Laramie, Inc., has an operating environment with considerable uncertainty. The company prepares the budget for several different volume levels. Laramie had the following budgeted data: Budgeted variable costs per unit: Direct materials $7.00 Direct labor 10.00 Supplies 1.00 Indirect labor 0.50 Power 0.05 Budgeted fixed overhead for 2018: Supervision 4,000 Depreciation 3,000 Rent 2,000 What are the budgeted costs for rent if 5,000 units were produced

Answers

Answer 1

Answer:

Answer:

$2,000

Explanation:

The cost incurred by an entity during production may be recognized in two groups namely the fixed costs and the variable cost.

While the fixed cost are cost elements that remain constant at a given range of activity levels, the variable cost change as the activity level (that is the units produced) changes.

The rental cost, supervision and depreciation are cost elements that are fixed.

Hence where 5,000 units were produced, budgeted cost for rent is $2,000.

Answer 2

Answer:

Final answer:

The budgeted cost for rent would remain at $2,000 even if Laramie, Inc. produces 5,000 units. This is because rent falls under fixed costs, which do not vary with the level of production.

Explanation:

The question is asking for the budgeted costs for rent if 5,000 units were produced by Laramie, Inc. Here, it's important to differentiate between variable costs and fixed costs. Variable costs, including labor and raw materials, increase or decrease with output levels; they vary with the number of units produced. Fixed costs, on the other hand, like rent and depreciation, are expenditures that remain constant regardless of the level of production. From the provided data, we can see that the budgeted fixed overhead for rent is $2,000. This cost does not change with the number of units produced. So, even if 5,000 units are produced, the budgeted cost for rent would still be $2,000.

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Which of the following is not an obstacle to achieving environmental efficiency through markets? Select one: a. Transactions costs. b. Income effects. c. Free-rider problems. d. Private negotiations.

Answers

Answer:

The correct answer is letter "D": Private negotiations.

Explanation:

Environmental efficiency through markets is in charge of promoting the creation of more goods and services without the need for exploiting more resources or increasing pollution. Its purpose is to take sustainability towards economic efficiency considering ecological awareness.

In that case, private negotiations could boost environmental efficiency since firms could create partnerships among them to contribute to each other in their production process to avoid the use of more natural resources.

Sheridan Company's trial balance reflected the following account balances at December 31, 2017: Accounts receivable (net) $37,000
Trading securities 11,500
Accumulated depreciation on equipment and furniture 29,000
Cash 33,000
Inventory 58,500
Equipment 45,000
Patent 9,000
Prepaid expenses 3,700
Land held for future business site 36,500

In Sheridan’s December 31, 2017 balance sheet, the current assets total is:

a. $212500.
b. $234300.
c. $146500.
d. $218300.

Answers

Answer:

$143,700

Explanation:

Current assets in Sheridan Company's trial balance are;

Accounts receivable (net) = $37,000

Trading securities = $11,500

Cash = $33,000

Inventory = $58,500

Prepaid expenses = $3,700

Total current assets = $37,000 + $11,500 + $33,000 + $58,500 + $3,700

= $143,700

The right answer is not given as an option.

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Answers

Answer: 100

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Answers

Answer: b. fields of experience

Explanation: The different interpretations of the advertisement are primarily due to differing fields of experience. The interpretation errors due to dissimilar or differing fields of experience are the consequence of bad translations made when the KFC slogan of "finger-lickin' good" was translated into Mandarin Chinese as "eat your fingers off"!

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Answers

Answer:

The correct answer is letter "B": Economies of agglomeration; corresponding diseconomies.

Explanation:

Economies of agglomeration refer to a type of economy in which companies are located one close to another to take advantage of their core competencies. This economic structure typically helps businesses to reduce relocation and delivery costs increasing their profits but in some other cases, the costs could increase if some of the firms lost their economies of scale.

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What affect a sales volume increase or decrease will have on unit fixed cost, unit variable cost, total fixed cost, and total variable cost?

Answers

Answer:

Fixed Cost:

Total remains unchanged at total level.

And are variable at unit level, increase at lower level and decrease as higher level.

Variable Cost:

At unit cost, are the same, are the cost of producing one unit.

At total variable cost, it will increase along with sales and decrease when the sales are lower.

Explanation:

The unit fixed cost will be variable at unit level. As this amount will be distribute over more or less units.

So an increase of sales, decrease the unit fixed cost

and decrease of sales, increase the unit fixed cost

At total level, the fixed cost are the same for hte relevant range.

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