Table: Stone Masons A Construction Company Builds Stone Fireplaces

question 94

Multiple Choice

Table: Stone Masons $\begin{array}{|l|r|}\hline \text { Number of Workers } & \text { MPL } \\\hline 1 & \$ 500 \\\hline 2 & 400 \\\hline 3 & 300 \\\hline 4 & 200 \\\hline 5 & 100 \\\hline\end{array}$ A construction company builds stone fireplaces. The market wage for a stonemason is $350 per day. The table depicts the marginal product of labor (MPL) per day for a given number of stonemasons. To maximize profits, this company should hire ______ stonemasons.

• A) 2
• B) 3
• C) 4
• D) 5

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Definitions:

Job F

A designation for a particular task, assignment, or project within an organization, specified as "Job F" for identification.

Machine-Hours

refers to the total number of hours that machinery is in operation during a specific period, used in calculating machine-related expenses or allocations.

Overhead Applied

The amount of manufacturing overhead costs allocated to individual products or job orders based on the predetermined overhead rate.

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead to products or job orders, calculated before production begins based on budgeted costs and activities.