Madeline spends all of her spare money on widgets, which cost $2 each, and gizmos, which cost $3 each. What is her opportunity c

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. To determine the predetermined overhead rate appropriate for each department.

Given

Cutting Department

The Cutting Department calculates its rate based on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

For the Finishing Department, the rate is calculated based on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department's rate is based on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ This was calculated

The Finishing Department's calculations rely on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% of labor cost ------ This was deduced

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If the business utilizes a company-wide overhead rate linked to direct labor cost and if jobs have increased machine hours paired with lower labor costs, they would incur less overhead expenses.

Response

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Clarification

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Answer:

The opportunity cost for Janet to create a pizza amounts to 0.67 gallons of root beer, while for Megan it is 0.71 gallons of root beer.

Janet possesses an absolute advantage in pizza making, and Janet also has a comparative advantage in this activity.

When it comes to trading, Janet will exchange pizza for root beer. The price of pizza can be represented by the amount of root beer in gallons. To ensure both roommates benefit, the highest trade price for pizza is 0.71 gallons of root beer, while the minimum price allowing for mutual benefit is 0.67 gallons of root beer per pizza.

Explanation:

For Janet, the cost to produce one gallon of root beer is 3/2, which equals 1.5 pizzas. Janet's cost for making a pizza is calculated as 2/3, resulting in 0.67 gallons of root beer.

As for Megan, her cost to produce a gallon of root beer is 7/5, translating to 1.4 pizzas. Megan's cost of producing a pizza is 5/7, which equals 0.71 gallons of root beer.

Opportunity costs represent the additional expenses or benefits forfeited when electing one action or investment in place of another option. For instance, Janet can create either 1.5 pizzas or 1 gallon of root beer in a span of 3 hours, but she cannot accomplish both simultaneously; she must make a choice between the two options.

Answer:

51 % growth

Explanation:

Stock A initial price= $23.00

Stock A price after 6 months= $47.00

Stock A price increase= $47 - $23

                              = $24

Percentage change in stock price = $24  x  100%

                                                        $47

                                                     = 0.510 x 100%

                                                     = 51%

The stock price of Stock A has risen by 51%

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