Nil Co Uses a Predetermined Overhead Rate Based on Direct Labour

question 1

Multiple Choice

Nil Co. uses a predetermined overhead rate based on direct Labour cost to apply manufacturing overhead to jobs. For the year ended December 31, Nil's estimated manufacturing overhead was £600,000, based on an estimated volume of 50,000 direct Labour hours, at a direct Labour rate of £6.00 per hour. Actual manufacturing overhead amounted to £620,000, with actual direct Labour cost of £325,000. For the year, manufacturing overhead was

• A)overapplied by £20,000.
• B)underapplied by £22,000.
• C)overapplied by £30,000.
• D)underapplied by £30,000.

Analyze the determinants of the equilibrium price and quantity in monopolistically competitive markets.

Evaluate the conditions for short-run and long-run equilibria in monopolistically competitive markets, including the role of economic profits.

Identify the profit-maximizing strategies of firms in monopolistically competitive markets.

Assess the welfare implications of monopolistic competition, including inefficiencies and externalities.

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Definitions:

Wave Base

The depth at which the action of a wave in an ocean or lake no longer has an effect.

Laterally Right

Describes a feature or movement that extends or shifts to the right side when observed from a specific point or reference.

Laterally Left

Moving or extending to the left side in a horizontal direction.

Spring Tide

A tide that occurs just after a new or full moon, when the difference between high and low tide is greatest due to the alignment of the Sun, Moon, and Earth.