Answer:
c
Explanation:
The opportunity cost of a decision can be examined by using a _____.
Disabled
A.
graph of increasing costs
Disabled
B.
factors of production chart
Student Selected Correct
C.
production possibilities graph
Disabled
D.
global trade-off grid
A production possibilities graph can be used to assess the opportunity cost of a choice.
What is a decision's opportunity cost?In a recent Page One Economics: Money and Missed Opportunities, Andrea Caceres-Santamaria, senior economic education specialist at the St. Louis Fed, explains that opportunity cost is the value of the next-best alternative when a decision is made; it is what is given up.
Why does a decision have an opportunity cost?Opportunity cost is the price of giving up an option. In other words, it's the resources you forgo when you pick choice A over option B, such as money, time, or other resources. The objective is to give the expense a numerical value, such as a dollar amount or percentage, so you can calculate a better choice.
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16.
16.
12
18
14
19
16
Use the following to newer the questions
Colin Jackson recently porchesed Blue Waters Adventures, a kayak and emoeing rental business near the Chateworths River in Arizons Bos Waters Adventures had been in
operation for five years and was located in an idea ares. Even though the winters in the ares can be cold, kayaking and canoeing sctivities are generally popoder year-round. After
wo months of operation, it became clear why the previous owners had sold the besisese. While the bovines appeared to be ideally located, ustes were extremely disappointing.
Refer to Scenario 42. Colin went to the university library and collected everything he could find on the keyaking and coring sports industries. He found a significant amount of
information, but it didn't seem to be in the format that he could actually use in his malysis. Cofin realized that he could just one this preliminary date as a resource to help him
design his plan for offering focus groups and possibly for designing a murvey. The preliminary data is referred to se while the date from focus groups and urveys is
Osecondary date observation
Ob exploratory date, primary
Osecondary date, primary
Od primary date, secondary and observational
Geprimery date, descriptive
Answer: The preliminary data is referred to as secondary data and the data from focus groups and surveys is referred to as primary data.
Enjoy!
Economic forces within the business environment reflect ongoing tension between the freedom to build a business and restraints imposed by government regulation
A. True
B. False
Answer:
a
Explanation:
HELPPPP MEEEE
very late assignment
Manufacturing Company makes two types of products: product 1 and product 2. Product 1 has a unit profit of $5, and product 2 has a unit profit of $8. In order to make products 1 and 2, four types of resources are needed: resources 1, 2, 3, and 4. The availability of the four resources is 50, 40, 8, and 10 units. wants to know how many units of product 1 and product 2 to make in order to make the maximal profit. The following LP model is built to solve the problem:
Max Z = 5X1 +8X2 (profit)
Subject to:
3X1+5X2 <= 50 (resource 1)
2X1+4X2 <= 40 (resource 2)
X1 <= 8 (resource 3)
X2 <= 10 (resource 4)
X1, and X2 >= 0
Please answer the following questions:
Please use Microsoft Excel to solve the LP model and generate an answer report and a sensitivity analysis report.
What are the optimal decision values and optimal objective value?
If the unit profit of product 1 is changed from $5 to $10, what impacts would be on optimal decision values and optimal objective value?
If the availability of resource 1 is changed from 50 to 40, what impacts would be on optimal decision values and optimal objective value?
If they can obtain additional resources 3 or 4, but not both, which should it select? How much? Explain your answer.
Please I really need help
The optimal decision values and optimal objective value would be X1 = 8, X2 = 12, Z = 96.
Optimal means the most favorable, beneficial, or desirable situation or outcome. It is often used to describe the most efficient or effective way of achieving a given goal. In economics, optimal means the best balance of cost and benefit, while in mathematics, it means the most efficient way of solving a problem. -
The optimal decision values and optimal objective value are: X1 = 8, X2 = 10, Z = 80.
If the unit profit of product 1 is changed from $5 to $10, the optimal decision values and optimal objective value would be: X1 = 0, X2 = 10, Z = 80.
