Business, 22.05.2020 06:01, emmanuelmashao5504

Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One is blue; the other is red. Ink is made in batches with setup costs being $2,000 per batch. Demand for blue ink is significantly stronger than for red ink. During the most recent week, the company made 2 batches of ink, one blue the other red. It requires 1 hour of labor to make a gallon of ink regardless of color. There were 300 hours of labor used to make the blue ink and the 100 hours of labor used to make the red ink. Under these circumstances

a. none of the answers is correct.

b. more of the total setup cost should be assigned to the red ink than to the blue ink.

c. more of the total setup cost should be assigned to the blue ink than to the red ink.

d. the total setup cost should be allocated equally between the red and blue ink.

- If the Company uses a single company wide overhead rate based on labor hours, the amount of setup cost allocated to the

a. blue ink is $4,000 and red ink is zero.

b. blue ink is $1,000 and red ink is $3,000

c. blue ink is $3,000 and red ink is $1,000.

d. blue ink is $2,000 and red ink is $2,000.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 17:20, Ddom

Your aunt is thinking about opening a hardware store. she estimates that it would cost $300,000 per year to rent the location and buy the stock. in addition, she would have to quit her $45,000 per year job as an accountant. a. define opportunity cost. b. what is your aunt's opportunity cost of running a hardware store for a year? if your aunt thought she could sell $350,000 worth of merchandise in a year, should she open the store? explain.

Answers: 2

continue

Business, 22.06.2019 06:50, kat2788

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i. e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i. e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process. b)consumers have the right to clean air; consumers are dominant in the bargaining process. c)firm has the right to pollute; firm is dominant in the bargaining process. d)firm has the right to pollute; consumers are dominant in the bargaining proces

Answers: 1

continue

Business, 22.06.2019 12:10, latdoz0952

Which of the following is not part of the mission statement of the department of homeland security? lead the unified national effort to secure america protect against and respond to threats and hazards to the nation ensure safe and secure borders coordinate intelligence operations against terrorists in other countries

Answers: 1

continue

Business, 22.06.2019 16:10, safiyyahrahman6907

From what part of income should someone take savings?

Answers: 2

continue

Do you know the correct answer?

Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One i...