Figure 3-4

question 143

Multiple Choice

Figure 3-4. Botana Company constructed the following formula for monthly utility cost.
Total utility cost = $1,200 + ($8.10 ´ labor hours)
Assume that 775 labor hours are budgeted for the month of April.
Refer to Figure 3-4.If Botana Company incurs 9,600 labor hours for the year,what would be the estimate of total utility cost?

• A)$76,560
• B)$78,960
• C)$92,160
• D)none of these are correct

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Definitions:

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods and services.

Output

The total amount of goods or services produced by an individual, firm, or country over a specific period.

Marginal Product

The additional output that is produced by using one more unit of a particular input, while keeping other inputs constant.

Worker

An individual who performs labour for a company or another person in exchange for compensation.