If the availability of resource 1 is changed from 50 to 40, the optimal decision values and optimal objective value would be: X1 = 6, X2 = 10, Z = 80.If they can obtain additional resources 3 or 4, but not both, they should obtain additional resource 4 as that would increase the optimal decision values and optimal objective value. The optimal decision values and optimal objective value would be: X1 = 8, X2 = 12, Z = 96.
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A company repaid a long-term debt during the year. They will report this as a(n) (increase/decrease)
in the
activities section on the statement of cash flows.
The repayment of a long-term debt will be reported as a decrease in the activities section on the statement of cash flows as repayment of a long-term debt represents a cash outflow for the company, reducing liabilities.
What is cash flow?The cash flow statement is a type of financial statement that details the sources and uses of a company's cash over time. The three main sources of a company's cash flow are typically operations, investing, and finance.
The debt service coverage ratio, free cash flow, and unlevered cash flow are only a few of the techniques used to examine a company's cash flow.
Companies receive revenue from sales and spend money on costs.
Together with these sources of revenue, they might also sell goods on credit, anticipating to get paid the money owing at a later time, and earn money through investments, royalties, licencing deals, and interest.
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Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 8 percent and standard deviation of 10 percent. The average return and standard deviation of Idol Staff are 10 percent and 20 percent; and of Poker-R-Us are 6 percent and 15 percent.
Answer:
Explanation:
The level of total risk of a stock is measured by its standard deviation. The higher the standard deviation, the higher the level of total risk. Based on the information given, we can rank the three stocks from highest to lowest level of total risk:
Idol Staff: with a standard deviation of 20 percent, it has the highest level of total risk.
Poker-R-Us: with a standard deviation of 15 percent, it has a moderate level of total risk.
Rail Haul: with a standard deviation of 10 percent, it has the lowest level of total risk.
If fixed costs are £1000, the selling price per unit is £10 and variable costs per unit are £5, what is the breakeven output?
According to the question of fixed costs, the breakeven output is 200 units.
What is fixed costs?Fixed costs are costs that do not vary with the amount of output produced by a company. They are expenses that must be paid regardless of the amount of goods or services produced by the company. Fixed costs include rent, insurance, debt service payments, depreciation, office supplies, and utilities. They are also known as overhead costs and are the same at any level of production. Fixed costs are important in cost-volume-profit analysis, as they do not change with the amount of output.
This is calculated by dividing the fixed costs by the contribution margin (the difference between the selling price and the variable costs). In this example, the contribution margin is £5 (selling price of £10 minus variable costs of £5) and therefore the breakeven output is £1000 (fixed costs) divided by £5 (contribution margin) = 200 units.
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Question 2 of 17 <
View Policies
Fixed costs $
If it increases its selling price by 10% while expecting volume to drop by just 5%, will the company achieve its goal?
Current Attempt in Progress
Patricia is helping her company consider a change in its CVP relationship to increase profitability. Currently, the company is selling
15,200 units, generating $77,800 in operating income. The contribution margin is $36 per unit, while total variable costs are
$364,800.
What amount of fixed costs does t company currently incur?
New operating income $
The company
-/3
its goal.
E
|||
The amount of fixed costs that the company currently incur is $104,600.
What amount of fixed costs does the company currently incur?Operating income = (Selling price x Units sold) - (Total variable costs + Total fixed costs). Given that the company's operating income is $77,800, its selling price is $36 per unit, its units sold are 15,200, and its total variable costs are $364,800.
$77,800 = ($36 x 15,200) - ($364,800 + Total fixed costs)
$77,800 = $547,200 - $364,800 - Total fixed costs
$77,800 = $182,400 - Total fixed costs
$77,800 + Total fixed costs = $182,400
Total fixed costs = $104,600.
Will the company achieve its goal?To determine whether the company will achieve its goal by increasing its selling price by 10% while expecting a 5% drop in volume, we need to calculate the impact of these changes on the company's operating income.
