Answer:
C) John's decision on how to allocate his time is consistent with the rationality assumption since the decision is intended to make him better off.
Explanation:
One of the pillars of modern economic theory is that individuals are rational and they will try to maximize their benefit at the lowest possible cost. Since resources are finite, then all our decisions are made on the margin. What is the marginal benefit that we can obtain from purchasing something at its marginal cost (marginal cost = sales price for an individual).
In this case, John is trying to maximize his utility, first he will go to the gym which probably provides a larger benefit to him, and then he is going to study (which also provides a benefit). He could have chosen to either go out to somewhere else or just stayed home and watch TV, play videogames, etc., but apparently these activities do not provide him enough benefits but represent a large cost in time.
Answer: $2.81 per machine hour
Explanation:
Wages and salaries $ 423,000
Activity cost pools 10%
Allocated amount = 10% of $423000
= 0.1 × 423000
= $42,300
Depreciation = $112,000
Activity cost pools 10%
Allocated amount = 10% of 112,000
= 0.1 × 112000
= $11200
Occupancy 154,000
Activity cost pools 20%
Allocated amount = 20% of 154000
= 0.2 × 154000
= $30800
Total allocated amount = $42300 + $11200 + $30800 = $84300
The cost hour is the machine hour which is 30,000
Rate per machine hour = total allocated amount/machine hour
= 84300/30000
= $2.81 per machine hour
Answer:
for the first loan the origonal loan of $180,000 goes up to $453,166
and the second one is $462,446
It becomes easier for businesses to borrow money when the federal reserve increases money supply. Money supply is the quantity of currency and other liquid instruments that are circulating in a nation's economy at a particular time. The central bank of a country can increase the money supply by purchasing government securities on the open market, thereby increasing available funds to private banks. Private banks are thus empowered to lend money to businesses.
Answer:
$6.7 per direct labor hour
Explanation:
Given:
Direct labor-hours = 20,000
Fixed manufacturing overhead cost = $94,000
variable manufacturing overhead = $2.00 per direct labor-hour
Actual manufacturing overhead cost for the year = $123,900
Actual total direct labor = 21,000 hours
Now,
Total Estimated Manufacturing Overhead
= 94000 + ( 2 × 20000 )
= $134,000
And,
Predetremined Overhead Rate = 
or
Predetremined Overhead Rate = 
or
Predetremined Overhead Rate = $6.7 per direct labor hour
