You Start Making Regular Deposits to Your Piggy Bank

question 14

Multiple Choice

You start making regular deposits to your piggy bank.The amount P, in dollars, in your piggy bank after t weeks is given by ​ .
The price of the computer you want to buy is decreasing.The price C, in dollars, t weeks after you started saving money is given by .
​
When will there be enough money in your piggy bank to buy the computer? Report your answer as a whole number.
​

• A) After 8 weeks
• B) After 7 weeks
• C) After 10 weeks
• D) There will never be enough.

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Definitions:

Machine-Hours

A measure of the amount of time machines are operated, used as a basis for allocating manufacturing overhead costs in production.

Variable Manufacturing Overhead

Refers to the costs that vary with the level of production output, including items such as indirect materials and electricity to run machinery.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the accounting period begins based on an estimate.

Machine-Hours

A measure of the amount of time a machine is operated, used for allocating machine-related costs to individual units of production.