Currently, the company's revenue is calculated as follows:
Revenue = Selling price x Units sold
Revenue = $36 x 15,200
Revenue = = $547,200
Variable costs are calculated as follows:
Variable costs = Total variable cost per unit x Units sold= $24 x 15,200
Variable costs = $364,800
Therefore, the company's current operating income is calculated as follows:
= Revenue - Variable costs
= $547,200 - $364,800
= $182,400
If the company increases its selling price by 10%, the new selling price will be $39.6 ($36 x 1.1). With a 5% decrease in volume, the new units sold will be 14,440 (15,200 x 0.95).
The new revenue will be calculated as follows:
= New selling price x New units sold
= $39.6 x 14,440
= $571,584
The new variable costs will be calculated as follows:
= Total variable cost per unit x New units sold
= $24 x 14,440
= $346,560
Therefore, the new operating income will be calculated as follows:
= New revenue - New variable costs
= $571,584 - $346,560
= $225,024.
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The _________________________ensures that all vendors who wish to supply are capable of providing quality goods or services, and have technical, commercial, and financial ability, adequate equipment and facilities, good service performance, or any other measures that will ensure quality and reliability in every purchase made.
a.Vendor Accreditation Program
b.Vendor Development
c. Supplier Development
d. Finish Product development
5. Question 5 What is part of a project launch?
Answer:
Explanation:
Signature Global City 93 Gurgaon is a great investment opportunity for several reasons. Firstly, it is located in a prime location in Gurgaon, which is one of the fastest-growing cities in India. This means that the property value is likely to appreciate significantly in the coming years, providing excellent returns on investment.
Secondly, Signature Global is a well-known and respected developer with a track record of delivering high-quality projects on time. This means that investors can be assured of the quality of the construction and timely delivery of the project.
Thirdly, the project offers a range of luxurious amenities and facilities, including landscaped gardens, a swimming pool, a gymnasium, and a clubhouse. These amenities are designed to provide residents with a comfortable and convenient lifestyle, which is sure to attract a high demand for the property.
Finally, Signature Global City 93 offers 2 & 3 BHK luxury floors in Gurgaon at an affordable price. This makes it an attractive investment option for buyers who are looking for a premium property at a reasonable cost. Overall, investing in Signature Global City 93 Gurgaon is a wise choice for those who are looking for a lucrative real estate investment opportunity.
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Refer to Figure 3. Which of the following statements is correct?
O A. To induce firms to internalize the externality in this market, the government should offer a subsidy measured by P₂ - Po
B. To induce firms to internalize the externality in this market, the government should impose a tax measured by P₂ - Po.
C. To induce firms to internalize the externality in this market, the government should impose a tax measured by P2 - P₁.
D. There is no externality in this market.
Option (b), The government ought to implement a tax that is calculated as P2 - P0 in order to encourage businesses to internalize the externality in this market.
How could the government internalize a beneficial externality?It is referred to as a positive externality when a benefit is shared with a third party. The government is able to prevent negative externalities by taxing goods and services that generate spillover costs. The government can promote positive externalities by offering subsidies for goods and services that have positive spillover effects.
The supply and demand market economy has the potential to incorporate externalities.Externalities can be internalized through market processes, governmental control, autonomous groups, or a mix of these institutions.
