Answer:
1800
Explanation:
Production Function is the relationship between production inputs & production outputs, given technology. It shows maximum output that can be produced with minimum inputs, given technology.
Production Function: f (L,K,M) = L + K^2 + 4M
K = 40 , L = 100 , M = 100
Production = 100 + (40)^2 + 100
100 + 1600 + 100
= 1800
Answer:
Actual level of activity which is 290,000 units
Explanation:
Although budgeted was 300,000 units, in order to understand the efficiency of labour in terms of the number of direct labour hours used, it must be flexed in order for it to be comparable.
for example they used only 135,000 units instead of budgeted which is 150,000 but although that is good, it does not tell us all the story, we will also consider the fact that they produced lesser quantities than planned which is 290,000 rather than 300,000.
