Beverly Company has determined a standard variable overhead rate of $1.25 per direct labor hour and expects to incur 1 labor hou
r per unit produced. Last month, Beverly incurred 1,900 actual direct labor hours in the production of 2,000 units. The company has also determined that its actual variable overhead rate is $1.20 per direct labor hour. Calculate the variable overhead rate and efficiency variances also indicate if the variable are favorable or unfavorable the total amount of over- or underapplied variable overhead.
In this specific scenario, the executive assistant is expressing nonverbally that he values your time. This is expressed by him stopping what he was doing in order to pay attention to what you have to say to him when you enter the room. Since the work that he is doing (e-mailing clients) is incredibly important, the simple act of him stopping shows that your time is more important to him.
Answer: b. Marginal revenue is less than average revenue
Explanation:
Marginal revenue is the extra revenue received by selling one more unit of a good while Average revenue is the revenue generated on average by all units sold thus far.
If the monopolist has to reduce prices to sell more goods then it would mean that for every unit sold, the price would have reduced compared to the price of the last unit which translates to less revenue coming in per unit compared to the last unit.
On the other hand, on average, the higher prices of the earlier goods sold would keep the average revenue higher than the additional revenue (marginal revenue).