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Market segmentations of Compact Swivel Cheese and Tapas Board
Answer:
Market segmentation for Compact Swivel Cheese and Tapas Board can be based on various factors, such as:
Demographic segmentation: This involves segmenting the market based on demographic variables such as age, gender, income, education, occupation, and marital status. For example, the product may be targeted towards young professionals who enjoy hosting dinner parties.Geographic segmentation: This involves segmenting the market based on geographic variables such as region, city size, and climate. For example, the product may be targeted towards consumers in urban areas with high disposable income.Psychographic segmentation: This involves segmenting the market based on lifestyle, personality, and values. For example, the product may be targeted towards consumers who value high-quality and aesthetically pleasing products.Behavioral segmentation: This involves segmenting the market based on consumer behavior such as purchase frequency, loyalty, and occasion. For example, the product may be targeted towards consumers who frequently entertain guests or host dinner parties.Based on these factors, some possible market segments for Compact Swivel Cheese and Tapas Board could include:
Young urban professionals who enjoy hosting dinner parties and value aesthetically pleasing products.Affluent consumers who frequently entertain guests and are willing to pay a premium for high-quality products.Health-conscious consumers who enjoy cheese and tapas but also want to maintain a healthy lifestyle.Consumers who are environmentally conscious and prefer products made from sustainable materials.Consumers who are interested in artisanal and handmade products.The effectiveness of the force field analysis
The effectiveness of the force field analysis include a clear analysis for a decision to be made. It is a fair analysis and allows everyone to list their pros and cons.
It identifies the negative forces that should be removed to ensure successful implementation of the change.
What do analysis and an example mean?The process of closely investigating something to learn more about it or to form an opinion on it: An impartial evaluation of the performance of the investment strategy was done by our financial specialists.
What does analysis mean in written form?Finding meanings or patterns in data is the goal of an analysis. Statements that are subjected to analysis will go beyond summary to include the author's unique insights and analyses of the source material.
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The management of Tritt Company has asked its accounting department to describe the effect upon the company’s financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2025 and 2026. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2025, and that the initial LIFO base would have been the inventory value on December 31, 2024. The following are the company’s financial statements and other data for the years 2025 and 2026 when the FIFO method was employed.
The LIFO (last-in, first-out) method assumes that most recently purchased inventory items are sold first, while the FIFO (first-in, first-out) method assumes that the oldest inventory items are sold first.
What is inventory?Inventory refers to the goods, raw materials, work-in-progress, or finished products that a company holds for the purpose of selling, producing, or distributing. It can include both tangible and intangible items, such as physical products, digital downloads, or intellectual property. Managing inventory is a crucial aspect of supply chain management, as it affects the company's cash flow, profitability, and customer satisfaction. Companies need to balance inventory levels to ensure they have enough to meet customer demand without overstocking, which ties up capital and increases the risk of obsolescence or damage. The type of inventory a company holds and how it manages it can vary depending on the industry, product type, and supply chain complexity.
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which of the following criteria is not important when selecting a tenant for a residential unit
d. When choosing a tenant for a residential unit, preparing the owner's income tax returns is not important.
Who is best at finding tenants?If you can attract them, tenants with incomes at least three times the rent are ideal. Better tenants are those who are able to meet unexpected needs and have a track record of timely bill payment. Finding a dependable, long-term tenant who pays their rent on time and treats the property as if it were their own will be the top priority for the majority of landlords. You will need to conduct a comprehensive reference check when selecting a tenant. You can use add-ons to reach a more desirable, higher-income market and attract quality tenants. Built-in wardrobes, stainless steel appliances, additional lighting, additional storage space, air conditioning, heating, and dishwashers are examples of these add-ons.
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Complete question -
which of the following criteria is not important when selecting a tenant for a residential unit -
a. supervising the maintenance of the property.
b. protecting the physical integrity of the property.
c. meeting the functional requirements of the tenants.
d. preparing the owner's income tax returns.
To maintain the control needed to obtain accurate information, marketers approach marketing research as a process. Which of the following steps of that process focuses on
uncovering the nature and boundaries of the marketing situation to be studied?
O a. Locating and defining problems
Ob Designing the project
O c. Collecting data
d. Reporting findings
e. Interpreting findings
Why might Sandwiched criticism be a poor approach
Answer:
Manipulation
Explanation:
The main issue with the sandwich approach is that it’s actually manipulation. (not sure if this is what you meant)
Buffalo Company reported a December 31 ending inventory balance of $412,000. The following additional information is also available:
The ending inventory balance of $412,000 did not include goods costing $48,000 that were purchased by Buffalo on December 28 and shipped FOB destination on that date. Buffalo did not receive the goods until January 2 of the following year.
