Answer: Option (A) is correct.
Explanation:
Given that,
overhead to each unit produced = $7.50
Department 1:
Manufacturing overhead costs = $74,358
Direct labor hours (DLH) = 6,610
Machine hours = 700 MH
Department 2 :
Manufacturing overhead costs = $49,572
Machine hours = 800 MH
Total Overheads = Manufacturing overhead cost of department 1 + Manufacturing overhead cost of department 2
= $74,358 + $49,572
= $123,930
Total Direct Labor Hours:
= 16,524
Direct Labor Hours for Department 2:
= Total Direct Labor Hours - Direct labor hours of department 1
= 16,524 - 6,610
= 9,914 DLH
The output level is total profit highest in the short run is 40 .
<h3>What is meant by short run ?</h3>
The idea of the short run states that some inputs will be constant while others will change over a specific period of time. It expresses the notion that an economy responds to particular stimuli differently depending on the amount of time it has to do so.
In the short run, certain production parameters are stable and some are flexible. Only by increasing the application of the variable factor can output be enhanced. The scale of manufacturing stays steady in the short term. The lengthy run is a time when all production factors are erratic.
To learn more about short run refer to :
brainly.com/question/24088447
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Answer:
A) productivity and real GDP per person are both higher.
Explanation:
In the long run, an increase in savings will increase total investment. If total investment increases, then the productive capacity (productivity) and the aggregate supply should also increase. An increase in investment is the best way to guarantee a sustainable increase in aggregate demand without increasing the inflation rate.
When productivity increases, the real GDP per capita also increases.
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