Answer:
b. Cost of Goods Sold, Work-in-Process Inventory, and Finished-Goods Inventory.
Explanation:
Whenever manufacturing overheads are prorated and under-applied or over-applied, then they are charged to inventory or cost which includes overheads as part of it.
As for instance, raw material inventory do not include any overheads, it is just the purchase price of inventory, as no work is performed on it.
Cost of goods sold, includes all the cost incurred to sale the good, from acquiring raw material to converting finished goods, and then adding the sales expense the goods are sold.
Finished goods include every material and overhead to convert the item into finished state and usable state.
Work in process is half way completed, or the percentage prescribed and includes raw material, includes overheads, but the product is somewhere more than raw inventory and less than finished good.
Therefore, correct option is:
b.
Answer:
$6,000
Explanation:
The net operating income will increase by $6,000;
$70,000*30%-$15,000=$6,000
As the CM ratio is 30% and $15,000 are fixed expenses,net result will be increase in net operating income.
Answer:
The answer to both a and b is in the explanation below
Explanation:
a) The increase in wage can either decrease or increase the hours worked. This is became an increase in wage has both substitution effect and income effect that work in different directions. Substitution effect An increase in wage increases the opportunity cost of leisure, thereby making the worker increase number of hours worked. Income effect The increase in wage also makers the worker richer, thereby making the worker decrease number of hours worked.
Since no information about worker's preferences is given, we do not Imow which effect will dominate the other effect and, therefore, we do not know what the net impact of the increase in wage will be.
b) The bonus will only have income effect. The bonus will make the workers richer, thereby making the worker decrease number of hours worked.
If in part a), the substitution effect and income effect are equal in magnitude, then there will be no change in the number of hours worked. The number of hours worked will remain the same at 2000 hours. Since the employer would be paying $5 extra on each hour worked, the cost to the employer of increase in wage would be $10,000 (=2000 x $5), which is the same as the bonus in part b).
Answer:
D, decline in total surplus that results from a tax.
Explanation:
Dead-weight loss is also known as excess burden. It is a situation where in there is a loss of economic sufficiency as a result of tax.
This economic sufficiency is when the supply of goods and services aren't met. That is, there is no market equilibrium between demand and supply. Taxes, subsidies, price rise or fall can be the reason for dead-weight loss as it causes the imbalance of demand and supply of goods or services to the consumers through price manipulations.
To calculate dead-weight loss, change in price as well as change in quantity demanded are important factors to consider.
Cheers.
Answer:
26.42
Explanation:
A firm has an EPS of $2.08
The benchmark PE is 12.7
The growth rate is 3.8 percent
Therefore the estimated current stock price can be calculated as follows
= 2.08×12.7
= 26.42
