Culver,Inc

question 116

Multiple Choice

Culver,Inc.produces two different products (Product V3 and Product G8) using two different activities: Machining,which uses machine hours as an activity driver,and Inspection,which uses number of batches as an activity driver.The activity drivers are used as follows: The activity rate for Inspection is $750 per batch.What is the total cost of Inspection?

• A)$11,250
• B)$33,750
• C)$45,000
• D)$75,000

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Definitions:

Actual Output

The real production level of goods and services in an economy within a specific period, measured by GDP.

Potential Output

The maximum amount of goods and services an economy can produce when it is fully employed, without causing inflation.

Structural Unemployment

The occurrence of unemployment because of modifications in the industrial sector, typically induced by technological evolution, as opposed to alterations in the supply or demand of the market.

Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level in an economy and the total production of goods and services by that economy.