(Figure: Utility Table Alpha) in the Table, Assume That a Consumer

question 60

Multiple Choice

(Figure: Utility Table Alpha) In the table, assume that a consumer has a budget of $22, apple juice costs $3 per bottle, and scones cost $4 each. Utility will be maximized by buying:
$\quad\quad\quad\quad\text { Apple Juice }$ $\quad\quad\quad\quad\quad\quad\quad\text { Scones }$
$\begin{array}{|c|c|c|c|}\hline \text { Quantity } & \text { Total Utility } & \text { Quantity } & \text { Total Utility } \\\hline 0 & 0 & 0 & 0 \\\hline 1 & 25 & 1 & 31 \\\hline 2 & 43 & 2 & 60 \\\hline 3 & 56 & 3 & 83 \\\hline 4 & 66 & 4 & 105 \\\hline 5 & 74 & 5 & 116 \\\hline\end{array}$

• A) 5 bottles of apple juice and 1 scone.
• B) 4 bottles of apple juice and 3 scones.
• C) 2 bottles of apple juice and 4 scones.
• D) 1 bottle of apple juice and 5 scones.

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Definitions:

Variable Manufacturing Overhead

Costs that vary with the level of production output and are related to manufacturing the product but not directly traceable to specific units of product.

Job J

Likely a specific reference to a job or project within a company, requiring a definition based on its context.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders, based on a selected activity base like machine-hours or labor-hours.

Machine-Hours

A measure of production time, representing the number of hours machines are operating.