variable production cost of the component. zero. the full manufacturing cost of the component. the addressed manufacturing cost of the component.

You are watching: The opportunity cost of making a component part in a factory with no excess capacity is the



As we know that

Opportunity price is the net advantage aincrease from the loss experienced from the preferred alternative.

In the given case, it is discussed that tright here is no different use for the excess capacity for the manufacturing facility and therefore no get or profit foregone.

In enhancement, the Fixed Manufacturing expense stays solved whether production boosted or not . Only incremental or avoidable addressed costs will certainly be pertinent for decision making.

While on the various other hand also , the variable costs are costs which increases or decreases depend on increase or decrease in manufacturing volume.

If tright here is an excess capacity made use of for making extra components so it will certainly rise in proportion to boost in production volume and vice versa.

And, the Total Manufacturing price is the combicountry of full variable expense and also resolved prices, therefore is not an possibility cost as stated above

You can be interested in

What are some advantages to using paper versus electronic claims?
Olenka <21>
With paper claims, you are at much less threat of your indevelopment being stolen. On the various other hand, an digital claim is less complicated to be accessed by unauthorized people. 
3 0
11 months ago

Martha contacts a bakery to acquire a cake for her son"s birthday party.She tells the baker that she will pay him $150 for the cake
polet <3.4K>

C) Martha cannot sue the baker.


Martha cannot sue the baker bereason she has actually not experienced any type of contractual damages. The verbal agreement was a conditional contract. The baker would have been passist if he yielded the cake on Friday.

Since the baker faibrought about supply the cake, Martha is not under any obligation to pay him. Although Martha was inconvenienced, she did experience financial losses. She cannot sue for any type of damperiods as the contract did not materialize.

6 0
5 months ago

If you invest $100 per year for 12 years at an interest rate of 6%, how a lot money will certainly be in the account in the future?
Sergeu <11.5K>



The future worth of an annuity is identified by the complying with expression:

" alt="FV = A*" align="absmiddle" class="latex-formula">

For an annual investment (A) of $100 for a period (n) of 12 years at an interest rate (r) of 6%, the future worth (FV) is:

\FV=$1,686.99" alt="FV = 100*\FV=$1,686.99" align="absmiddle" class="latex-formula">

After 12 years, there will be $1,686.99 in the account.

4 0
9 months ago

Choose the correct

See more: Knowing How To Judge A Science Fair Project S, A Judge'S Guide To Science Fair

Serga <27>

Walking to the convenience

store to buy a snack.

3 0
3 months ago
Read 2 more slrfc.orgs
Marquis Company approximates that annual manufacturing overhead costs will certainly be $900,000. Estimated annual operating task bases a
scZoUnD <109>

Basis Rate

Labour hour $18 per direct labour

Machine hour $9 per machine hour

Budgeted labour price 180% of labour cost


Prefigured out overhead absorption rate=

Estimated Overhead for the period/Estimated task level

Labour hour basis

Estimated Overhead for the period/Estimated labour hours

= $900,000/50,000

=$18 per straight labour

Machine hour basis

Estimated Overhead for the period/Estimated machine hours

Overhead price per machine hour = $900,000/100,000 hours

=$9 per machine hour

Direct labour expense basis

Pre-figured out overhead rate = Estimated Overhead for the period/Estimated labour price


=180% of labour cost

Basis Rate

Labour hour =$18 per straight labour

Machine hour =$9 per machine hour

Budgeted labour cost 180% of labour cost

8 0
5 months ago
Other questions:
Remember me
Not registered? Quick signup
Your nickname
Login Signup
Ask question!