Answer:
$183,200
Explanation:
Given that,
Direct labor = $86,000
Total current manufacturing costs = $381,000
Manufacturing overhead is applied to production:
= 130% of direct labor cost
= 1.30 × $86,000
= $111,800
Total manufacturing costs = Direct material + Direct labor + Manufacturing overhead.
$381,000 = Direct material + $86,000 + $111,800
Direct material = $381,000 - $86,000 - $111,800
= $183,200
Therefore, the amount of direct materials used in production is $183,200.
Consider an economy that is operating at its steady state. an increase in the investment rate in this economy will lead to a temporary increase in the growth rate.
In the Solow model, a larger saving rate has no long-term impact on the growth rate. Higher steady-state capital stock and level of output do follow a higher saving rate. The growth rate briefly increases as production changes from a lower to a higher steady-state level. Low rates of saving the result in small capital stock in the steady state and low levels of output in the steady state. Only in the near run do higher savings translate into quicker economic development. Up until the economy reaches its new steady state, an increase in the saving rate causes growth to accelerate.
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Answer:
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