-Refer to Exhibit 1-1

question 35

Multiple Choice

-Refer to Exhibit 1-1.If the student whose study habits are illustrated here is currently studying for the 2nd hour she should

• A) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so.
• B) cut back on the number of hours she is studying because the marginal benefit of studying for the 2nd hour is greater than the marginal cost of doing so.
• C) increase the number of hours she is studying because the marginal benefit of studying for the 2nd hour is less than the marginal cost of doing so.
• D) increase the number of hours she is studying because the marginal benefit of studying for the 3rd ,4th,and 5th hours is greater than the marginal cost for each of these hours.

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Definitions:

Manufacturing Overhead Applied

The process of allocating indirect manufacturing costs, such as utilities and rent, to individual units of production based on a predetermined rate or method.

Overhead Applied

The allocation of overhead costs to specific jobs or production activities based on a predetermined rate or method.

Budgeted Net Income

An estimate of a company's future net income over a specific period based on projected revenues and expenses.

December

The twelfth and final month of the year in the Gregorian calendar, often associated with end-of-year activities and holidays.