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Natali [406]
2 years ago
9

Which term describes a situation where the quantity of output rises, but the average cost of production falls?.

Business
1 answer:
elixir [45]2 years ago
5 0
Answer: Economies of scale
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Bill is the owner of a house with two identical apartments. He resides in one apartment and rents the other apartment to a tenan
Mnenie [13.5K]

Answer:

B. $2,600

Explanation:

The computation of the net rental income is shown below:

= Monthly rental payments × total number of months in a year - (utilities + maintenance & repairs  + insurance) × percentage - depreciation expense

= $550 × 12 months - ($3,600 + $900 + $500) × 50% - $1,500

= $6,600 - $2,500 - $1,500

= $2,600

Since only one apartment is on rent so we considered the expenses of the building at 50% not full value and the same is applied above

5 0
2 years ago
XYZ CORP HAS THE FOLLOWING DATA: BUDGETED OVERHEAD $168,000 BUDGETED MACHINE HOURS (DRIVER) 35,000 ACTUAL MACHINE HOURS: JOB 17
SVETLANKA909090 [29]

Answer:

The Actual overhead in finished goods is $ 113,400

Explanation:

In order to calculate the ACTUAL OVERHEAD IN FINISHED GOODS we would have to use the following formula:

Actual overhead in finished goods= overheads allocated to job 18 and 19 + underapplied overheads allocated finished inventory

Actual overhead in finished goods=(($9,750+$13,650)/($11,700+$9,750+$13,650+$3,900)*$168,000) + ($23,400/$39,000* ($189,000 - ($39,000*$168,000/$35,000))

= $112,320 + $1,080

= $ 113,400

The Actual overhead in finished goods is $ 113,400

8 0
3 years ago
Can someone help me please i will give you extra points the question is above
sveticcg [70]
A. The percentage of the labor force that is unemployed
7 0
3 years ago
Read 2 more answers
During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,
bulgar [2K]

Answer:

Western Creations Company

1. Income Statements for July and August, under absorption costing:

                                               July                   August

Sales Revenue                $4,320,000.00    $4,320,000.00

Cost of goods sold            3,240,000.00      2,649,600.00

Gross profit                      $1,080,000.00     $1,670,400.00

Total selling & admin. exp. $169,000.00       $169,000.00

Net Income                          $911,000.00     $1,501,400.00

2. Income Statements for July and August, using variable costing:

                                                   July                   August

Sales Revenue                    $4,320,000.00    $4,320,000.00

Variable cost of goods sold  3,081,600.00       2,491,200.00

Contribution margin            $1,238,400.00     $1,828,800.00

Fixed expenses:

Total fixed costs                      345,000.00         345,000.00

Net income                           $893,400.00      $1,483,800.00

3a. The reason for the differences in the amount of the income from operations in in (1) and (2) for July is the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

3b. The reason for the differences in the amount of the income from operations in (1) and (2) for August is also the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

Explanation:

a) Data and Calculations:

Number of hats produced = 80,000

Number of hats sold = 72,000

Ending inventory = 8,000

1 Sales $4,320,000.00

2 Manufacturing costs:             July                    August

3 Direct materials                  $1,600,000.00    $1,280,000.00

4 Direct labor                           1,440,000.00       1,152,000.00

5 Variable manufacturing cost 240,000.00         192,000.00

6 Fixed manufacturing cost      320,000.00        320,000.00

Total manufacturing costs   $3,600,000.00  $2,944,000.00

Under absorption costing:

Unit cost = $45 ($3,600,000/80,000)             $36.80 ($2,944,000/80,000)

Cost of goods sold = $3,240,000 ($45*72,000) $2,649,600 (36.8*72,000)

Ending Inventory =         360,000 ($45*8,000)         294,400 ($36.8*8,000)

7 Selling and administrative expenses:

8 Variable                                 $144,000.00       $144,000.00

9 Fixed                                         25,000.00          25,000.00

Total selling & admin.  exp.     $169,000.00      $169,000.00

Under variable costing:

2 Manufacturing costs:

3 Direct materials                    $1,600,000.00     $1,280,000.00

4 Direct labor                             1,440,000.00        1,152,000.00

5 Variable manufacturing cost   240,000.00          192,000.00

8 Variable selling & admin cost   144,000.00          144,000.00

Total variable costs =             $3,424,000.00    $2,768,000.00

Unit variable cost = $42.80 ($3,424,000/80,000)     $34.60

Cost of goods sold = $3,081,600 ($42.80 * 72,000)  $2,491,200

Ending Inventory =         342,400 ($42.80 * 8,000)         276,800

6 Fixed manufacturing cost    $320,000.00            $320,000.00

9 Fixed selling & admin. cost      25,000.00                25,000.00

Total fixed costs =                   $345,000.00            $345,000.00

7 0
3 years ago
Rubium Micro Devices currently manufactures a subassembly for its main product. The costs per unit are as​ follows: Direct mater
MrRa [10]

Answer:D.None of the option is correct, the correct answer is Buy; savings=$203,000

Explanation:

The firm will Incurred the total fixed overhead it decides to make.

The total cost of making 6000 units is $163*6000=$978,000

The total cost of buying is $144*6000= $864,000 and when we deduct $89,000 to be saved from fixed overhead by buying we have a total cost of( $864,000-$89,00) =775,000.

This invariably means the company will save ($978,000-$775,000) which is equal to= $203,000 by buying.

6 0
3 years ago
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