Use the Following to Answer Question

question 4

Multiple Choice

Use the following to answer question

-​If hiring the 6th worker increases total product by 7 units and the price of each unit is $2,

• A)​the firm should not hire the 6th worker as MR<MC
• B)marginal revenue equals $2
• C)the firm should hire the 6th worker as MR>MC
• D)​the firm should not hire the 6th worker as MR<TC

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Definitions:

Underapplied Overhead

Occurs when the allocated overhead cost is less than the actual overhead incurred, leading to a discrepancy in the cost accounting.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company, including the material costs and direct labor costs.

Indirect Labour Costs

Costs related to employees that cannot be directly traced back to a specific product or service, such as supervisory salaries and maintenance labor.

Timesheet

A document or software where employees' working hours are recorded.