 units of the part is
solution
we get here highest price that McMurphy should be willing to pay for 12,000 units of the part that is express as
highest price = Direct material + Direct Labor + variable factory overhead + avoidable fixed overhead .....................1
put here value we get
highest price = $86000 + $130000 + $57000 + $58000
highest price = $331,000
so correct option is A. $331,000
Answer:
920 (Unfavorable)
Explanation:
Labor rate variance = Actual direct labor hours (Actual direct labor rate - Standard direct labor rate)
Labor rate variance = 2,300 * ($21.7 - $21.3)
Labor rate variance = 2,300 * 0.4
Labor rate variance = 920 (Unfavorable)
It will help organize the flow of ideas
Answer:
a reduced availability of these badly needed products.
Explanation:
Price control is when the government imposed a price regime that is aimed at protecting the consumer from over pricing by sellers. When price ceilings are imposed there is a maximum price the the seller cannot go above in pricing of products.
In this case if ocal governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. It will result in reduced availability of the products to these areas.
Sellers tend to reduce amount supplied, due to scarcity consumers will have to buy at black market prices that are higher.
