Dudley, in Problem 15, Has a Utility Function U(C, R)

question 4

Multiple Choice

Dudley, in Problem 15, has a utility function U(C, R) = C - (12 - R) ², where R is leisure and C is consumption per day. He has 16 hours per day to divide between work and leisure. If Dudley has a nonlabor income of $20 per day and is paid a wage of $8 per hour, how many hours of leisure will he choose per day?

• A) 7
• B) 6
• C) 9
• D) 5
• E) 8

Appreciate the principles and applications of Activity-Based Costing (ABC).

Identify the characteristics and examples of unit-level, batch-level, product-level, and facility-level costs.

Recognize how overhead costs are allocated using different overhead rate methods: plantwide, departmental, and activity-based.

Understand the advantages and disadvantages of volume-based allocation methods versus activity-based costing.