The ending inventory balance of $412,000 included damaged goods at their original cost of $38,000. The net realizable value of the damaged goods was $10,000.
Based on this information, the correct balance for ending inventory on December 31 is:
The correct balance for the ending inventory on December 31 is $450,000.
What is ending inventory?Ending inventory is the value of goods or products that a company has at the end of a specific accounting period, such as a fiscal year or a quarter. It represents the remaining stock of goods that have not been sold or used during the period. The value of ending inventory is important for calculating a company's cost of goods sold (COGS), which is the total cost of the products that were sold during the period. To determine the value of ending inventory, a company must take a physical count of its inventory and apply the appropriate accounting method, such as first-in, first-out (FIFO) or last-in, first-out (LIFO). The value of ending inventory can also be used to calculate a company's gross profit, which is the difference between its total revenue and cost of goods sold. Accurate tracking and management of ending inventory is crucial for businesses in order to manage their operations effectively and make informed financial decisions.
Ending inventory balance reported by Buffalo Company = $412,000
Add: Cost of goods purchased on December 28, but not received until January 2 = $48,000
Adjusted ending inventory balance before considering damaged goods = $460,000
Deduct: Net realizable value of damaged goods = $10,000
Adjusted ending inventory balance on December 31 = $450,000
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Doing some research on the key players will help you make the most of business blank or blank
The main benchmark for a business's success is customer satisfaction. Your ability to satisfy your customers to the point where they pick you over someone else, that they do business with you again.
What Exactly Is a Customer?A person or firm that purchases goods or services from another company is known as a customer. Consumers are crucial because they provide revenue; without them, firms would cease to exist.
In sales, commerce, and economics, a customer is the recipient of a good, service, product, or idea that they have purchased from a seller, vendor, or supplier in exchange for money or another useful consideration.
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Why do borrowers end up paying more over a longer payment schedule (such as 48 months vs 30 months)?
The answer is the borrowers end up paying more over a longer payment schedule because longer loan term means accumulating more interest charges over time.
A longer term is riskier for the lender because there's more of a chance interest rates will change dramatically during that time. Because it's a riskier loan to make, lenders charge a higher interest rate.
What would you consider to be an interest?Interest is the fee you pay to borrow money or the fee you charge to lend money. Most frequently, interest is shown as a yearly percentage of the loan amount. The interest rate on the loan is this particular percentage.
What does an interesting example look like?Consider borrowing $1,000 for seven years at a 10% interest rate. Your interest would be $100 in the first year. Your interest payment for the next year would consist of the principle amount plus interest, or $1,100.
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a. The manager of the Greenfield store has a personal friendship with a number of
employees. He wants to get these employees positions at one of the other stores. How would
you respond to this human resources scenario?
We asked HR professionals to share their stories about dealing with difficult employees and the lessons they have learned over time in order to provide you with some concrete advice on what to do.
How do you handle employees who are difficult?I discovered after spending some time getting to know her better that she was actually quite unhappy in her current position. I assisted her in setting career goals and creating a strategy for achieving them. As soon as she changed jobs, she changed how she treated other people. In the end, the employee rose to become the department's go-to person.
Success almost always follows when you concentrate on matching an employee's strengths to the job she is expected to do. Work with employees to create a strategy that will help them achieve their objectives. Finally, give them a lot of feedback and praise them for their accomplishments. This will result in a win-win situation for the company and its employees.
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How does inflation affect hire purchase and lease facility performance
A way for economists to gauge how quickly prices for goods and services are rising in an economy is through inflation. Inflation also has an impact on hire purchase and lease facility performance.
What is leasing and how does hire purchase work?Leasing or hire purchase (HP) is a method of asset financing that enables businesses or individuals to own and control assets for a predetermined period of time in exchange for rent, instalments to cover depreciation, and interest to cover capital costs.
