Gina Production Company uses a standard costing system. The following information pertains to 2009: Actual factory overhead costs ($16,500 is fixed) $40,125 Actual direct labor costs (11,250 hours) $131,625 Standard direct labor for 5,500 units: Standard hours allowed 11,000 hours Labor rate $12.00 The factory overhead rate is based on an activity level of…
Read MoreIf actual fixed manufacturing overhead was $54,000 and there was a $1,300 unfavorable spending variance and a $1,000 unfavorable volume variance, budgeted fixed manufacturing overhead must have been a. $56,300. b. $50,300. c. $53,000. d. $52,700. ANS: D CALCULATIONS: $54,000 – $1,300 = $52,700 Fixed manufacturing overhead was budgeted at $200,000, and 25,000 direct…
Read MoreBread Company has developed the following standards for one of its products. Direct materials: 10 pounds ´ $3 per pound Direct labor: 2.5 hours ´ $8 per hour Variable manufacturing overhead: 2.5 hours ´ $2 per hour The following activity occurred during the month of June: Materials purchased: 125,000 pounds at…
Read MoreEnvironmental issues regarding oil: Oil spills are major environmental problem. As oil is liquid it can easily spread through the breakage of or leakage of oil transporting pipes and contaminates ground water, surface water. Oil on the ocean surface can coat the aquatic animals like fish, aquatic birds, and reptiles. As oil is toxic it…
Read MoreE 11-1 On January 1, 2013, the Excel Delivery Company purchased a delivery van for $33,000. At the end of its five-year service life, it is estimated that the van will be worth $3,000. During the five-year period, the company expects to drive the van 100,000 miles. 1 Straight line. 2 Sum-of-the-years’ digits. 3 Double-declining…
Read MoreA monopolistic firm operates in the U.S. No trade is possible between the NY market and the LA market. The firm has calculated the demand functions for each market as follows: NY Market p = 150 – Q LA Market p = 50 – Q The company estimates its total cost function to be: TC…
Read MoreQUESTION 1. (Nash Equilibrium in Weakly Dominated Strategies) Part I. Present an example of a game with a pure-strategy Nash equilibrium (call it s*) in which eachplayer chooses a weakly dominated strategy. (Two players with two strategies apiece will suffice). Part II. Present an example of a game with two pure-strategy Nash equilibria (call them…
Read More1. Are the effects of an increase in aggregate demand in the aggregate demand and aggregate supply model consistent with the Phillips curve? Explain. 2. Explain the connection between the vertical long-run aggregate supply curve and the vertical long-run Phillips curve. 3. Why and in what way are fiscal policy lags different from monetary policy…
Read MoreA customer is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help this individual make a decision? The decision must be made after the following things are known: Amount of funds required to buy the car with down payment Cost of the…
Read More(Supply, demand, elasticity and consumer spending). Use the tobacco elasticity data given below to answers a), b) and c). Own price elasticity of demand = -0.6 Income elasticity of demand = +0.3 Cross price elasticity of demand with respect to food prices = -0.2 Price elasticity of supply = +0.3. a) If there is a…
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