Answer:
a value exchange
Explanation: Hope this help:)
Answer: B. TC = 50 + 20Q
Explanation:
A Natural Monopoly is generally associated with a firm that has very high initial fixed costs. These costs are generally related to the use of high scale technology or machinery to operate effectively.
Some examples include, gas pipelines, electricity grids, and the like.
They act as both a deterrent for companies to join the market as well as to exit.
Option B shows the typical Total Cost function of a Natural Monopoly and reflects the high initial costs as well.
Answer:
Depreciation Expense = $16900
Explanation:
Using the units of production method. I will get the value of depreciation expense for the year 2. The units of production method calculate the value of depreciation using the formula is given below.
Depreciation expense = (Cost - Salvage value) / Total Units of Products x Units of production in second year.
Depreciation expense = ($87000 - $7000) / 400000 x 84500 = $16900
Wickland company will charge depreciation expense of $16900 using the Units of production method as during the second year of Wickland company depreciation expense is $16900.
Answer:
1) The fixed overhead production-volume variance is $14400 favourable.
2) The fixed overhead spending variance is $9000 unfavourable.
Explanation:
1)
Fixed overhead production volume variance
= amount applied * amount budgeted
= 144000/30000
= 4.80 per unit
= 4.80*33000 - 144000
= $14400 favourable
Therefore, The fixed overhead production-volume variance is $14400 favourable.
2)
fixed overhead spending variance
= actual overhead - budgeted overhead
= 153000 - 144000
= $9000 unfavourable
Therefore, The fixed overhead spending variance is $9000 unfavourable.