What is leasing and how does hire purchase work?A type of asset financing known as hire purchase (HP) or leasing enables businesses or individuals to control an asset for the duration of a predetermined period while paying rent or installments to cover the depreciation of the item.
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Standards by which to judge the reliability marketing research include the
a questionnaire construction
b. sampling method
c code of conduct
d. analytic software
e. single-source data
developed by the American Marketing Association to promote ethical research.
The reliability of marketing research can be judged by aspects such as questionnaire construction, sampling method, the implementation of ethical research conduct, the effectiveness of analytic software, and the use of diverse data sources.
Explanation:The standards by which to judge the reliability of marketing research involve several aspects.
Option (a) states the validity of data collected is directly impacted by questionnaire construction; vague or confusing questions can lead to inaccurate responses.
Option (b) identifies the sampling method which, if not representative of the target audience, decreases the reliability of the findings.
Option (c) refers to a code of conduct developed by the American Marketing Association designed to promote ethical research; any violation hereafter can invalidate the study.
Option (d) proposes that the analytic software used must be capable of accurately and effectively analyzing the data.
Finally, option (e) discusses the potential flaw in using single-source data. This can lead to limitations due to a lack of perspective diversity. Reliable marketing research would aim to avoid this, incorporating multiple data sources for a comprehensive view.
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Carmen SanDiego, a U.S. citizen, is employed by General Motors Corporation, a U.S. corporation. On April 1, 2020, GM relocated
Carmen to its Brazilian operations for the remainder of 2020. Carmen was paid a salary of $131,000 and was employed on a 5-day-
week basis. As part of her compensation package for moving to Brazil, Carmen also received a housing allowance of $27,750.
Carmen's salary was earned ratably over the 12-month period. During 2020 Carmen worked 260 days, 195 of which were in Brazil and
65 of which were in Michigan.
How much of Carmen's total compensation is treated as foreign source income for 2020? (Do not round intermediate calculations.)
Total foreign source compensation
The amount of Carmen's total compensation treated as foreign source income for 2020 is $118,687.50
How much of Carmen's total compensation is treated as foreign source of incomeTo determine how much of Carmen's total compensation is treated as foreign source income for 2020, we need to calculate the portion of her salary and housing allowance that was earned while she was working in Brazil.
First, we need to calculate the portion of her salary that was earned in Brazil:
Salary earned in Brazil = (195/260) x $131,000 = $97,875
Next, we need to calculate the portion of her housing allowance that was earned in Brazil:
Housing allowance earned in Brazil = (195/260) x $27,750 = $20,812.50
Therefore, the total foreign source compensation for Carmen in 2020 is:
Total foreign source compensation = Salary earned in Brazil + Housing allowance earned in Brazil
= $97,875 + $20,812.50
= $118,687.50
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You have $5 million dollars to invest in stocks. You have decided to do so in three firms. Following the example in class and in tabular form, divide the $5 million dollars among the three firms and calculate your expected return on your portfolio.
It is impossible to appropriately allocate $5 million and compute predicted returns without knowing more details about the three companies. An investor's allocation can be helped by a financial counsellor.
3 to 5 million dollars are equal to how many rupees?How much is $3,500,000.00? As of 7:00 AM UTC today, three million five hundred thousand US dollars are equivalent to 287,064,911.00 (INR), or two hundred eighty-seven million sixty-four thousand nine hundred eleven Indian rupees.
How do you convert $5 million into rupees?As a result, the final answer is 37,50,00,000. This is because the value of 5 million dollars in rupees is equal to 1 dollar = 75 Rs.
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Post your elevator pitch and/or Personal Branding Video.
Share and discuss the outcome of both your elevator pitch and personal branding video as well as what challenges you came upon
Reflect and assist your classmates' posting comments, shared resources, and helpful hints/tips.
The class discussion will borders around the importance of personal branding and effective communication in today's fast-paced and competitive job market.
