Amounts Variable overhead: Price variance $ (0%) (0%) Efficiency variance $ (0%) (0%) Fixed overhead: Price variance $ (0%) (0%) ________________________________________ P16-45 Overhead Variances (L.O. 5, 6) Lima Parts, Inc., shows the following overhead information for the current period: Actual overhead incurred $ 29,400 2/3 of which is variable Budgeted fixed overhead $ 8,640 per
AC 553 Week 7 47. On April 18, 2011, Jane Juniper purchased 30 shares of Bryan Corp. stock for $210, and on September 29, 2011, she purchased 90 additional shares for $900. On November 28, 2011, she sold 48 shares, which could not be specifically identified, for $576 and on December 8, 2011, she sold another 25 shares for $188. What is her recognized gain or loss? 210/30= $7; 900/90= $10.
only the portion of the loss attributable to inventory sold during the period is recorded in the financial statements. B. the market value figure for ending inventory is substituted for cost and the loss is buried in cost of goods sold C. a loss is recorded directly in the inventory account by crediting inventory and debiting loss on inventory decline. D. there is a direct reduction in the selling price of the product that results in a loss being recorded on the income statement prior to the sale. 15) Designated market value A. may sometimes exceed net realizable value. B. should always be equal to net realizable value less a normal profit margin.
The substitution effect is the effect on the quantity of a good demanded by the consumer as a result of the relative price being different and this factor alone. In this case, the price of both black and white colour televisions fall, whilst the price of all other goods remain constant. This may lead to individuals being more inclined to spend money on consuming both black and white, and colour televisions as they are relatively cheaper than other goods. The income effect of a decrease in the price of the good is the effect on the quantity demanded due to the fact that the consumer’s real income has changed and that factor alone. In this particular case, the consumer’s real income has increased as a result of the fact that the price of both black and white televisions and coloured televisions have fallen.
As the time horizon increases, variable costs rely less on existing factors and restrictions and therefore will begin behaving differently which will in turn affect the cost of production (Wright, 2007). The second way a firm that’s into profit maximization can decide its greatest level of output is by way of the marginal revenue -- marginal cost method. This is done by subtracting the marginal cost from the marginal revenue that a product generates. Using marginal cost and marginal revenue as the bases, profit maximization will be obtained at the point when marginal revenue is equal to marginal cost. If the marginal revenue is greater than marginal cost this would be when a profit maximizing firm would need to increase production until marginal revenue is equal to marginal cost.
iii) Indifference Curves Are Convex To The Origin – As the amount of Good X increases by equal amounts, Good Y will reduce by smaller amounts. iv) Indifference Curves Do Not Touch The Horizontal Or Vertical Axis – The basic assumption of the consumer buying two goods in combination would be violated if the curve were to touch either
| | | | | Selected Answer: | $10,000 | | | | | * Question 7 2 out of 2 points | | | Examine the graph below. If the going rate for wind chimes at the flea market today is $20, then | | | | | Selected Answer: | you will have $30 in producer surplus. | | | | | * Question 8 0 out of 2 points | | | Using the data below, determine the amount of consumer surplus, if any, in the market. The market clearing price for a six-pack of vitamin water is $6. | Six-Pack Vitamin WaterWilling to Pay(WTP) | Shaq | $3 | Tony | $4 | Chris | $5 | Cobe | $6 | Arnel | $7 | Michelle | $8 | | | | | | Selected Answer: | $5 | | | | | * Question 9 0 out of 2 points | | | Examine the graph below.
Box G7 or Box G18 Activity 5.7 In Activity 5.1 you used the BAS worksheet to complete the quarterly BAS for The Nice Scent Shoppe. Now we will give you some further information for that quarter and you are to complete the BAS Summary report using Option 2 for PAYG income tax instalment. 1. The FBT instalment has been notified as $2400. The firm requires this to be varied to an annual FBT payable of $12 000.
It can be measured or approximated rather, using GNP, Per capita income (PCI), income distribution measures, using the concepts of consumer’s surplus and producer’s surplus, etc. Estimation of welfare using GNP or PCI is considered, here, to be inefficient, because one cannot say welfare has improved when there is an increase in GNP or PCI. This is because the increase or change may be appropriated be some parties while others may even lose from their initial standard of living (i.e. the income gap between the rich and the poor may become wider while there is an increase in GNP or PCI, which will not reflect welfare improvement at the individual level). The other alternative is to approximate welfare using income distribution measures, such as poverty line, as a variable.