Given the Technology Matrix A, and an External Demand Vector $A = \left[ \begin{array} { l l } 0.4 & 0.3 \\0.1 & 0.2\end{array} \right]$

question 35

Essay

Given the technology matrix A, and an external demand vector B, find the production vector X.
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​ $A = \left[ \begin{array} { l l } 0.4 & 0.3 \\0.1 & 0.2\end{array} \right]$ , $D = \left[ \begin{array} { l } 27,000 \\24,000\end{array} \right]$

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Definitions:

Direct Labor-Hours

The total number of hours worked by employees who are directly involved in the production process, typically used as a base for applying manufacturing overhead costs.

Overhead Cost

Indirect costs of a business that are not directly tied to a specific product or service, such as rent, utilities, and administrative expenses.

Activity-Based Costing

A costing method that assigns costs to products or services based on the activities they require, aiming for more precise cost allocation.

Machine-Hours

Represents the amount of time machines are operational during production, critical for planning and cost allocation purposes.