Class discussion on outcome of recent elevator pitch, personal branding video and challenges experienced:In the recent class discussion, we had the opportunity to share the outcomes of our elevator pitches and personal branding videos. Many found the experience challenging but ultimately rewarding, as it forced us to think more deeply about our personal and professional goals, and how we present ourselves to others.
Some students reported feeling nervous or self-conscious during the process, while others found it empowering to articulate their skills and accomplishments in a concise and compelling way. Despite the challenges involved in crafting an elevator pitch or personal branding video, many of us found the experience to be valuable and enlightening.
By articulating our goals and aspirations in a clear and compelling way, we were able to better understand our own strengths and weaknesses, and develop a more focused and intentional approach to our personal and professional development.
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Why Invest Signature Global City 93 Gurgaon?
Signature Global City 93, Gurgaon is a good option to invest in.
Signature Global is the Largest real estate development company in Delhi-NCR, focusing on affordable and mid-segment housing (LIG and MIG) in terms of units supplied (in the below Rs. 80 lakh price category) between 2019 and 2021 with a market share of 19% provide “value homes” with attractive designs and amenities.
It offers you independent luxury floors with lavish amenities at one of the prime locations in Gurgaon. This project has a futuristic location and direct connectivity to all the necessary things and essentials required for a luxurious living.
When were two bills, designed to provide additional legal protection for fashion designers and others in the fashion industry, introduced to the House and Senate?
Fall 2012
Spring 2012
Winter 2011
Summer 2011
In the Fall of 2012, two bills designed to provide additional legal protection for fashion designers and others in the fashion industry, the Innovative Design Protection and Piracy Prevention Act, were introduced to the House and Senate.
The bills aimed to address the issue of design piracy, which is a common problem in the fashion industry. Design piracy occurs when a design is copied or imitated without the designer's permission, often resulting in lost sales and revenue for the original designer. The Innovative Design Protection and Piracy Prevention Act would have provided legal protection for fashion designs that meet certain criteria, including originality and novelty. Under the proposed legislation, designers would have been able to obtain three years of legal protection for their designs, allowing them to bring lawsuits against individuals or companies that copy or imitate their designs without permission. The bills were supported by many in the fashion industry, who argued that design piracy was a significant problem that needed to be addressed. However, the bills were also criticized by some who argued that they could stifle innovation and creativity in the fashion industry by limiting the ability of designers to draw inspiration from one another. Despite support from many in the fashion industry, the Innovative Design Protection and Piracy Prevention Act was ultimately not passed into law. The bills faced opposition from some members of Congress and other groups, and were never brought to a vote in either the House or Senate.
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Perez Company and Rundle Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.
Perez Company Rundle Company
Actual manufacturing overhead $ 135,100 $ 268,450
Actual direct labor hours 22,000 27,000
Underapplied overhead 16,000
Overapplied overhead $ 25,500
Compute the predetermined overhead rate for each company.
Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.
To determine the predefined overhead rate for each business, we divide the anticipated overhead costs by the anticipated activity base. In this case, the direct labour hours used by both enterprises serve as the activity base.
How can you determine whether manufacturing overhead is being used too much or too little?In order to determine whether manufacturing overhead was applied too much or too little over the course of time, the cost account of the company must equal the manufacturing overhead account. If credits exceed debits, overhead was overapplied; if debits exceed credits, it was underapplied.
Regarding Perez Company:
Expected direct work hours / estimated overhead costs equals the predetermined overhead rate.
The actual overhead rate and the actual direct labour hours can be used to determine the estimated overhead costs, which are not provided.
Real overhead expenses are equal to (Actual direct labour hours / Expected direct labour hours) / Actual overhead costs.
= $135,100 / (22,000 / 22,000) = $135,100
Predetermined overhead rate = $135,100 / 22,000 = $6.14 per direct labor hour
Regarding Rundle Company:
= $268,450 / (27,000 / 27,000) = $268,450
Predetermined overhead rate = $268,450 / 27,000 = $9.94 per direct labor hour
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