Touchie MacFeelie's Production Function Is , Where J Is

question 12

Multiple Choice

Touchie MacFeelie's production function is , where J is the number of old jokes used and L is the number of hours of cartoonists' labor. Touchie is stuck with 900 old jokes for which he paid 4 dollars each. If the wage rate for cartoonists is 6 dollars, then the total cost of producing 24 comics books is

• A) 3,720 dollars.
• B) 3,696 dollars.
• C) 1,848 dollars.
• D) 5,544 dollars.
• E) 924 dollars.

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Definitions:

Revenue Variances

The difference between actual revenue and budgeted or projected revenue.

Spending Variances

The difference between actual spending and budgeted or planned spending in various categories.

Cost Drivers

Factors that cause changes in the cost of an activity or process, which are used to allocate costs based on actual usage or consumption.

Vocational School

An educational institution that provides specialized training and education aimed at preparing students for specific trades, crafts, or careers.