Answer:
The correct answer is letter "B": increase; decrease.
Explanation:
Producer surplus is the difference between the price at which the manufacturer actually sells a product and the minimum price the manufacturer would have accepted. The surplus results from the producer being able to sell their goods at a market price higher than their minimum price.
So, <em>if producer A manufactures a product that is being sold at a higher price level abroad, its producer surplus will </em><u><em>increase</em></u><em>. However, the overall economic surplus with trade will </em><u><em>decrease</em></u><em> since the introduction to producer A to the market will allow consumers to purchase the goods at a lower price</em>.
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Marginal cost of capital (MCC) schedule is a graph that relates the firm's weighted average cost of each unit of capital to the total amount of new capital raised.
Answer:
Direct labor time (efficiency) variance= $4,375 unfavorable
Explanation:
Giving the following information:
Standard
Direct labor...........................................1.4 hours at $12.50 per hour
Direct labor-hours worked: 5,600 hours for $67,200.
units produced= 3,750
To calculate the direct labor efficiency variance, we need to use the following formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
standard quantity= 1.4*3,750= 5,250
Direct labor time (efficiency) variance= (5,250 - 5,600)*12.5
Direct labor time (efficiency) variance= $4,375 unfavorable
Answer:
Equivalent units of production for materials = 5960
Explanation:
Given:
Units transferred out = 5800
Units in ending inventory = 400
%age of completion for conversion = 40%
To calculate the equivalent units of production by using the formula:
Equivalent units of production for materials = units transferred out + ( units in ending inventory × %age of completion for conversion)
= 5800 + ( 400 × 40/100)
= 5800 + ( 400 × 0.4)
= 5800 + 160
= 5960
