Alana's foods produces frozen meals that it sells for $12 each. the company computes a new monthly fixed manufacturing overhead allocation rate based on the planned number of meals to be produced that month. assume all costs and production levels are exactly as planned. the following data are from alana's foods's first month in business:
jan 2011
sales 1200 meals
production 1500 meals
variable manufacturing cost per meal $6
sales commission cost per meal $2
total fixed manufacturing overhead $1,050
total fixed marketing and administrative costs $300
requirements 1. compute the product cost per meal produced under absorption costing and under variable costing.
2. prepare income statements for january 2011 using
a. absorption costing.
b. variable costing.
3. is operating income higher under absorption costing or variable costing in january?

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

Acar manufacturer uses new machines that automatically assemble an engine from parts fed to the system. the machine can regulate the speed ofassembly depending on the number of parts produced. which type of technology does this machine use? angenoem mense wat ons in matin en esta va ser elthe machine uses

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